EMPLOYEE STATE INSURANCE ACT, 1948

INTRODUCTION

The Employee State Insurance Act, [ESIC] 1948, is a piece of social welfare legislation
enacted primarily with the object of providing certain benefits to employees in case of sickness, maternity and employment injury and also to make provision for certain others matters incidental thereto. The Act in fact tries to attain the goal of socio-economic justice enshrined in the Directive principles of state policy under part 4 of our constitution, in particular, articles 41, 42 and 43 which enjoin the state to make effective provision for securing, the right to work, to education and public assistance in cases of unemployment, old age, sickness and disablement. The act strives to materialize these avowed objects through only to a limited extent. This act becomes a wider spectrum than factory act, in the sense that the factory act is concerned with the health, safety, welfare, leave etc of the workers employed in the factory premises only. But the benefits of this act extend to employees whether working inside the factory or establishment or elsewhere or they are directly employed by the principal employee or through an intermediate agency, if the employment is incidental or in connection with the factory or establishment. Related Legislations: ESI (Central) Rules, 1950 and ESI (General) Regulations, 1950

ORIGIN
The Employee State Insurance act was promulgated by the Parliament of India in the year 1948. To begin with the ESIC scheme was initially launched on 2nd February 1952 at just two industrial centers in the country namely Kanpur and Delhi with a total coverage of about 1.20 lakh workers. There after the scheme was implemented in a phased manner across the country with the active involvement of the state governments.

OBJECTIVES:
The ESI Act is a social welfare legislation enacted with the object of providing certain benefits to employees in case of sickness, maternity and employment injury. Under the Act, employees will receive medical relief, cash benefits, maternity benefits, pension to dependents of deceased workers and compensation for fatal or other injuries and diseases.

DEFINITIONS

According to Section 2 (m) of Factories Act, 1948, Factory means any premises including the precints thereof - (a) whereon ten or more persons are employed or were employed for wages on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power or is ordinarily so carried on, or (b) whereon twenty or more persons are employed or were employed for wages on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power or is ordinarily so carried on. But does not include a mine subject to the operation of Mines Act, 1952 or a railway running shed;

According to Section 2 (k) of Factories Act, "manufacturing process" means any process for (i) 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, sale, transport, delivery or disposal, or (ii) pumping oil, water, sewage or any other substance; or; (iii) generating, transforming or transmitting power; or (iv) composing types for printing, printing by letter press, lithography, photogravure or other similar process or book binding; lra-6 ] [ lra-7 or lra-7 ] (v) constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; (vi) preserving or storing any article in cold storage;

According to Section 2 (h) of The Minimum Wages Act, "wages"- means all remuneration capable of being expressed in terms of money which would if the terms of the contract of employment express or implied were fulfilled be payable to a person employed in respect of

his employment or of work done in such employment and includes house rent allowance but does not include (i) the value of - (a) any house accommodation supply of light water medical attendance or (b) any other amenity or any service excluded by general or special order of the appropriate government; (ii) any contribution paid by the employer to any person fund or provident fund or under any scheme of social insurance; (iii) any traveling allowance or the value of any traveling concession; (iv) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or (v) any gratuity payable on discharge

APPLICABILITY:

The ESI Act extends to the whole of India. It applies to all the factories including Government factories (excluding seasonal factories), which employ 10 or more employees and carry on a manufacturing process with the aid of power and 20 employees where manufacturing process is carried out without the aid of power.

The act also applies to shops and establishments. Generally, shops and establishments employing more than 20 employees are covered by the Act. Shop according to the Delhi Shops and Establishment Act, 1954 means any premises where goods are sold either by retail or wholesale or where services are rendered to customers, and includes an office, a store-room, godown, warehouse or workhouse or work place, whether in the same premises or otherwise, used in or in connection with such trade or business but does not include a factory or a commercial establishment. Establishment means a shop, a commercial establishment, residential hotel, restaurant, eating-house, theatre or other places of public amusement or entertainment to which this Act applies and includes such other establishment as Government may, by notification in the Official Gazette, declare to be an establishment for the purpose of this Act. According to the Delhi Shops and Establishment Act, 1954, Commercial Establishment means any premises wherein any

trade, business or profession or any work in connection with, or incidental or ancillary thereto is carried on and includes a society registered under the Societies Registration Act, 1860, and charitable or other trust, whether registered or not, which carries on any business, trade or profession or work in connection with, or incidental or ancillary thereto, journalistic and printing establishments, contractors and auditors establishments, quarries and mines not governed by the Mines Act, 1952, educational or other institutions run for private gain, and premises in which business of banking, insurance, stocks and shares, brokerage or produce exchange is carried on, but does not include a shop or a factory registered under the Factories Act, 1948, or theatres, cinemas, restaurants, eating houses, residential hotels, clubs or other places of public amusements or entertainment. Form 01 Employers Registration Form also requires a copy of the registration certificate or licence obtained under the Shops and Establishment Act to be attached along with this form. From this it is quite evident that ESI Act will be applicable to shops and establishments. Again the definition of shops and establishment will vary from state to state depending on the shops and establishment act of that particular state.

The act does not apply to any member of Indian Naval, Military or Air Forces. All employees including casual, temporary or contract employees drawing wages less than Rs 10,000 per month are covered. The ceiling limit has been raised from Rs.7500 to Rs.10000 with effect from 01.10.06.

Apprentices covered under the Apprenticeship Act are not covered under this Act. According to Apprenticeship Act 1961, apprentice means a person who is undergoing apprenticeship training in pursuance of a contract of apprenticeship.

The apprentices under any scheme as the name suggests come to learn the tricks of the trade and may not count much so far as the output of the factory is concerned, with that end in view, the apprentices are exempted from the operation of laws relating to labour unless the State Government thought otherwise.-- Regional Director ESIC v. M/s Arudyog 1987 (1) LLJ 292.

A factory or establishment, to which this Act applies, shall continue to be governed by its provisions even if the number of workers employed falls below the specified limit or the manufacturing process therein ceases to be carried on with the aid of power subsequently.

Where a workman is covered under the ESI scheme,

Compensation under the Workmen's Compensation Act cannot be claimed in respect of employment injury.

No benefits can be claimed under the Maternity Benefits Act.

AREAS COVERED
The ESI Scheme is being implemented area-wise by stages. The Scheme is being implemented in almost all union territories and states except Nagaland, Manipur, Tripura, Sikkim, Arunachal Pradesh and Mizoram.

ADMINISTRATION OF THE ACT

The provisions of the Act are administered by the Employees State Insurance Corporation. It comprises members representing employees, employers, the central and state government, besides, representatives of parliament and medical profession. A standing committee constituted from amongst the members of the corporation, acts as an executive body. The medical benefit council, constituted by the central government, is another statutory body that advises the corporation on matters regarding administration of medical benefit, the certification for purposes of the grant of benefits and other connected matters.

REGISTRATION
The employer should get his factory or establishment registered with the ESI Corporation within 15 days after the Act becomes applicable to it and also obtain the employers code number. Application should be made in Form 01 and after having being satisfied with the application form, the regional office will allot a code number to the employer, which must be quoted in all documents and correspondence.

IDENTITY CARD

An employee is required to file a declaration form upon employment in factory or establishment to show that he is covered under the Act. On registration every insured person is provided with a temporary identification certificate which is valid ordinarily for a period of three months but may be extended, if necessary, for

a further period of 3 months. Within this period, the insured person is given a permanent family photo identity card in exchange for the certificate. The identity card serves as a means of identification and has to be produced at the time of claiming medical care at the dispensary / clinic and cash benefit at the local office of the corporation. In the event of change of employment, it should be produced before the new employer as evidence of registration under the scheme to prevent any duplicate registration. The identity card bears the signature/thumb impression of the insured person. Since medical benefit is also available to the families of Insured persons, the particulars of family members entitled to medical benefit are also given in the identity card affixed with a postcard size family photo. If the identity card is lost, a duplicate card is issued on payment as prescribed.

EMPLOYERS / EMPLOYEES CONTRIBUTION

Like most of the social security schemes, the world over, ESI scheme is a self-financing health insurance scheme. Contributions are raised from covered employees and their employers as a fixed percentage of wages. Presently covered employees contribute 1.75% of the wages, whereas as the employers contribute 4.75% of the wages, payable to the insured persons. Employees earning less than and up to Rs. 50 per day are exempted from payment of contribution. The contribution is deposited by the employer in cash or by cheque at the designated branches of some nationalized banks. The responsibility for payment of all contributions is that of the employer with a right to deduct the employees share of contribution from employees wages relating to the period in respect of which the contribution is payable. There are two contribution periods each of six months duration and two corresponding benefit periods. Cash benefits under the scheme are generally linked with contribution paid. Contribution period - 1st April to 30th September, its corresponding Cash Benefit period is 1st January to 30th June of the following year. Contribution period - 1st October to 31st March, its corresponding Cash Benefit period is 1st July to 31st December of the following year.

CERTIFICATION OF RETURN OF CONTRIBUTION BY AUDITOR

Regulation 26 of Employees State Insurance (General) Regulations, 1950 was amended by Notification No.N-12/13/1/2008-P&D to include certain details to be mentioned in the Return of Contribution to be submitted by employers. The salient features of amendments made in the Returns of Contribution are as under:1. Self-declaration by Employers regarding maintenance of records and registers, submission of Declaration Forms, employees engaged directly or through immediate employers and wages paid to the workers. 2. All the Employers employing 40 and more employees shall have to append a certificate duty certified by a Chartered Accountant, in the revised format of Returns of Contribution. 3. The Employers employing less than 40 employees will have to provide selfcertification without any certification from the Chartered Accountants in Return of Contribution. The Chartered Accountant should certify that he has verified the return from the records and registers of the company. This notification has come into force with effect from 01-04-2008.

BENEFITS UNDER THE SCHEME

Employees covered under the scheme are entitled to medical facilities for self and dependants. They are also entitled to cash benefits in the event of specified contingencies resulting in loss of wages or earning capacity. The insured women are entitled to maternity benefit for confinement. Where death of an insured employee occurs due to employment injury or occupational disease, the dependants are entitled to family pension. Various benefits that the insured employees and their dependants are entitled to, the duration of benefits and contributory conditions thereof are as under:

Medical benefits Sickness benefits

Extended sickness benefit Enhanced sickness benefit Maternity benefit Disablement benefit Dependants benefit Other benefits like funeral expenses, vocational rehabilitation, free supply of physical aids and appliances, preventive health care and medical bonus.

OBLIGATIONS OF EMPLOYERS

1.

The employer should get his factory or establishments registered with the E.S.I. Corporation within 15 days after the Act becomes applicable to it, and obtain the employers Code Number.

2.

The employer should obtain the declaration form from the employees covered under the Act and submit the same along with the return of declaration forms, to the E.S.I. office. He should arrange for the allotment of Insurance Numbers to the employees and their Identity Cards.

3.

The employer should deposit the employees and his own contributions to the E.S.I. Account in the prescribed manner, whether he has sufficient resources or not, his liability under the Act cannot be disputed. He cannot justify non-payment of E.S.I. contribution due to non-availability of finance.

4.

The employer should furnish a Return of Contribution along with the challans of monthly payment, within 30 days of the end of each contribution period.

5.

The employer should not reduce the wages of an employee on account of the contribution payable by him (employer).

6.

The employer should cause to be maintained the prescribed records/registers namely the register of employees, the inspection book and the accident book.

7.

The employer should report to the E.S.I. authorities of any accident in the place of employment, within 24 hours or immediately in case of serious or fatal accidents. He

should make arrangements for first aid and transportation of the employee to the hospital. He should also furnish to the authorities such further information and particulars of an accident as may be required. 8. The employer should inform the local office and the nearest E.S.I. dispensary/hospital, in case of death of any employee, immediately. 9. The employer must not put to work any sick employee and allow him leave, if he has been issued the prescribed certificate. 10. The employer should not dismiss or discharge any employee during the period he/she is in receipt of sickness/maternity/temporary disablement benefit, or is under medical treatment, or is absent from work as a result of illness duly certified or due to pregnancy or confinement.

RECORDS TO BE MAINTAINED FOR INSPECTION BY ESI AUTHORITIES

1. Attendance Register / Muster Roll 2. Salary / Wage Register / Payroll 3. EC (Employees & Employers Contribution) Statement 4. Employees Register 5. Accident Book 6. Return of Contribution 7. Return of Declaration Forms 8. Receipted Copies of Challans 9. Books of Account viz. Cash/Bank, Expense Register, Sales/Purchase Register, Petty Cash Book, Ledger, Supporting Bills and Vouchers, Delivery Challans (if any). 10. Form of annual information on company

EMPLOYEES INSURANCE COURT

Any dispute arising under the ESI Act will be decided by the Employees Insurance Court and not by a Civil Court. It is constituted by the State Government for such local areas as may be specified and consists of such number of judges, as the Government may think fit.

IMPORTANT FORMS TO BE SUBMITTED UNDER THE ACT

Form 01 Form 01(A) Form 1 Form 1A Form 1B Form 3 Form 4 Form 4(A) Form 5 Form 7 Form 8 Form 10 Form 12 Form 12A Form 13 Form 13A Form 14 Form 14A Form 16 Form 17 Form 18

: Employers' Registration Form : Form of Annual Information on

Factory/Establishment

: Declaration Form : Family Declaration Form : Changes in Family Declaration Form : Return of Declaration Forms : Identity Card Family Identity Card Return of Contributions First/Intermediate/Final Certificate Special Intermediate Certificate Abstention verification in r/o Sickness

Benefit/Temporary Disablement Benefit/MB Sickness of Temporary Disablement Benefit Maternity Benefit for Sickness Sickness or Temporary disablement or maternity benefit for sickness Maternity benefit for sickness Sickness or temporary disablement or maternity benefit for sickness Maternity Benefit for Sickness Accident report from employer Dependant's or funeral benefit (Death Certificate) Dependant's Benefit (Claim Form)

Form 18A Form 19 Form 20 Form 21 Form 22 Form 23 Form 24 Form 25 Form 26 Form 27

Dependant's payments)

Benefit

(Claim

for

periodical

Maternity Benefit (Notice of Pregnancy) Maternity Benefit (Certificate of Pregnancy) Maternity Benefit (Certificate of expected

confinement) Claim for Maternity Benefit Maternity Benefit (Certificate of confinement or miscarriage) Maternity Benefit (Notice of work) Claim for Permanent Disablement Benefit Certificate for permanent disablement benefit Declaration and certificate for dependants benefit

EQUAL REMUNERATION ACT, 1976

[Act 25 of 1976 amended by Act 49 of 1987]

Index No.
CHAPTER 1 :- PRELIMINARY 1.1 1.2 1.3 Short title, extent and commencement. Definitions. Act to have overriding erect. CHAPTER 2:- PAYMENT OF REMUNERATION AT EQUAL RATES TO MEN AND WOMEN WORKERS AND OTHER MATTERS 2.1 Duty of employer to pay equal remuneration to men and women workers for same work or work of similar nature. No discrimination to be made while recruiting men and women workers. Advisory Committee. Power of appropriate Government to appoint authorities for hearing and deciding claims and complaints. CHAPTER 3 :- MISCELLANEOUS 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 Duty of employers to maintain registers. Inspectors. Penalties. Offences by companies. Cognizance and trial of offences. Power to make rules. Power of Central Government to give directions. Act not to apply in certain special cases. Power to make declaration.

Particular

Page No.

2.2 2.3 2.4

3.10 Power to remove difficulties. 3.11 Repeal and saving.

An act to provide for the payment of equal remuneration to men and women workers and for the prevention of discrimination, on the ground of sex, against women in the matter of employment and for matters connected therewith or incidental thereto Be it enacted by Parliament in the Twenty-seventh Year of the Republic of India as follow: -

Prefatory Note Statement of Objects and Reasons:Article 39 of Constitution envisages that the State shall direct its policy, among other things, towards securing that there is equal pay for equal work for both men and women. To give effect to this constitutional provision, the President promulgated on the 26 th September, 1975, the Equal Remuneration Ordinance, 1975 so that the provisions of Article 39 of the Constitution may be implemented in the year which is being celebrated as the International Womens Year. The Ordinance provides for payment of equal remuneration to men and women workers for the same work or work of similar nature and for the prevention of discrimination on grounds of sex. (2) The Ordinance also ensures that there will be no discrimination against recruitment of women and provides for the setting up of Advisory committees to promote employment opportunities for women. (3) The Bill seeks to replace the Ordinance.1

CHAPTER 1:- PRELIMINARY

1.1 Short title, extend and commencement:Short Title: - This Act may be called the Equal Remuneration Act, 1976. Extend: - It extends to the whole of India. Commencement: - It shall come into force on such date, not being later than three years from the passing of this Act, as the Central Government may, by notification, appoint and different dates may be appointed for different establishments or employments.

1.2 Definitions:In this Act, unless the context otherwise requires,

(a) Appropriate Government means (i) in relation to any employment carried on by or under the authority of the Central Government or a railway administration, or in relation to a banking company, a mine, oilfield or major port or any corporation established by or under a Central Act, the Central Government, and (ii) In relation to any other employment, the State Government; (b) Commencement of this Act means, in relation to an establishment or employment, the date on which this Act comes into force in respect of that establishment or employment; (c) Employer has the meaning assigned to it in clause (f) of Section 2 of the Payment of Gratuity Act, 1972 (39 of 1972); (d) Man and woman mean male and female human beings, respectively, of any age; (e) Notification means a notification published in the Official Gazette; (f) Prescribed means prescribed by rules made under this Act; (g) Remuneration means the basic wage or salary, and any ad ditional emoluments whatsoever payable, either in cash or in kind, to a person employed in respect of employment or work done in such employment, if the terms of the contract of employment, express or implied, were fulfilled; (h) Same work or work of a similar nature means work in respect of which the skill, effort and responsibility required are the same, when performed under similar working conditions, by a man or a woman and the differences, if any, between the skill, effort and responsibility required of a man and those required of a woman are not of practical importance in relation to the terms and conditions of employment; (i) Worker means a worker in any establishment or employment in respect of which this Act has come into force;

(j) Words and expressions used in this Act and not defined but defined in the Industrial Disputes Act, 1947 (14 of 1947), shall have the meaning respectively assigned to them in that Act.

1.3 Act to have overriding effect:The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law or in the terms of any award, agreement or contract of service, whether made before or after the commencement of this Act, or in any instrument having effect under any law for the time being in force.

CHAPTER 2 PAYMENT OF REMUNERATION AT EQUAL RATES TO MEN AND WOMEN WORKERS AND OTHER MATTERS
2.1 Duty of employer to pay equal remuneration to men and women workers for same work or work of a similar nature. (1) No employer shall pay to any worker, employed by him in an establishment or employment, remuneration, whether payable in cash or in kind, at rates less favorable than those at which remuneration is paid by him to the workers of the opposite sex in such establishment or employment for performing the same work or work of a similar nature. (2) No employer shall, for the purpose of complying with the provisions of subsection(1), reduce the rate of remuneration of any worker. (3) Where, in an establishment or employment, the rates of remuneration payable before the commencement of this Act for men and women workers for the same work or work of a similar nature are different only on the ground of sex, then the higher (in cases where there are only two rates), or, as the case may be, the highest (in cases where there are only two rates), of such rates shall be the rate at which

remuneration shall be payable, on and from such commencement, to such men and women workers: Provided that nothing in this sub-section shall be deemed to entitle a worker to the revision of the rate of remuneration payable to him or her with reference to the service rendered by him or her before the commencement of this Act. 2.2 No discrimination to be made while recruiting men and women workers. On and from the commencement of this Act, no employer shall, while making recruitment for the same work or work of a similar nature, [or in any condition of service subsequent to recruitment such as promotions, training or transfer], make any discrimination against women except where the employment of women in such work is prohibited or restricted by or under any law for the time being in force: Provided that the provisions of this section shall not affect any priority or reservation for scheduled castes or scheduled tribes, ex-servicemen, retrenched employees of any other class or category of persons in the matter of recruitment to the posts in an establishment or employment. 2.3 Advisory Committee. 1) For the purpose of providing increasing employment opportunities for women, the appropriate Government shall constitute one or more Advisory Committees to advise it with regard to the extent to which women may be employed in such establishments or employments as the Central Government may, by notification, specify in this behalf. (2) Every Advisory Committee shall consist of not less than ten persons, to be nominated by the appropriate Government, of which one-half shall be women. (3) In tendering its advice, the Advisory Committee shall have regard to the number of women employed in the concerned establishment or employment, the nature of work, hours of work, suitability of women for employment, as the case may be, the need for providing increasing employment opportunities for women, including parttime employment, and such other relevant factors as the Committee may think fit. (4) The Advisory Committee shall regulate its own procedure.

(5) The appropriate Government may, after considering the advice tendered to it by the Advisory Committee and after giving to the persons concerned in the establishment or employment an opportunity to make representations, issue such directions in respect of employment of women workers, as the appropriate Government may think fit. 2.4 Power of appropriate Government to appoint authorities for hearing and deciding claims and complaints. (1) The appropriate Government may, by notification, appoint such officers, not below the rank of a Lab our Officer, as it thinks fit to be the authorities for the purpose of hearing and deciding(a) Complaints with regard to the contravention of any provision of this Act; (b) Claims arising out of non-payment of wages at equal rates to men and women workers for the same work or work of a similar nature, and may, by the same or subsequent notification, define the local limits within which each, such authority shall exercise its jurisdiction. (2) Every complaint or claim referred to in sub-section (1) shall be made in such manner as may be prescribed. (3) If any question arises as to whether two or more works are of the same nature or of a similar nature, it shall be decided by the authority appointed under sub-section (1). (4) Where a complaint or claim is made to the authority appointed under sub-section (1) it may, after giving the applicant and the employer an opportunity of being heard, and after such inquiry as it may consider necessary, direct, (i) In the case of a claim arising out of a non-payment of wages at equal rates to men and women workers for the same work or work of a similar nature, that payment be made to the worker of the amount by which the wages payable to him exceed the amount actually paid; (ii) In the case of complaint, that adequate steps be taken by the employer so as to ensure that there is no contravention of any provision of this Act.

(5) Every authority appointed under sub-section (1) shall have all the powers of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908), for the purpose of taking evidence and of enforcing the attendance of witnesses and compelling the production of documents, and every such authority shall be deemed to be a Civil Court for all the purposes of Section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). (6) Any employer or worker aggrieved by any order made by an authority appointed under sub-section (1), on a complaint or claim may, within thirty days from the date of the order, prefer an appeal to such authority as the appropriate Government may, by notification, specify in this behalf, and that authority may, after hearing the appeal, confirm, modify or reverse the order appealed against and no further appeal shall lie against the order made by such authority. (7) The authority referred to in sub-section (6) may, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal within the period specified in sub-section (6), allow the appeal to be preferred within a further period of thirty days but not thereafter. (8) The provisions of sub-section (1) of Section 33-C of the Industrial Disputes Act, 1947 (14 of 1947), shall apply for the recovery of monies due from an employer arising out of decision of an authority appointed under this section.

CHAPTER 3 MISCELLANEOUS
3.1 Duty of employers to maintain registers. On and from the commencement of this Act, every employer shall maintain such registers and other documents in relation to the workers employed by him as may be prescribed. 3.2 Inspectors.

(1) The appropriate Government may, by notification, appoint such persons as it think fit to be Inspectors for the purpose of making an investigation as to whether the provisions of this Act, or the rules made there under, are being complied with by employers, and may define the local limits within which an Inspector may make such investigation. (2) Every Inspector shall be deemed to be a public servant within the meaning of Section 21 of the Indian Penal Code (45 of 1860). (3) An Inspector may, at any place within the local limits of his jurisdiction, (4) Any person required by an Inspector to produce any register or other document or to give any information shall comply with such requisition. 3.3 Penalties. (1) If after the commencement of this Act, any employer, being required by or under this act, so to do (a) Omits or fails to maintain any register or other document in relation to workers employed by him, or (b) Omits or fails to produce any register, muster-roll or other document relating to the employment of workers, or (c) Omits or refuses to gives any evidence or prevents his agent, servant, or any other person in charge of the establishment, or any worker, from giving evidence, or (d) Omits or refuses to give any information, He shall be punishable [with simple imprisonment for a term which may extend to one month or with fine which may extend to ten thousand rupees or with both]. (2) If, after the commencement of this Act, any employer (a) Makes any recruitment in contravention of the provisions of his Act, or (b) Makes any payment or remuneration at unequal rates to men and women worker, for the same work or work of a similar nature, or (c) Makes any discrimination between men and women workers in contravention of the provisions of this Act, or

(d) Omits or fails to carry out any direction made by the appropriate Government under sub-section (5) of Section 6. He shall be punishable 4[with fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees or with imprisonment for a term which shall be not less than three months but which may extend to one year or with both for the first offence, and with imprisonment which may extend to two years for the second and Subsequent offences]. (3) If any person being required so to do, omits or refuses to produce to an Inspector any register or other document or to give any information, he shall be punishable with fine, which may extend to five thousand rupees. 3.4 Offences by companies. (1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company, for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation: - For the purposes of this section, (a) Company means anybody corporate and includes a firm or other association of individuals; and

(b) Director, in relation to a firm, means a partner in the firm.

3.5 Cognizance and trial of offences. (1) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act. (2) No court shall take cognizance of an offence punishable under this Act except upon (a) Its own knowledge or upon a complaint made by the appropriate Government or an officer authorized by it in this behalf; or (b) A complaint made by the person aggrieved by the offence or by any recognized, welfare institution or organization. Explanation: - For the purposes of this sub-section recognized welfare institution or organization means a social welfare organization or institution recognized in this behalf by the Central or State Government.] 3.6 Power to make rule. (1) The Central Government may, by notification, make rules for carrying out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely (a) The manner in which complaint or claim referred to in sub-section (1) of Section7 shall be made; (b) Registers and other documents which an employer is required under Section 8 to maintain in relation to the workers employed by him; (c) Any other matter which is required to be, or may be, prescribed. (3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in

making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified from or be of no effect, as the case may be; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. 3.7 Power of Central Government to give directions. The Central Government may give directions to a State Government as to the carrying into execution of this Act in the state. 3.8 Act not to apply in certain special cases. Nothing in this Act shall apply (a) To cases affecting the terms and conditions of a womans employment in complying with the requirements of any law giving special treatment to women, or (b) To any special treatment accorded to women in connection with (i) The birth or expected birth of a child, or (ii) The terms and conditions relating to retirement, marriage or death or to any provision made in connection with the retirement, marriage or death]. 3.9 Power to make declaration. Where the appropriate Government is, on a Consideration of all the circumstances of the case, satisfied that the differences in regard to the remuneration, or a particular species of remuneration, or men and women workers in any establishment or employment is based on a factor other than sex, it may, by notification, make a declaration to that effect, and any act of the employer attributable to such a difference shall not be deemed to be contravention of any provision of this Act. 3.10 Power to remove difficulties. If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by notification, make any order, not inconsistent with the provisions of this Act, which appears to it to be necessary for the purpose of removing the difficulty:

Provided that every such order shall, as soon as may be after it is made, be laid before each House of Parliament. 3.11 Repeal and saving. (1) The Equal Remuneration Ordinance, 1975 (12 of 1975) hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the Ordinance, so repealed (including any notification, nomination, appointment, order or direction made there under) shall be deemed to have been done or taken under the corresponding provisions of this Act, as if this Act were in force when such thing was done or action was taken.

*********************

MATERNITY BENEFIT ACT, 1961

MATERNITY BENEFIT ACT, 1961

1. Objectives:
The Maternity Benefit Act aims to regulate the employment of women in certain establishments for certain periods before and after child-birth and to provide for maternity benefits including maternity leave, wages, bonus, nursing breaks etc.

2. Applicability:
- The Maternity Benefit Act extends to whole of India and is applicable to every factory, mine or plantation including those belonging to Government, irrespective of the number of employees, and to every shop or establishment wherein 10 or more persons are employed or were employed on any day of the preceding 12 months. - The State Government may extend the Act to any other establishment or class of establishments, industrial, commercial, agricultural or otherwise.
- The Act however does not apply to any such factory or other establishment to which the provisions of the ESI (Employees State Insurance Act, 1948) are applicable for the time being.

3. Definitions:
(a) Appropriate Government means in relation to an establishment being a mine
7[or

an establishment where persons are employed for the exhibition of equestrian,

acrobatic and other performances], the Central Government and in relation to any other establishment, the State Government; (b) Child includes a still-born child; (c) Delivery means the birth of a child; (d) Employer means (i) in relation to an establishment which is under the control of the Government, a person or authority appointed by the Government for the supervision and control of employees or where no person or authority is so appointed, the head of the department; (ii) in relation to an establishment which is under any local authority, the person appointed by such authority for the supervision and control of employees or where no person is so appointed, the chief executive officer of the local authority;

(iii) in any other case, the person who are the authority which has the ultimate control over the affairs of the establishment and where the said affairs are entrusted to any other person whether called a manager, managing director, managing agent, or by any other name, such person; (e) Establishment means (i) A factory; (ii) A mine; (iii) A plantation; (iv) An establishment wherein persons are employed for the exhibition of equestrian, acrobatics and other performances; or (v) An establishment to which the provisions of this Act have been declared under Sub-section (4) of section 2 to be applicable. (f) Factory means a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948) (g) Inspector means an Inspector appointed under section 14; (h) Maternity benefit means the payment refereed to in sub-section (1) of section 5; (i) Mine means a mine as defined in clause (j) of section 2 of the Mines Act, 1952 (35 of 1952) (j) Miscarriage means expulsion of the contents of a pregnant uterus at ay period prior to or during the twenty-sixth week of pregnancy but does not include any miscarriage the causing of which ins punishable under the Indian Penal Code (45 of 1860); (k) Plantation means a plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of 1951); (l) Prescribed means prescribed by rules made under this Act; (m) State Government in relation to a Union territory, means the Administrator thereof; (n) Wages means all remuneration paid or payable in cash to a woman, if the terms of the contract of employment, express or implied, were fulfilled and includes

(1) Such cash allowances (including dearness allowance and house rent allowance) as a woman are for the time being entitled to; (2) Incentive bonus; and (3) The money value of the concessional supply of food grains and other articles, But does not include (i) (ii) (iii) any bonus other than incentive bonus; overtime earnings and any deduction or payment made on account of fines; any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the woman under any law for the time being in force; and (iv) (v) any gratuity payable on the termination of service; woman means a woman employed, whether directly or through any agency, for wages in any establishment.

4. Right to payment of maternity benefit:

(1) Subject to the provisions of this Act, every woman shall be entitled to, and her employer shall be liable for, the payment of maternity benefit at the rate of the average daily wage for the period of her actual absence immediately preceding and including the day of her delivery and for the six weeks immediately following that day. (2) The maximum period for which any woman shall be entitled to maternity benefit shall be twelve weeks, that is to say, six weeks up to and including the day of her delivery and six weeks immediately following that day: Provided that where a woman dies during this period, the maternity benefit shall be payable only for the days up to and including the day of her death: Provided further that where a woman, having been delivered of a child dies during her delivery or during the period of six weeks immediately following the date of her delivery, leaving behind in either case the child, the employer shall be liable for the maternity benefit for the entire period of six weeks immediately following the day of her delivery but if the child also dies during the

said period, then for the days up to and including the day of the death of the child.

5. Payment of medical bonus. -- Every woman entitled to maternity benefit under

this Act shall also be entitled to receive from her employer a medical bonus of twenty-five rupees, if no pre-natal confinement and post-natal care is provided for by the employer free of charge.

6. Leave for miscarriage. -- In case of miscarriage, a woman shall, on production of

such proof as may be prescribed, be entitled to leave with wages at the rate of maternity benefit for a period of six weeks immediately following the day of her miscarriage.

7. Leave for illness arising out of pregnancy, delivery, premature birth of child, or miscarriage. -- A woman suffering illness arising out of pregnancy,
delivery, premature birth of child or miscarriage shall, on production of such proof as may be prescribed, be entitled in addition to the period of absence allowed to her under section 6, or, as the case may be, under section 9, to leave with wages at the rate of maternity benefit for a maximum period of one month.

8. Nursing breaks. -- 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 the prescribed duration for nursing the child until the child attains the age of fifteen months.

9. No deduction of wages in certain cases. -- No deduction from the normal and

usual daily wages of a woman entitled to maternity benefit under the provisions of this Act shall be made by reason only of (a) the nature of work assigned to her by virtue of the provisions contained in subsection (3) of section 4 : or (b) breaks for nursing the child allowed to her under the provisions of section 11

10. Appointment of Inspectors. The appropriate Government may, by

notification in the Official Gazette, appoint such officers as it thinks fit to by Inspectors for the purposes of this Act and may define the local limits of the jurisdiction within which they shall exercise their function under this Act.

11. Powers and duties of Inspectors. -- An Inspector may, subject to such

restrictions or conditions as may be prescribed, exercise all or any of the following powers, namely: (a) enter at all reasonable times with such assistants, if any, being persons in the service of the Government or any local or other public authority as he thinks fit, any premises or place where women are employed or work is given to them in an establishment, for the purposes or examining any registers, records and notices required to be kept or exhibited by or under this Act and require their production for inspection; (b) examine any person whom he finds in any premises or place and who, he has reasonable cause to believe, is employed in the establishment: Provided that no person shall be compelled under this section to answer any question or give any evidence tending to incriminate himself: (c) require the employer to give information regarding the names and addresses of women employed, payments made to them, and applications or notices received form them under this Act; and (d) take copies of any registers and records or notices or any portions thereof.

12. Inspectors to be public servants. -- Every Inspector appointed under this Act
shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860).

13 . Power of Inspector to direct payments to be made. -- (1) Any woman

claiming that maternity benefit or any other amount to which she is entitled under this Act and any person claiming that payment due under section 7 has been improperly withheld, may make a complaint to the inspector. (2) The Inspector may, of his own motion or on receipt of a complaint referred to in subsection(1), make an enquiry or cause an inquiry to be made and if satisfied that payment has been wrongfully withheld, may direct the payment to be made in accordance with his orders.

(3) Any person aggrieved by the decision of the Inspector under sub-section (2) may, within thirty days from the date on which such decision is communicated to such person, appeal to the prescribed authority. (4) The decision of the prescribed authority where an appeal has been preferred to it under sub-section (3) or of the Inspector where no such appeal has been preferred, shall be final. (5) Any amount payable under these sections shall be recoverable as an arrear of lane revenue.

14. Forfeiture of maternity benefit. -- 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, he shall forfeit her claim to the maternity benefit for such period.

15. Abstracts of Act and rules thereunder to be exhibited. -- An abstract of

the provisions of this Act and the rules made thereunder in the language or languages of the locality shall be exhibited I a conspicuous place by the employer in every part of the establishment in which women are employed.

16. Registers, etc. Every employer shall prepare and maintain such registers,
records and muster-rolls and in such manner as may be prescribed.

17. Penalty for contravention of Act by employers. -- If any employer

contravenes the provisions of this Act or the rules made thereunder he shall be punishable with imprisonment which may extend to three months, or with fine which may extend to five hundred rupees, or with both; and where the contravention is of any provision regarding maternity benefit or regarding payment of any other amount and such maternity benefit or amount has not already been recovered, the court shall in addition recover such maternity benefit or amount as if it were a fine, and pay the same to the person entitled thereto.

18. Penalty for obstructing Inspector. -- Whoever fails to produce on demand by

the Inspector any register or document in his custody kept in pursuance of this Act or the rules made thereunder or conceals or prevents any person from appearing before or being examined by an Inspector, shall be punishable with imprisonment which ma extend to three months, or with fine which may extend to five hundred rupees or with both.

19. Cognizance of offences. -- (1) No prosecution for an offence punishable under

this Act or any rule made thereunder shall be instituted after the expiry of one year from the date on which the offence is alleged to have been committed and no such prosecution shall be instituted except by, or with the previous sanction of, the Inspector; Provided that in computing the period of one year aforesaid, the time, if any, taken for the purpose of obtaining such previous sanction shall be excluded. (2) No court inferior to that of a Presidency Magistrate or a Magistrate of the First Class shall try any such offence.

20.Protection of action taken in good faith. -- No suit, prosecution or other legal

proceeding shall lie against any person for anything which is in good faith done or intended to be done in pursuance of this Act or of any rule or order made thereunder.

21. Power of Central Government to give directions. -- The Central

Government may give such directions as it may deem necessary to a State Government regarding the carrying into execution the provisions of this Act and the State Government shall comply with such directions.

22. Power to exempt establishments. -- If the appropriate Government is

satisfied that having regard to an establishment or a class of establishments providing for the grant of benefit which are not less favourable than those provided in this Act, it is necessary so to do, it may, by notification in the Official Gazette, exempt subject to such conditions and restrictions, if any, as may be specified in the

notifications, the establishment or class of establishments from the operation of all or any of the provisions of this Act or of any rule made thereunder.

23. Effect of laws and agreements inconsistent with this Act. -- (1) The
provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law or in the terms of any award, agreement or contract of service, whether made before or after the coming into force of this Act: Provided that where under any such award, agreement, contract of service or otherwise, a woman is entitled to benefits in respect of any matter which are more favorable to her than those to which she would be entitled under this Act, the woman shall continue to be entitled to the more favorable benefits in respect of that matter, notwithstanding that she is entitled to receive benefit in respect of other matters under this Act. 2) Nothing contained in this Act shall be construed to preclude a woman from entering into an agreement with her employer for granting her rights or privileges in respect of any matter, which are more favorable to her than those to which she would be entitled under this Act.

Conclusion
Maternity benefit (1) an insured woman shall be qualified to claim maternity for a confinement occurring or expected to occur in a benefit period, if the contributions in respect of her were payable for not less than seventy days in the immediately preceding two consecutive contribution periods.

(2) Subject to the provisions of the Act and the regulations, if any, an insured woman who is qualified to claim maternity benefits in accordance with sub-rule (1) shall be entitled to receive it at the daily rate specified in sub-rule (5) for all days on which she does not work for remuneration during a period of twelve weeks of which not more than six weeks shall precede the expected date of confinement :

Provided that where the insured woman dies during her delivery or during the period immediately following the date of her delivery for which she is entitled to maternity benefits, leaving behind in either case, the child, maternity benefits shall be paid for the whole of that period but if the child also dies during the said period, then for the days up to and including the day of the death of the child, to the person nominated by the insured woman, in such manner as may be specified in the regulations, and if there is no such nominee , to her legal representative.

(3) An insured woman who is qualified to claim maternity benefits in accordance with sub-rule (1) shall, in case of miscarriage or medical termination of pregnancy, be entitled, on production of such proof, as may be required under the regulations, to maternity benefits at the rates specified in sub-rule (5), for all days on which she does not work for remuneration during a period of six weeks immediately following the date of her miscarriage or medical termination of pregnancy.

(4) An insured woman who is qualified to claim maternity benefits in accordance with sub-rule (1), in case of sickness arising out of pregnancy, confinement, premature birth of child or miscarriage or medical termination of pregnancy shall, on production of such proof as may be required under the regulations, be entitled, in addition to the maternity benefits payable to her under any other provisions of the Act, for all days on which she does not work for remuneration, to maternity benefits at the rates specified in the sub-rule (5), for all days on which she does not work for remuneration during an additional period not exceeding one month.

(5) The daily rate of maternity benefit payable in respect of confinement occurring or expected to occur during any benefit period shall be equal to twice the "standard benefit rate" specified in Rule 54 corresponding to the average daily wages in respect of the insured woman during the corresponding contribution period or rupees twenty whichever is higher.

UNORGANIZED SECTOR WORKERS SOCIAL SECURITY ACT OF 2008

What is an unorganized sector?

Unorganized sector means an enterprise owned by individuals or self employed workers and engaged in the production or sale of goods or providing services of any kind whatsoever and where the enterprise employs workers, the number of worker less than 10.

What is unorganized worker?

Unorganized

worker means a home-based worker, self-employed worker or a

wage worker in the unorganized sector.

Introduction:

The Social Security schemes in India cover only a small segment of the organized work force, which may be defined as workers who are having a direct regular employer-employee relationship within an organization. Unorganized workers social security act bill that introduce by Rajya sabha in September 2007, and the bill passed in 2008 that in unorganized sector workers social security act 2008. Unorganized sector workers social security act 2008 has been introduced at the central, state, and local levels. The act provides the formulation of social security schemes for social security and welfare of workers in unorganized sector. It makes provision for registration of all unorganized workers also it pertains to welfare schemes for different section of the organized sector workers on matter relating to life and disability cover,health,insurance and maternity benefits and old age pension. Unorganized sector workers social security act 2008 define the all act that related to employee security, security is the main for any worker so the Indian government also give the organization safety award who give the best security to their worker. In 6-may-2008 in New Delhi arrange the national safety award and the award given by smt.pratibha patil

The National Safety Awards are given at the national level in recognition outstanding safety performances in mines covered under the Mines Act, 1952

of

Social security act schemes in India includes: The Employees State Insurance Act,1948 The Employees Provident Funds & Miscellaneous Provisions Act, 1952 (Separate provident fund legislations Exist for workers employed in Coal mines and tea plantations in the state of Assam and for seamen). The Workmens Compensation Act, 1923 The Maternity Benefit Act, 1961 The Payment of Gratuity Act, 1972

Social security schemes for the unorganized workers in India includes: According to section 2(I) and 3: Indira Gandhi national old age pension scheme. National benefit scheme. Janani surkhsha yojana. Pension of master craft persons. Janshree Bima yojana. Aam admi Bima yojana. According to section 2(m): The Workmens Compensation Act, 1923. Industrial dispatch act, 1947. The Employees State Insurance Act,1948

 The Employees Provident Funds & Miscellaneous Provisions Act, 1952. The Maternity Benefit Act, 1961. The Payment of Gratuity Act, 1972.

Benefits toward government:-

Central government including schemes relating to: Life and disability cover. Health and maternity benefits. Old age protection. Any other benefits as may be determined by central government.

State government including schemes relating to: Provident fund. Employment injury benefit. Housing. Educational schemes for children. Skill up gradation of workers. Old age homes.

Objectives:

The main objectives of the act is to provide substantial security and timely monetary assistance to industry employees and their families when they unable to

meet family and social obligation and to protect them in old age , disablement , early death of the bread winner and in some other contingencies. The other objectives of Unorganized workers social security act 2008 to employee engagement. Because if any employee take the benefit from the organization than they engage toward the organization. All employee also feel that the benefit also provide to them family so according to this act the employee family also get medical facility, pe nsion facility, etcso in result employee can satisfy with organization. Its impact we can see in his/her work..

Definition:
The definition of workers in the Unorganized Workers Social Security Act 2008 should be made as inclusive as possible, to include among others, Especially those who go in and out of the formal and informal sectors of the economy (Like contract laborers). Excluded from the purview of the Act should be two Categories of workers: Workers in the formal sector who are already registered with And covered by the existing Provident Fund (PF) and Employees State Insurance Corporation (ESIC) schemes; and self-employed workers who pay income tax andThose who are relatively better-off such as doctors and lawyers.

Employees' provident funds and miscellaneous provisions act, 1952

The employees provident funds and miscellaneous act, 1952: is a piece of social legislation a beneficent measure, Enacted for the purpose of institution of provident fund for employees in factories and other establishments. Provident fund is an effective old-age and survivorship benefit.

INTRODUCTIONThe Employees Provident Fund and Miscellaneous Provisions Act 1952 was introduced for the benefits of the employees working in the factories and their family members. EPF means the provident fund established under the EPF scheme framed under Section 5 of this Act providing for all or any matters specified in Schedule II. Section 5 of the Act authorised the Central Government to frame employees provident fund scheme for the establishment of provident fund under this Act. The Central Government by notification in the Official Gazette shall have to issue such a notice before framing any such scheme. The Scheme shall apply to all employees or any class of employees of an establishment as Specified. After framing the scheme, as soon as possible a fund shall be established in accordance with the provisions of this Act and the Scheme as such.

Object of the ActThe Object of the act Is to provider substantiel Security timely monetary assistance to

1) Employee 2) And their family members. 3) This act ex tends to the whole of INDIA except the state of JAMMU AND KASHMIR.

Where does This Act apply?

This act applies to every establishment, which Is a factory, and to any other establishment employing 20 or more persons which the Central govt May by notification in the Official Gazette, specify in This behalf But the Central Government Is empowered to apply the provisions of this act to any establishment Employing less than 20 persons By giving a notification at least 2 months before it intends to do so.

DefinitionsIn this Act unless the context otherwise requires: (a) "Appropriate government" means (i) in relation to an establishment belonging to or under the control of the Central Government or in relation to an establishment connected with a railway company a major port a mine or an oil field or a controlled industry or in relation to an establishment having departments or branches in more than one State the Central Government; and (ii) In relation to any other establishment the State Government; (aa) "Authorised officer" means the Central Provident Fund Commissioner Additional Central Provident Fund Commissioner Deputy Provident Fund Commissioner Regional Provident Fund Commissioner or such other officer as may be authorised by the Central Government by notification in the Official Gazette; (b) "basic wages" means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him but does not include : (i) The cash value of any food concession; (ii) any dearness allowance (that is to say all cash payments by whatever name called paid to an employee on account of a rise in the cost of living) house-rent allowance overtime

allowance bonus commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment; iii) Any presents made by the employer; (c) Contribution means a contribution payable in respect of a member under a scheme or the contribution payable in respect of an employee to whom the Insurance Scheme applies; (d) Controlled industry means any industry the control of which by the Union has been declared by a Central Act to be expedient in the public interest; (e) Employer means(i) in relation to an establishment which is a factory, the owner or occupier of the factory, including the agent of such owner or occupier, the legal representative of a deceased owner or occupier and, where a person has been named as a manager of the factory under clause f of sub-section 1 of section 7 of the Factories Act, 1948 (63 of 1948), the person so named; and (ii) in relation to any other establishment, the person who, or the authority which, has the ultimate control over the affairs of the establishment, and where the said affairs are entrusted to a manager, managing director or managing agent, such manager, managing director or managing agent; (f) employee means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment and who gets his wages directly or indirectly from the employer, and includes any person,(i) Employed by or through a contractor in or in connection with the work of the establishment; (ii) Engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961) or under the standing orders of the establishment; (ff) Exempted employee means an employee to whom a Scheme or the Insurance Scheme, as the case may be, would, but for the exemption granted under section 17, have applied;

(Fff) exempted establishment means an establishment in respect of which an exemption has been granted under section 17 from the operation of all or any of the provisions of any Scheme or the Insurance Scheme, as the case may be, whether such exemption has been granted to the establishment as such or to any person or class of persons employed therein; (g) Factory means any premises, including the precincts thereof, in any part of which a manufacturing process is being carried on or is ordinarily so carried on, whether with the aid of power or without the aid of power.

The main provisions of the Act are:

The Act aims to provide for institution of provident funds, family pension funds and deposit linked insurance funds for the employees in the factories and other establishments. Accordingly, three schemes are in operation under the Act. These schemes taken together provide to the employees an old age and survivorship benefits, a long term protection and security to the employee and after his death to his family members, and timely advances including advances during sickness and for the purchase/ construction of a dwelling house during the period of membership. These three schemes are as follows:

Employees' Provident Fund Scheme, 1952 Employees' Deposit Linked Insurance Scheme, 1976 Employees' Pension Scheme, 1995 (replacing the Employees' Family Pension Scheme, 1971)

The Central Government may by notification in the Official Gazette constitute a Central Board of Trustees for the territories to which this Act extends. Also, the Government may constitute an Executive Committee to assist the Board in the performance of its functions.

The contribution which shall be paid by the employer to the fund shall be eight and one-third per cent of the basic wages, dearness allowances and retaining allowance (if any) for the time being payable to each of the employees. While, the employees' contribution shall be equal to the contribution payable by the employer in respect of him and may if any employee so desires and if the Scheme

makes provision therefore be an amount not exceeding eight and one-third per cent of his basic wages, dearness allowances and retaining allowance (if any), subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under the Act. The Central Government may by notification in the Official Gazette constitute one or more Employees' Provident Funds Appellate Tribunal to exercise the powers and discharge the functions conferred on such Tribunal by this Act and every such Tribunal shall have jurisdiction in respect of establishments situated in such area as may be specified in the notification constituting the Tribunal. No employer in relation to an establishment to which any scheme applies, shall by reason only of his liability for the payment of any contribution to the fund, or any charges under this Act or the scheme, reduce whether directly or indirectly, the wages of any employee to whom the scheme applies or the total quantum of benefits in the nature of old age pension gratuity provident fund or life insurance to which the employee is entitled. Whoever for the purpose of avoiding any payment to be made by himself under this Act or of enabling any other person to avoid such payment, knowingly makes or causes to be made any false statement or false representation, shall be punishable with imprisonment or with fine or with both.

Scope and applicability of the actThe scope of the Act can be understood from its applicability. This Act is applied in the following establishments except the exemptions contained in Section 16 of the Act. i) The Act applies to every establishment which is a factory engaged in any industry specified in schedule I and in which 20 or more persons are employed. ii) Any establishment which employs 20 or more persons or class of such establishments which the central Government may, by notification in the Official Gazette specify in this behalf. iii) After giving not less than 2 months notice of its intention the Central Government apply the provisions of this Act to any establishment with less than 20 persons in the employment as provided under Section 1(3).

iv) Not withstanding anything mentioned above as in sub section (1) of Section 16 (Certain establishment statutorily exempt from the applicability of the Act) where it appears to the Central Provident Fund Commissioner, where as an application made to him in this behalf or otherwise, that the employer and the majority of employees in relation to any establishment, have agreed that the provisions of this Act would be made applicable to the establishment. He may apply the provision of this Act to the establishment on and from the date of such agreement or from any subsequent date specified in such agreement under Section 1(4) and Section 3

v) an establishment to which this Act applies must continue to be governed by this Act, even if the number of persons employed therein falls. so at below any time under section 1(5).

vi) Under Section 4, the Central Government by a notification in the official Gazette add any other industry to schedule I and it will apply to any establishment engaged in such industry.

Penalties under the ActAny person who, for the purpose of avoiding any payment of money due from him , or for the purpose of enabling any other person so liable to avoid such payment, is liable to be punished with imprisonment for a term which may extend to one year or with fine of five thousand rupee or with both Similarly, an employer who contravenes the provision of the Act in relation to the payments to be made into the Pension Scheme or makes default in payment of inspection charges stipulated under the Act shall be punishable with imprisonment which may extend to three years

NOTE: Such punishment,

Shall not be less than one year and a fine of ten thousand rupees in case of default in payment of the employees contribution which has been deducted from his wage.

And in all other cases, the punishment shall not be less than imprisonment for a period of six months and a fine of five thousand rupees.

Payment of Gratuity Act, 1972

SECTION
1 2 2A 3 4 4A 5 6 7 7A 7B 8 9 10 11 12 13 14

CONTENT
Short title, extent, application and commencement Definitions Continuous Service Controlling authority Payment of gratuity Compulsory Insurance Power to exempt Nomination Determination of the amount of gratuity Inspectors Powers of Inspectors Recovery of gratuity Penalties Exemption of employer from liability in certain cases Cognizance of offences Protection of action taken in good faith Protection of gratuity Act to override other enactments, etc.

15

Power to make rules

Payment of Gratuity Act, 1972An 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. BE it enacted by Parliament in the Twenty-third Year of Republic of India as follows :

Section: 1 Short title, extent, application and commencement.

(1) This Act may be called the Payment of Grataity Act, 1972. (2) It extends to the whole of India: Provided that in so far as it relates to plantations or ports, it shall not extend to the State of Jammu and Kashmir. (3) It shall apply to (a) every factory, mine, oilfield, plantation, port and railway company; (b) every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months; (c) Such other establishments or class of establishments, in which ten or more employees are

employed, or were employed, or, any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf. (3A) A shop or establishment to which this Act has become applicable shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time after it has become so applicable falls below ten.] (4) It shall come into force on such date as the Central Government may, by notification, appoint.

Section: 2 Definitions.
In this Act, unless the context otherwise requires, (a) "appropriate Government"' means, (i) in relation to an establishment (a) belonging to, or under the control of, the Central Government, (b) having branches in more than one State, (c) of a factory belonging to, or under the control of, the Central Government, (d) of a major port, mine, oilfield or railway company, the Central Government, (ii) in any other case, the State Government; (b) "completed year of service" means continuous service for one year; (c) "continuous service" means continuous service as defined in section 2A;] (d) "controlling authority" means an authority appointed by the appropriate Government

under section 3 ; (e) "employee" means any person (other than an apprentice) employed on wages, [3] 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 the terms of such employment are express or implied, [4] [and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity]. (f) "employer" means, in relation to any establishment, factory, mine, oilfield, plantation, port, railway company or shop (i) belonging to, or under the control of, the Central Government or a State Government, a person or authority appointed by the appropriate Government for the supervision and control of employees, or where no person or authority has been so appointed, the head of the Ministry or the Department concerned, (ii) belonging to, or under the control of, any local authority, the person appointed by such authority for the supervision and control of employees or where no person has been so appointed, the chief executive office of the local authority, (iii) in any other case, the person, who, or the authority which, has the ultimate control over the affairs of the establishment, factory, mine, oilfield, plantation, port, railway company or shop, and where the said affairs are entrusted to any other person, whether called a manager, managing director or by any other name, such person; (g) "factory" has the meaning-assigned to it in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948); (h) "family", in relation to an employee, shall be deemed to consist of (i) in the case of a male employee, himself, his wife, his children, whether married or

unmarried, his dependent parents [6] [and the dependent parents of his wife and the widow] and children of his predeceased son, if any, (ii) in the case of a female employee, herself, her husband, her children, whether married or unmarried, her dependent parents and the dependent parents of her husband and the widow and children of her predeceased son, if any:

Explanation : Where the personal law of an employee permits the adoption by him of a child, any child lawfully adopted by him shall be deemed to be included in his family, and where a child of an employee has been adopted by another person and such adoption is, under the personal law of the person making such adoption, lawful, such child shall be deemed to be excluded from the family of the employee; (i) "major port" has the meaning assigned to it in clause (8) of section 3 of the Indian Ports Act, 1908 (15 of 1908); (j) "mine" has the meaning assigned to it in clause (J) of sub-section (1) of section 2 of the Mines Act, 1952 (35 of 1952); (k) "notification" means a notification published in the Official Gazette; (l) "oilfield" has the meaning assigned to it in clause (e) of section 3 of the Oilfields (Regulation and Development) Act, 1948 (53 of 1948); (m) "plantation" has the meaning assigned to it in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of 1951) ; (n) "port" has the meaning assigned to it in clause (4) of section 3 of the Indian Ports Act, 1908 (15 of 1908); (o) "prescribed" means prescribed by rules made under this Act; (p) "railway company" has the meaning assigned to it in clause (5) of section 3 of the Indian Railways Act, 1890 (9 of 1890);

(q) "retirement" means termination of the service of an employee otherwise than on superannuation; (r) "superannuation", in relation to an employee, means the attainment by the employee of such age as is fixed in the contract or conditions of service at the age on the attainment of which the employee shall vacate the employment;] (s) "wages" means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which arc paid or arc payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance.

Section: 2A Continuous service.

For the purposes of this Act, (1) an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order treating the absence as break in service has been passed in accordance with the standing order, rules or regulations governing the employees of the establishment), lay off, strike or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act. (2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer (a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually

worked under the employer for not less than (i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and (ii) two hundred and forty days, in any other case;

Section: 3 controlling authority

The appropriate Government may, by notification, appoint any officer to be a controlling authority, who shall be responsible for the administration of this Act and different controlling authorities may be appointed for different areas.

Section: 4 Payment of gratuity.

(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, (a) on his superannuation, or (b) on his retirement or resignation, or (c) on his death or disablement due to accident or disease: (2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days wages based on the rate of wages last drawn by the employee concerned: (3) The amount of gratuity payable to an employee shall not exceed three lakhs and fifty thousand] rupees. (4) For the purpose of computing the gratuity payable to an employee who is employed, after his disablement, on reduced wages, his wages for the period preceding his disablement shall be taken to be the wages received by him during that period, and his

wages for the period subsequent to his disablement shall be taken to be the wages as so reduced.

Section: 4A Compulsory insurance

(1) With effect from such date as may be notified by the appropriate Government in this behalf, every employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a State Government, shall, subject to the provisions of sub-section (2), 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 Life Insurance Corporation of India Act, 1956 (31 of 1956) or any other prescribed insurer: (2) The appropriate Government may, subject to such conditions as may be prescribed, exempt every employer who had already established an approved gratuity fund in respect of his employees and who desires to continue such arrangement and every employer employing five hundred or more persons who establishes an approved gratuity fund in the manner prescribed from the provisions of sub-section (1). (3) For the purpose of effectively implementing the provisions of this section, every employer shall within such time as may be prescribed get his establishment registered with the controlling authority in the prescribed manner and no employer shall be registered under the provisions of this section unless he has taken an insurance referred to in subsection (1) or has established an approved gratuity fund referred to in sub-section (2). (4) The appropriate Government may, by notification, make rules to give effect to the provisions of this section and such rules may provide for the composition of the Board of Trustees of the approved gratuity fund and for the recovery by the controlling authority of the amount of the gratuity payable to an employee from the Life Insurance Corporation of India or any other insurer with whom an insurance has been taken under sub-section (1), or as the case may be, the Board of Trustees of the approved gratuity fund. (5) Where an employer fails to make any payment by way of premium to the insurance

referred to in sub-section (1) or by way of 'contribution to all approved gratuity fund referred to in sub-section (2), he shall be liable to pay the amount of gratuity due under this Act (including interest, if any, for delayed payments) forthwith to the controlling authority. (6) Whoever contravenes the provisions of sub-section (5) shall be punishable with fine which may extend to ten thousand rupees and in the case of a continuing offence with a further fine which may extend to one thousand rupees for each day during which the offence continues.

Section: 5 Power to exempt

(1) The appropriate Government may, by notification, and subject to such conditions as may be specified in the notification, exempt any establishment, factory, mine, oilfield, plantation, port, railway company or shop to which this Act applies from the operation of the provisions of this Act if, in the opinion of the appropriate Government, the employees in such establishment, factory, mine, oilfield, plantation, port, railway company or shop are in receipt of gratuity or pensionary benefits not less favourable than the benefits conferred under this Act. (2) The appropriate. Government may, by notification and subject to such conditions as may be specified in the notification, exempt any employee or class of employees employed in any establishment, factory, mine, oilfield, plantation, port, railway company or shop to which this Act applies from the operation of the provisions of this Act, if, in the opinion of the appropriate Government, such employee or class of employees are in receipt of gratuity or pensionary benefits not less favorable than the benefits conferred under this Act. (3) A notification issued under sub-section (1) or sub-section (2) may be issued retrospectively a date not earlier than the date of commencement of this Act, but no such notification shall be issued so as to prejudicially affect the interests of any person.

Section: 6 Nominations.
(1) Each employee, who has completed one year of service, shall make, within such time, in such form and in such manner, as may be prescribed, nomination for the Purpose of' the

second proviso to sub-section (1) of section 4. (2) An employee may, in his nomination, distribute the amount of gratuity payable to him under this Act amongst more than one nominee. (3) If an employee has a family at the time of' making a nomination, the nomination shall be made in favour of one or more members of his family, and any nomination made by such employee in favour of a person who is not a member of his family, shall be void. (4) If at the time of making a nomination the employee has no family, the nomination may be made in favour of any person or persons but if the employee subsequently acquires a family, such nomination shall forthwith become invalid and the employee shall make, within such time as may be prescribed, afresh nomination in favour of one or more members of his family. (5) A nomination may, subject to the provisions of sub-sections (3) and (4), be modified by an employee at any time, after giving to his employer a written notice in such form and in such manner as may be prescribed, of his intention to do so. (6) If a nominee predeceases the employee, the interest of the nominee shall revert to the employee who shall make a fresh nomination, in the prescribed form, in respect of such interest. (7) Every nomination, fresh nomination or alteration of nomination, as the case may be, shall be sent by the employee to his employer, who shall keep the same in his safe custody.

Section: 7 Determination of the amount of gratuity.

(1) A person who is eligible for payment of gratuity under this Act or any person authorised, in writing, to act on his behalf shall send a written application to the employer, within such time and in such form, as may be prescribed, for payment of such gratuity. (2) As soon as gratuity becomes payable, the employer shall, whether an application referred to in sub-section (1) has been made or not, determine the amount of gratuity and

give notice in writing to the person to whom the gratuity is payable and also to the controlling authority specifying the amount gratuity so determined. (3) The employer shall arrange to pay the amount of gratuity within thirty days from the date it becomes payable to the person to whom the gratuity is payable. (3A) If the amount of gratuity payable under sub-section (3) is not paid by the employer within the period specified in sub-section (3), the employer shall pay, from the date on which the gratuity becomes payable to the date on which it is paid, simple interest at such rate, not exceeding the rate notified by the Central Government from time to time for repayment of long-term deposits, as that Government may, by notification specify: (4) For the purpose of conducting an inquiry under sub-section (4), the controlling authority shall have the same powers as are vested in a court, while trying a suit, under the Code of Civil Procedure, 1908 (5 of 1908), in respect of the following matters, namely : (a) enforcing the attendance of any person or examining him on oath; (b) requiring the discovery and production of documents, (c) receiving evidence on affidavits; (d) issuing commissions for the examination of witnesses. (5) Any inquiry under this section shall be a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196, of the Indian Penal Code, 1860 (45 of 1860). (6) Any person aggrieved by an order under sub-section (4) may, within sixty days from the date of the receipt of the order, prefer an appeal to the appropriate Government or such other authority as may be specified by the appropriate Government in this behalf: (7) The appropriate Government or the appellate authority, as the case may be, may, after giving the parties to the appeal a reasonable opportunity of being heard, confirm, modify or reverse the decision of the controlling authority.

Section: 7A Inspectors
(1) The appropriate Government may, by notification, appoint as many Inspectors, as it deems fit, for the purposes of this Act. (2) The appropriate Government may, by general or special order, define the area to which the authority of an Inspector so appointed shall extend and where two or more Inspectors are appointed for the same area, also provide, by such order, for the distribution or allocation of work to be performed by them under this Act. (3) Every Inspector shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code, 1860 (45 of 1860).

Section: 7B Powers of Inspectors.

(1) Subject to any rules made by the appropriate Government in this behalf, an Inspector may, for the purpose of ascertaining whether any of the provisions of this Act or the conditions, if any, of any exemption granted there under, have been complied with, exercise all or any of the following powers, namely: (2) Any person required to produce any register, record, notice or other document or to give any information by an Inspector under sub-section (1) shall be deemed to be legally bound to do so within the meaning of sections 175 and 176 of the Indian Penal Code 1860 (45 of 1860). (3) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974) shall so far as may be, apply to any search or seizure under this section as they apply to any search or seizure made under the authority of a warrant issued under section 94 of that Code.]

Section: 8 Recovery of gratuity.

If the amount of gratuity payable under this Act is not paid by the employer, within the

prescribed time, to the person entitled thereto, the controlling authority shall, on an application made to it in this behalf by the aggrieved person, issue a certificate for that amount to the Collector, who shall recover the same, together with compound interest thereon at such rate as the Central Government may, by notification, specify,] from the date of expiry of the prescribed time, as arrears of land revenue and pay the same to the person entitled thereto :

Section: 9 Penalties.
(1) Whoever, for the purpose of avoiding any payment to be made by himself under this Act or of enabling any other person to avoid such payment, knowingly makes or causes to be made any false statement or false representation shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to ten thousand rupees or with both. (2) An employer who contravenes, or makes default in complying with, any of the provisions of this Act or any rule or order made there under shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to one year, or with fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees, or with both:

Section: 10 Exemption of employer from liability in certain cases.

Where an employer is charged with an offence punishable under this Act, he shall be entitled, upon complaint duly made by him and on giving to the complainant not less than three clear days notice in writing of his intention to do so, to have any other person whom he charges as the actual offender brought before the court at the time appointed for hearing the charge; and if, after the commission of the offence has been proved, the employer proves to the satisfaction of the court (a) that he has used due diligence to enforce the execution of this Act, and

(b) that the said other person committed the offence in question without his knowledge, consent or connivance, that other person shall be convicted of the offence and shall be liable to the like punishment as if he were the employer and the employer shall be discharged from any liability under this Act in respect of such offence:

Section: 11 Cognizance of offences.

(1) No court shall take cognizance of any offence punishable under this Act save on a complaint made by or under the authority of the appropriate Government: (2) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act.

Section: 12 Protection of action taken in good faith.

No suitor other legal proceeding shall lie against the controlling authority or any other person in respect of anything which is in good faith done or intended to be done under this Act or any rule or order made there under.

Section: 13 Protection of gratuity.

No gratuity payable under this Act and no gratuity payable to an employee employed in any establishment, factory, mine, oilfield, plantation, port, railway company or shop exempted under section shall be liable to attachment in execution of any decree or order of any civil, revenue or criminal court.

Section: 14 Act to override other enactments, etc.

The provisions of this Act or any rule made there under shall have effect notwithstanding anything inconsistent therewith contained in any enactment other than this Act or in any instrument or contract having effect by virtue of any enactment other than this Act.

Section: 15 Power to make rules.

(1) The appropriate Government may, by notification make rules for the purpose of carrying

out the provisions of this Act. (2) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session ii-immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall, thereafter, have effect only in such modified form or be of no effect as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

THE PAYMENT OF WAGES ACT, 1936

OBJECTIVE OF THE ACT

The main objective of the act is to ensure regular and prompt payment of wages and to prevent unauthorized deductions and arbitrary fine from the wages. It also regulates the rate of payment for overtime work. The act is applicable to person employed in factory/ industrial establishment and drawing less than rs 1600/per month. To avoid unnecessary delay in the payment of wages. To prevent unauthorized deductions wages.

INTRODUCTION
The payment of wages act, 1936 regulates the payment of wages to certain classes of persons employees in industry. It was formed to ensure that the wages payable to employees covered by the act are disbursed by the employer within the prescribed time limit and that no deduction other than those authorized by law are made by the employer. As of 1 January 1996, the law was last amended through the payment of wages (amendment) act, 1982, which came into effect on 15 October 1982.

DEFINITION [Section 2]

1) Employed person [section 2(i)]:

Employed person includes the legal representative of a deceased employed person.

2) Employer[Section2(ia)]:
Employer includes the legal representative of deceased employer.

3) Factory[Section 2(ib)]:
It means a factory as defined in section 2 (m) of the factories Act 1948 and includes any place to which the provisions of the factories Act 1948 have been applied under Section 85 of that act.

4) Industrial or other establishment [Section 2(ii)]:

Industrial establishment or other establishment for the purposes of this act means any: i) Tramway Service or motor transport service engaged in carrying passengers or goods or both by road for hire or reward. ii) Air transport service other than sub service belonging to or exclusively employed in the military naval and air force of union or civil aviation department of government of India. iii) iv) v) vi) vii) Dock, wharf or jetty. Inland vessel mechanically propelled. Mine quarry or oilfield. Plantation. Workshop or other establishment in which articles are produced adapted or manufactured with view to their used transport or sale. viii) Any other establishment or class of establishment which the central government or a state government may having regard to the nature or thereof the need for protection of person employed there in and other relevant circumstances specify by notification in the official gazette.

Wages [sec 2 (6)]

Wages means all remunerations capable of being expressed in terms of money , which would if the terms of the contract of employment , expressed of implied , were full filled , be payable to person employed irrespective of his employment or of work done in such employment and includes house rent allowances.

APPLICABILITY
The Payment of Wages Act extends to the whole of India.

It is applicable to any factory, any railway establishment and any industrial or other establishment like tramway service, motor transport service, air, oilfields, plantation, workshop, or other establishment producing, adapting or manufacturing any article, establishments engaged in construction, development and maintenance of buildings, roads, bridges or canals, navigation, irrigation or water supply, transmission, generation and distribution of electricity/power and any other establishment notified by the Central or a State Government.

The Act is not applicable to persons whose wages are 1600 or more per month.

BENEFITS
The act prescribes for i) The regular and timely payment of wages (on or before 7th day or 10th day after last day of the wage period in respect of which the wages are payable) ii) Preventing unauthorized deductions being made from wages and arbitrary fines.

SEC 1: APPLICATION OF THE ACT

The payment of wages act,1936 extends to whole of India Persons employed In any country By railway administration or, either directly or through a sub-contractor In an industrial or other establishments. Act applies to employed persons drawing average wages not exceeding Rs. 10000/per month

PROVISIONS OF THE ACT

RESPONSIBILITY FOR PAYMENT OF WAGES [SEC 3]
Every employer shall be responsible for the payment to persons employed by him of wages required to be paid under this Act: Provided that in case of persons employed (otherwise than by a contractor) a) In factories, if a person has been named as them angers of the factory under section 7 of the Factories Act, b) in industrial or other establishments, if there is a person responsible to the employer for the supervision and control of the industrial or the industrial or other establishment c)upon railways (otherwise than in factories), if the railway administration and the railway administration has nominated a person in this behalf for the local area concerned; the person so named, the person so responsible to the employer, or the person so nominated, as the case may be, [shall also be responsible ] for such payment

FIXATION OF WAGE-PERIODS
(1) Every person responsible for the payment of wages under section 3 shall fix periods (in this Act referred to as wage-periods) in respect of which such wages shall be payable (2) No wage-period shall exceed one month Fixation of wage-periods [sec 4]

TIME OF PAYMENT OF WAGES

The wages of every person employed upon or in (A) Any railway, factory or [industrial or other establishment] upon or in which less than one thousand persons are employed, shall be paid before the expiry of the seventh day, (b) Any other railway, factory or [industrial or other establishment], shall be paid before the expiry of the tenth day, after the last day of the wage-period in respect of which the wages are payable. Time of payment of wages [sec 5]

DEDUCTION [SEC 7 TO 13]

Sec 7(1) says that every payment made by the employed person to the employer or his agent shall, for the purposes of this Act, be deemed to be deduction from wages.

 SEC 7: AUTHORIZED DEDUCTIONS FROM WAGES

General Rule - The wages of an employed person shall be paid to him without deductions of any kind except those authorized by or under this Act. Fines Deductions for absence from duty Deductions for damage to or loss of goods of employed person Deductions for house-accommodation supplied by the employer

FINES
The following guidelines are applied for imposing fines: A notice specifying the approved list of acts and omissions shall be displayed on the premises. An opportunity must be given before the imposition of fines. The total amount of fine which may be imposed in any one wage period shall not exceed an amount equal to 3% of the wages payble to an employee. There is no fine to on any person under the age of 15 years. Fine register shall be maintained.

PENALTIES
Penalties have been provided for contravention of various provisions of the act, varying from a fine of Rs 500 to Rs 1000.

CLAIMS
Application must be made within 12 months from the date of deduction or from the date on which the payment was due.

SEC 6: METHOD OF PAYMENT OF WAGES

Wages must be paid in current coin or currency notes or in both and not in kind. Wages can be paid by cheque or by crediting them in the bank account if so authorized in writing by an employed person.

PAYMENT OF BONUS ACT, 1965

INTRODUCTION

An act to provide for the payment of bonus to persons to employed in certain establishments on the basis of production or productivity and for matters connected therewith.

It extends to the whole of India every other establishment in which 20 or more persons are employed on any day during an accounting year.

HISTORY OF PAYMENT OF BONUS ACT, 1965

The practice of paying bonus in India appears to have originated during First World War when certain textile mills granted 10% of wages as war bonus to their workers in 1917. In certain cases of industrial disputes demand for payment of bonus was also included. In 1950, the Full Bench of the Labour Appellate Tribunal evolved a formula for determination of bonus, A plea was made to raise that formula in 1959. At the second and third meetings of the Eighteenth Session of Standing Labour Committee (G.O.I.) held in New Delhi in March/ April 1960, it was agreed that a Commission be appointed to go into the question of bonus and evolve suitable norms. A Tripartite Commission was set up by the Government of India to consider in a comprehensive manner, the question of payment of bonus based on profits to employees employed in establishments and to make recommendations to the Government. The Government of India accepted the recommendations of the Commission subject to certain modifications. To implement these recommendations the Payment of Bonus Ordinance, 1965, was promulgated on 29th May, 1965. To replace the said Ordinance the Payment of Bonus Bill was introduced in the Parliament.

ACT 21 OF 1965

The Payment of Bonus Bill having been passed by both the Houses of Parliament received the assent of the President on 25th September, 1965. It came on the Statute Book as THE PAYMENT OF BONUS ACT, 1965 (21 of 1965).

OBJECTIVE OF PAYMENT OF BONUS ACT, 1965

The object of the Payment of Bonus Act is to provide for the payment of bonus (linked with profit or productivity) to persons employed in certain establishments and matters connected therewith.

DEFINITION OR MEANING OF BONUS

1). In simple words, An extra amount of money given to an employee for his \her excellent work is called as bonus. 2). An additional compensation given to an employee above his/her normal wage. A
bonus can be used as a reward for achieving specific goals set by the company, or for dedication to the company. 3).

Bonus Payment Bonus is a reward that is paid to an employee for his good work towards the

organisation. The basic objective to give bonus is to share the profit earned by the organisation amongst the employees and staff members. In India there is a principle law relating to this procedure of payment of bonus to the employees and that principle law is named as Payment of Bonus Act,1965. The Payment of Bonus Act applies to every factory and establishment employing not less than 20 persons on any day during the accounting year. The establishments covered under the Act shall continue to pay bonus even if the number of employees fall below 20 subsequently.

4). Payment of Bonus

Bonus is a sum of money given in addition to regular wages to an employee in appreciation of his good work and good performance. The employee receives this bonus from his employer under the Payment of Bonus Act, 1965. The calculation of bonus is as follows: Minimum bonus:Minimum bonus is 8.33 % of the salary or wages of an employee or Rs. 100 in case of employees above 15 years of age and Rs 60 in case of employees below 15 years of age. Maximum Bonus:When the allocable surplus exceeds the minimum bonus, the employer should pay bonus in proportion to the salary or wages earned by the employee subject to a maximum of 20% of such salary or wages. In some special cases where the salary or wage of an employee exceeds Rs. 1600/per month, minimum or maximum bonus payable to such employee shall be calculated as if his salary or wage were Rs. 1600/- per month.
Applicability:

The Act is applicable in whole of India where 10 or more workers are working, or were working on any day of the preceding 12 months with the aid of power. Or whereon 20 or more workers are working or were working on any day of preceding 12 months without the aid of power.

The Payment of Bonus Act extends to the whole of India and is applicable to every factory and to every establishment wherein 20 or more workers are employed on any day during an accounting year.

The Central/State Government can however, extend its provisions to any establishment employing less than 20 but more than 10 employees. For the purpose of calculating the number of employees for applicability of the Act, parttime employees are also included.

Every employee not drawing more than Rs.3500 per month who has worked for not less than 30 days in an accounting year, shall be eligible for bonus.

Eligibility for bonus Every employee not drawing salary/wages beyond Rs. 10,000 per month who has worked for not less than 30 days in an accounting year, shall be eligible for bonus for minimum of 8.33% of the salary/wages even if there is loss in the establishment whereas a maximum of 20% of the employees salary/wages is payable as bonus in an accounting year. However, in case of the employees whose salary/wages range between Rs. 3500 to Rs. 10,000 per month for the purpose of payment of bonus, their salaries/wages would be deemed to be Rs. 3500.

There are provisions and benefits for newly formed establishments as well. As per these provisions/benefits, the first five accounting years following the accounting year in which the employer sells goods/renders services, bonus is payable only in respect of the accounting year, in which profits are made but the provisions of set on and set off would not apply. Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year. Time limit for payment of bonus: (VALIDITY) It is mentioned in the Act that all amounts payable to an employee by the way of bonus are to be paid in cash. It is also mentioned that within 8 months from the close of the accounting year the bonus should be paid to the employees. In exception to where there is dispute regarding payment of bonus pending before an authority (Under Industrial Disputes Act) within 1 month from the date on which the award becomes enforceable or settlement comes into operation, in respect of such dispute.

There is a proposed amendment in the Payment of Bonus Act in the year 2010, but which is still under proposal and has not come into force. The amendment bill is known as The Payment of Bonus (Amendment) Bill, 2010 and will come into force on a date when Central Government may notify it by official gazette.

RELATED SECTIONS OF THE ACT

Section 1: Short title, extent and application (1) This Act may be called the Payment of Bonus Act, 1965. (2) It extends to the whole of India (3) Save as otherwise provided in this Act, it shall apply to (a) every factory ; and (b) every other establishment in which twenty or more persons are employed on any during an accounting year. (4) Save as otherwise provided in this Act, the provisions of this Act shall, in relation to a factory or other establishment to which this Act applies, have effect in respect of the accounting year commencing on any day in the year 1964 and in respect of every subsequent accounting year. (5) An establishment to which this Act applies shall continue to be governed by this Act notwithstanding that the number of persons employed therein falls below twenty or, as the case may be, the number specified in the notification issued under the provison to sub-section(3).

Section 3: Establishments

to

include

departments,

undertakings

and

branches

Where an establishment consists of different departments or undertakings or has branches, whether situated in the same place or in different places, all such departments or undertakings or branches shall be treated as parts of the same establishment for the

purpose of computation

of

bonus under this

Act:

Provided that where for any accounting year a separate balance-sheet and profit and loss account are prepared and maintained in respect of any such department or undertaking or branch, then, such department or undertaking or branches shall be treated as a separate establishment for the purpose of computation of bonus under this Act for that year, unless such department or undertaking or branch was, immediately before the commencement of that accounting year treated as part of establishment for the purpose of computation of bonus.

Section 20: Application of Act to establishments in public sector in certain cases (1) If in any accounting year an establishment in public sector sells any goods produced or manufactured by it or renders any services, in competition with an establishment in private sector, and the income from such sale or services or both is not less than twenty percent of the gross income of the establishment in public sector for that year, then, the provisions of this Act shall apply in relation to such establishment in public sector as they apply in relation to a like establishment in private sector. (2) Save as otherwise provided in sub-section (1), nothing in this Act shall apply to the employees employed by any establishment in public sector.

Section 31-A: Special provision with respect to payment of bonus linked with production or Notwithstanding anything contained in this productivity Act,-

(i) where an agreement or a settlement has been entered into by the employees with their employer before the commencement of the Payment of Bonus (Amendment) Act, 1976 (23

of 1976),or (ii) where the employees enter into any agreement or settlement with their employer after such commencement, for payment of an annual bonus linked with

production or productivity in lieu of bonus based on profits payable under this Act, then, such employees shall be entitled to receive bonus due to them under such agreement or settlement, as the case may be:

Provided that any such agreement or settlement whereby the employees relinquish their right to receive the minimum bonus under Section 10 shall be null and void insofar as it purports to deprive them of such right:

Provided further that such employees shall not be entitled to be paid such bonus in excess of twenty percent of the salary or wage earned by them during the relevant accounting year.

Section 34: Effect

of

laws

and

agreements

inconsistent

with

the

Act

Subject to the provisions of Section 31-A, the provisions of this Act, shall have effect notwithstanding anything consistent therewith contained in any other law for the time being in force or in the terms of any award, agreement, settlement or contract of service.

Section 39: Application

of

certain

laws

not

barred

Save as otherwise expressly provided, the provisions of this Act shall be in addition to and not in derogation of the Industrial Disputes Act, 1947 or any corresponding law relating to investigation and settlement of Industrial Disputes in force in a State.

WORKMENS COMPENSATION ACT, 1923

Introduction To The Act:
The Workmens Compensation Act, 1923 is one of the earliest labor welfare and social security legislation enacted in India. It recognizes the fact that if a workman is a victim of accident or an occupational disease in course of his employment, he needs to be compensated.

The Act does not apply to those workers who are insured under the Employees State Insurance Act 1948. Section 53 of the Employees State Insurance Act provides:

An insured person or his dependents shall not be entitled to receive or recover whether from the employer of the insured person or from any other person any compensation or damages under the Workmens Compensation act1923 or any other law for the time being in force or otherwise in respect of an employment injury sustained bythe insured person as an employee under this Act.

Definitions:
Compensation: Compensation means compensation as provided for by this Act. Dependent: Dependent means any of the following relatives of a deceased workman, namely: i) A widow, a minor, legitimate or adopted son, an unmarried legitimate or adopted daughter or a widowed mother; and ii) If wholly dependent on the earnings of the workman at the time of his death a son or a daughter who has attained the age of 18 years and who is infirm; iii) If wholly or in part dependant on the earnings of the workman at the time of his death: a) A widower, b) A parent other than a widowed mother, c) A minor, illegitimate son, an unmarried illegitimate daughter, or a daughter legitimate or

Illegitimate or adopted if married and a minor or if widowed and minor, d) A minor brother or an unmarried sister or a widowed sister if a minor, e) A widowed daughter-in-law, f) A minor child of a pre-deceased son, g) A minor child of a pre-deceased daughter where no parent of the child is alive, or h) A paternal grandparent if no parent of the workman is alive. Workman: Workman means any person other than a person whose employment is of a Casual nature and who is employed otherwise than for the purposes of the employers trade or business. Disablement: Disablement means loss of capacity to work or to move. Disablement of a workman may result in loss or reduction of his earning capacity. In the latter case, he is not able to earn as much as he used to earn before his disablement. Disablement may be partial, or total. Further Partial disablement may be permanent, or temporary.

Employer : Employer includes anybody or persons whether incorporated or not and any managing agent of an employer and the legal representative of a deceased employer and when the services of a workman are temporarily lent or let on hire to another person by the person with whom the workman has entered into a contract of service or apprenticeship means such other person while the workman is working for him.

Objectives Of The Act:

The Workmens Compensation Act, aims to: 1) Provide workmen and/or their dependents some relief or to consider compensation payable by an employer to his workmen in case of accidents arising out of and in the course of employment and causing either death or disablement of workmen as a measure of relief and social security.

2) Provide for payment by certain classes of employers to their workmen compensation for injury by accident. 3) To enable a workmen to get compensation irrespective of his negligence. 4) It lays down the various amounts payable in case of an accident, depending upon the type and extent of injury. The employer now knows the amount of compensation he has to pay and is saved of many uncertainties to which he was subject before the Act came into force.

Scope of the Act:

1) The Act is confined to industries which are more or less organized. 2) The workmen whose occupation is hazardous should be included within the scope of this Act.

Employers Liability for Compensation *Section 3+:

An employer is liable to pay compensation to a workman: 1) For personal injury caused to him by accident, and 2) For any occupational disease contracted by him. 1) Personal Injury: Personal injury includes: i. ii. Must have been caused during the course of his employment; and Must have been caused by accident arising out of his employment.

An accident alone does not give a workman a right to compensation. To entitle him to compensation at the hands of the employers the accident must arise out of and in the course of his employment. The language in Section 3 shows that injury is caused by accident and not by an accident. So the injury should be caused by accident by some mishap, unexpected or unforeseen. The personal injury caused to the worker must have resulted in total or partial disablement of the workman for a period exceeding three days or it must have resulted in the death of the worker. The injury should not have been caused by accident which is directly attributable to: i. The workman having been under the influence of drink or drugs at the time of the accident;

ii.

Willful disregard of instruction relating to safety precautions given by the employer; and/or

iii.

The willful disregard of the usage of the safety device or safety guard provided for the purpose of securing safety of the workman by the employer.

3) Occupational Disease: Section 3(2) of the Act also recognizes that the workman employed in certain types of industries of occupation risk exposure to certain occupational disease peculiar to that employment. This section states that the contracting of any of these occupational diseases shall be deemed to be:

i.

An injury by accident within the meaning of the Act and compensation is payable to the workman who contracts such disease;

ii.

The types of employment which exposes the workman to occupational disease as well as the list of occupational diseases are contained in Schedule III of the Act.

Schedule III is divided into three parts, viz., A, B and C. No specific period of employment is necessary for a claim for compensation with respect to occupational diseases mentioned in Part A. For diseases specified in Part B the workman must be in continuous service of the same employer for a period of six months in the employment specified in that part. For diseases in Part C the period of employment would be such as is specified by the Central Government for each of such employment whether in the service of one or more employers. If a workman employed in any employment mentioned in Part C of the Schedule II contracts any occupational disease peculiar to that employment, the contracting whereof is deemed to be an injury by accident within the meaning of Section 3 and such employment was under more than one employer then all the employers shall be liable for the payment of compensation in such proportion as the commissioner in the circumstances may deem just.

Amount of Compensation [Section 4]:

Section 4 of the Act prescribes the amount of compensation payable under the provisions of the Act. The amount of compensation payable to a workman depends on: 1) The nature of the injury caused by accident.

2) The monthly wages of the workman concerned, and 3) The relevant factor for working out lump-sum equivalent of compensation amount as specified in Schedule IV (as substituted by Amendment Act of 1984). There is no distinction between an adult and a minor worker with respect to the amount of compensation. New Section 4 (as substituted by the Amendment Act of 1984) provides for compensation for: 1) Death; 2) Permanent total disablement; 3) Permanent partial disablement; and 4) Temporary disablement total or partial.

1. Compensation for Death: Where death results from an injury, the amount of compensation shall be equal to 50 percent of the monthly wages of the deceased workman multiplied by the relevant factor, or Rs. 85,000 whichever is more. 2. Compensation for Permanent Total Disablement: Where permanent total disablement results form an injury, the amount of compensation payable shall be equal to 60 percent of the monthly wages of the injured workman multiplied by the relevant factor, or Rs. 90,000, whichever is more. 3. Compensation for Permanent Partial Disablement: i) In the case of an injury specified in Part II of Schedule I, such percentage of the compensation which would have been payable in the case of permanent total disablement as is specified therein as being the percentage of the loss of earning capacity caused by the injury; and in other words, the percentage of compensation payable is proportionate to the loss of earning capacity permanently caused by the scheduled injury. Thus, if the loss of earning capacity caused by an injury specified in Part II of Schedule I is 30 percent, the amount of compensation shall be 30 percent of compensation payable in case of permanent total disablement. i i) In the case of an injury not specified in Schedule I such percentage of the compensation payable in the case of permanent total disablement as is proportionate to the loss of earning capacity (as assessed by the qualified medical practitioner) permanently caused by the injury.

4. Compensation for Temporary Disablement: A half monthly payment of the sum whether total or partial results equivalent to 25% of monthly wages of the from the injury workman to be paid in the manner prescribed. 5. Compensation to be Paid when due and Penalty for Default: Section 4A provides for the payment of compensation and the penalty for default. It provides that

compensation shall be paid as soon as it falls due. Section 4 mandates employer to pay compensation amount as soon as it falls due to victim or his or her legal heirs. However, where the employer does not accept the liability for compensation to the extent claimed, he shall be bound to make provisional payment based on the extent of liability which he accepts, and such payment shall be deposited with the Commissioner or made to the workman, as the case may be, without prejudice to the right of workman to make any further claim.

Distribution of Compensation/Procedure for Compensation [Section 8]:

Section 8 of the Act provides for the deposit of the compensation before the Commissioner, as also to the distribution of compensation by the Commissioner. Section 8 lays down following rules with regard to distribution of compensation: 1. No payment of compensation in respect of workman whose injury has resulted in death, and no payment of lump sum as compensation to a woman or a person under a legal disability, shall be made otherwise then by deposit with the Commissioner, and no such payment made directly by an employer shall be deemed to be a payment of compensation. 2. Any other sum amounting to not less than ten rupees which is payable as compensation may be deposited with the Commissioner on behalf of the person entitled thereto. 3. The receipt of the Commissioner shall be a sufficient discharge in respect of any compensation deposited with him. 4. On the deposit of any money under sub-section (1), as compensation in respect of a deceased workman the Commissioner shall, if he thinks necessary, cause notice to be published or to be served on each dependant in such manner as he thinks fit,

calling upon the dependents to appear before him on such date as he may fix for determining the distribution of the compensation. If the Commissioner is satisfied, after any inquiry which he may deem necessary, that no dependant exists, he shall repay the balance of the money to the employer by whom it was paid. 5. Compensation deposited in respect of a deceased workman shall, subject to any deduction made under subsection (4), be apportioned among the dependants of the deceased workman or any of them in such proportion as the Commissioner thinks fit or may, in the discretion of the Commissioner, be allotted to any one dependant. 6. Where any compensation deposited with the Commissioner is payable to any person, the Commissioner shall, if the person to whom the compensation is payable is not a workman or a person under a legal disability, and may, in other cases, pay the money to the person entitled thereto. 7. i) Where any lumpsum deposited with the Commissioner is payable to a woman or a person under a legal disability, such sum may be invested, applied or otherwise dealt with for the benefit of the woman, or of such person during his disability, in such manner as the Commissioner may direct. ii) Where a half-monthly payment is payable to a person under legal disability, the Commissioner may pay it to any dependant of the workman or to any other person whom the Commissioner thinks best fitted to provide for the welfare of the workman. 8. The Commissioner may, on account of neglect of children on the part of a parent or on account of the variation of the circumstances of any dependant, or for any other sufficient cause, vary his earlier orders regarding distribution or investment of compensation. But no such order prejudicial to any person shall be made unless such person has been given an opportunity of showing because why the order should not be made. 9. Where the Commissioner varies any order under sub-section (8) by reason of the fact that payment of compensation to any person has been obtained by fraud, impersonation or other improper means any amount so paid to or on behalf of such person may be recovered as an arrear of land revenue.

 Notice And Claim For Compensation [Section 10]:

Section 10 of the Act prescribes that a claim for compensation shall be entertained by the commissioner only after a notice of the accident has been given to him. Such notice should be given as soon as practicable after the date of the accident. The claim of compensation however be preferred within 2 years form the date of accident or death. In case of deemed accident arising out of occupational disease the date of accident will be recorded as the first day on which the workman starts absenting himself continuously as a consequence of the disease. Failure to give notice shall not bar the entertainment of the claim by the commissioner under the following circumstances, namely: 1) If the death of a workman resulting from the accident occurred on the premises of the employer or at any place where the workman at the time of accident was working under the control of the employer and the workman died at such place or at such premises belonging to the employer and died without having left the vicinity of the premises or the place where the accident occurred; or 2) If the employer or any of the several employers or his manager has knowledge of the accident from any other source at or about the time when it occurred. Every notice shall be served upon the employer. It may be served by delivering it at or sending it by registered post and addressed to the residence or any of office or place of business of the person on whom it is to be served. Where a workman has given a notice of accident he should submit himself for medical examination if required by the employer. And such medical examination shall take place within 3 days from the date of service of the notice of accident to the employer Refusal to submit himself for medical examination will result in the suspension of the right of the workman for compensation during the period of refusal During the period of suspension of the right no compensation shall be paid to the workman.

Power to Require from Employers Statements Regarding:

1) Where a Commissioner receives information from any source that a workman has died as a result of an accident arising out of and in the course of his employment he may send by registered post a notice to them workmans employer requiring him to submit within thirty days of the service of the notice a statement in the prescribed form giving the circumstances attending the death of the workman and indicating whether in the opinion of the employer he is or is not liable to deposit compensation on account of the death. 2) If the employer is of opinion that he is liable to deposit compensation he shall make the deposit within thirty days of the service of the notice. 3) If the employer is of opinion that he is not liable to deposit compensation he shall in his statement indicate the grounds on which he disclaims liability. 4) Where the employer has so disclaimed liability the Commissioner after such inquiry as he may think fit may inform any of the dependants of the deceased workman that it is open to the dependants to prefer a claim for compensation and may give them such other further information as he may think fit. . Reports of Fatal Accidents and Serious Bodily Injuries [Section 10B]

1) Whereby any law for the time being in force notice is required to be given to any authority by or on behalf of an employer of any accident occurring on his premises which results in death or serious bodily injury the person required to give the notice shall within seven days of the death or serious bodily injury send a report to the Commissioner giving the circumstances attending the death or serious bodily injury; provided that where the State Government has so prescribed the person required to give the notice may instead of sending such report to the Commissioner send it to the authority to whom he is required to give the notice. Explanation: Serious bodily injury means an injury which involves or in all probabi lity will involve the permanent loss of the use of or permanent injury to any limb or the permanent loss of or injury to the sight or hearing or the fracture of any limb or the enforced absence of the injured person from work for a period exceeding twenty days. 2) The State Government may by notification in the Official Gazette extend the provisions of sub-section (1) to any class of premises other than those coming within

the scope of that sub-section and may by such notification specify the person who shall send the report to the Commissioner. 3) Nothing in this section shall apply to factories to which the Employees State Insurance Act 1948 applies.

Contracting [Section 12]:

1) Where any person (hereinafter in this section referred to as the principal) in the course of or for the purposes of his trade or business contract with any other person (hereinafter in this section referred to as the contractor for the execution by or under the contractor of the whole or any part of any work which is ordinarily part of the trade or business of the principal the principal shall be liable to pay to any workman employed in the execution of the work any compensation which he would have been liable to pay if that workman had been immediately employed by him; and where compensation is claimed from the principal this Act shall apply as if references to the principal were substituted for references to the employer except that the amount of compensation shall be calculated with reference to the wages of the workman under the employer by whom he is immediately employed. 2) Where the principal is liable to pay compensation under this section he shall be entitled to be 3) Indemnified by the contractor or any other person from whom the workman could have recovered Compensation and where a contractor who is himself a principal is liable to a pay compensation or to Indemnify a principal under this section he shall be entitled to be indemnified by any person standing to him in the relation of a contractor from whom the workman could have recovered compensation and all questions as to the right to and the amount of any such indemnity shall in default of agreement be settled by the Commissioner. 4) Nothing in this section shall be construed as preventing a workman from recovering compensation from the contractor instead of the principal. 5) This section shall not apply in any case where the accident occurred elsewhere that on in or about the premises on which the principal has undertaken or usually undertakes as the case may be to execute the work or which are otherwise under his control or management.

 Penalties [Section 18A]:

1) Whoever: i) Fails to maintain a notice-book which he is required to maintain under sub-section (3) of section 10, or ii) Fails to send to the Commissioner a statement which he is required to send under sub-section (1) of section 10A, or iii) Fails to send a report which he is required to send under section 10B, or iv) Fails to make a return which he is required to make under section 16 shall be punishable with fine which may extend to five thousand rupees. 2) No prosecution under this section shall be instituted except by or with the previous sanction of a Commissioner and no Court shall take cognizance of any offence under this section unless complaint thereof is made within six months of the date on which the alleged commission of the offence came to the knowledge of the Commissioner.