Faqs On Labour Laws Handbook

FREQUENTLY
ASKED QUESTIONS
ON
LABOUR LAWS
1
TABLE OF CONTENTS
S.N Name of the Act Page

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1. The Payment of Gratuity Act, 1972 3
2. Employees Pension Scheme, 1995 4–8
3. The Employees Provident Fund and MP 9 – 17

Act, 1952
4. 18 – 19
The Payment of Bonus Act, 1965
5. 20 – 21
The Maternity Benefit Act, 1961
6. 22 – 23
The Contract Labour Regulation and
Abolition Act, 1970
7. 24 – 35
The Employees State Insurance Act, 1948
8. 36 - 38
Industrial Dispute Act, 1947
9. 39 - 41
The Minimum Wages Act, 1948
10. 42 - 46
The Payment of Wages Act, 1936
11. 47 - 48
Employment of Exchanges Act, 1959
12. 49
Trade Union Act, 1926
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THE PAYMENT OF GRATUITY ACT-1972
1. When is gratuity applicable to an employee?
Ans: Gratuity is applicable to a permanent employee who completes 5 years of continuous service
with the
organisation.
2. Which form has to be filled for nomination of Gratuity?
Ans: Form F has to be filled for Nomination of Gratuity.
3. who can be nominated for Gratuity?
Ans: If employee is married than he/she can nominate spouse, if not then dependant parents.
4. if an employee does not have dependant parents or is not married, can he/she
nominate
his/her brother or sister?
Ans: Yes he/she can do that, but sooner or later he/she acquires a family than the employee has to
communicate
the same to the HR department to make the necessary changes in Nomination.
5. When is an employee eligible for getting gratuity?
Ans: Employee has to complete continuous service of 5 years, but after the ruling of Madras High
Court if there are 240 working days in the 5th year even then an employee is eligible for the
gratuity.
6. What if an employee completes 4 years & 6 months of service, is he eligible for

Gratuity?
Ans: No, but where an employee has completed 4 years & 240 days of continuous service in the 5th
year he is
eligible for the Gratuity.
7. What if an employee before completing 5 years of continues service expires, is he

eligible for
Gratuity?
Ans: In case the employee expires before completing 5 years and gratuity could be paid to the
nominee of the
deceased employee provided the employee has completed a year of service.
8. What is the maximum Gratuity payable to an employee?
Ans: Maximum Gratuity payable to an employee is Three Lakhs Fifty Thousand only.
9. Is retrenched employee entitled to gratuity?
Ans: Yes, a retrenched employee is also entitled to gratuity.
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Back to Contents Page
EMPLOYEE PENSION SCHEME, 1995.
1) Who will be covered by the Pension Scheme?

Every member of the ceased Family Pension Scheme 1971 and anyone who joins any covered
establishment on or after 16-11-95 is compulsorily to join this scheme, provided his/her
salary/wage is less than Rs. 6500/- per month at the date of appointment.
2) What is a covered establishment?

Covered establishment is an establishment belonging to the class of industries / other
establishments, which has been listed in the schedule appended to the Employees' Provident
Fund and Miscellaneous Provisions Act 1952 and where 20 or more persons are employed.
3) If employee was a Family Pension Scheme member. He/She has left on 13-12-93 and
he/she is
54 years old. He/She has taken his withdrawal benefit. Can he/she join the new
scheme?
Yes, by refunding withdrawal benefit together with interest. Thereafter, he/she will be entitled to
receive pension from age 58, if he/she completes at least 10 years of contributory service by
then.
4) If employee is a Family Pension Scheme Member and he/she has retired after 58
years of age on
15-01-94. Can he/she join the new scheme?
Yes, anyone who has retired by reaching age 58 between 01-04-93 and 15-11-95 may join the
scheme by returning the withdrawal benefit along with interest. He will be paid pension with
immediate effect, from date of exit provided he has rendered 10 years of contributory service.
5) If employee is not a Family Pension Scheme member and he/she is 56 years of age,
Can he/she
join Family Pension?
Yes, by diverting from his/her Provident Fund balance, Family Pension Scheme contribution from
date of his/her joining or 01-03-71, whichever is later.
6) Whether the Family Pension Scheme member who has attended the age of 58 years
before 01-
04-93 and has left employment after 01-04-93 will be admitted to the scheme as
member of
Family Pension Scheme, 1971?
Yes, he will be deemed to have retired after 01-04-93. On repayment of that withdrawal benefit
which was paid, Pension will be paid from same date, provided he has rendered 10 years of
contributory service.
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7) In case Family Pension member has attained the age of 58 years between 01-04-93
and 16-11-
95 then in that case whether arrears of monthly Member Pension become payable for
the period
earlier than 16-11-95 i.e. from the date of his/her attaining the age of 58 years which
is prior to
16-11-95?
No, he/she will be deemed to have retired from 16-11-95 and pension paid accordingly.
8) Is employee the only beneficiary of Fund?

Benefit will be paid to him/her and in his/her absence to his/her family.
9) What is meant by ‘Family’?

Family means employees' spouse and children below 25 years of age.
10) Suppose an employee does not have a Family and he/she dies before receiving
benefit. Does
his/her pension get lost?
No, if he/she does not have a family, benefits will be paid to his/her nominee, who will receive
the benefit in
his/her absence.
11) Suppose member has not nominated anyone.

The pension / ROC will be paid to the dependent parents.
12) Can member change his/her nomination?

He/She can change his/her nomination whenever he/she decides within the framework of rules
for such nomination. In other words if he/she has a family, nomination should be in favour of a
member(s) of the family. If he/she has no family he/she can nominate anyone he/she wishes.
13) How many years service is required to be eligible to receive member pension?
Minimum 10 years eligible service will entitle for member pension.
14) Employee is a member of Employees' Pension Scheme. He/She has left employment
at 48 yrs.
of age and 8 yrs. of service. When shall he/she receive his/her pension?
He/She can take either withdrawal benefit or can take scheme certificate so that the 8 years
service can be added to any future service that he / she may put in, in any other covered
establishment. By virtue of being a holder of a scheme certificate, if the member dies before 58
years widow / widower and children shall be entitled for pension.
15) What is past service pension?
This pension is for the period of membership of the Employees' Family Pension Scheme, 1971.
16) When does an employee become eligible to become a member of Employees'

Provident Fund
Scheme, 1952 and Employees' Deposit Linked Insurance Scheme, 1976?
An employee becomes a member of Employees Provident Fund (Employees' Provident Fund)

Scheme, 1952 / Employees Deposit Linked Insurance (Employees' Deposit Linked Insurance)
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Scheme, 1976 immediately on joining an establishment covered under the Employees Provident
Funds & Miscellaneous Provision Act, 1952.
17) What is nomination?
Every member has to give the details of himself & details of the nominee for Employees'
Provident Fund & Employees' Deposit Linked Insurance Schemes and details of family for
Employees Pension Scheme, 1995 in form no. 2.
A member if, is having a family can nominate any one or more persons to receive the Provident
Fund on his death. In case of him having no family he can nominate any other person.
Family for the purpose of Employee Provident Fund Scheme'52 means wife/husband, children,
whether married or unmarried, including adopted children, if adoption is recognized and
dependant parents of member.
Employees Deposit Linked Insurance Scheme benefit will be paid to the nominee under
Employees Provident Fund Scheme, 1952.
For the purpose of Employees Pension Scheme, 1995 the member has to furnish the details,
such as name, relationship & age of all the family members in the form no. 2. Family for the
purpose of Employees Pension Scheme, 1995 means wife/husband & children. Whenever
member wants to make a change in the nomination already made for Provident Fund, or to
update the details of family for Employees Pension Scheme, 1995, he has to send a revised
form no. 2. The form no.2 is routed through the employer.
18) What are the periodical returns to be sent by an employer to the Provident Fund
Office?
The employer of an un-exempted establishment has to forward the following returns. These
returns will include details required under the three schemes namely, Employees Provident
Fund Scheme, 1952, Employee Deposit Linked Insurance Scheme, 1976 and Employee Pension
Scheme, 1995.
a) Form-9(Revised):
The details of employees enrolled as members of Employees' Provident FundS'52, Employees'

Deposit Linked Insurance'76 & Employees' Pension Scheme'95 on coverage of the
establishment- This is to be submitted immediately after coverage, within 15 days of coverage.
b) Form-12A:
The details of the contributions recovered form the members & paid along with details of
employers' contribution & administrative charges- This is to be submitted monthly by 25th of
following month.
c) Form-5:
The details of the employees enrolled newly to the Provident Fund- To be submitted along with
Form-12A every month within 15 days of the following month.
d) Form-10:
The details of the employees leaving service during the month- To be submitted along with
form-12A.
e) Challans:
The triplicate copy of challans in token of having remitted the Provident Fund dues in the bank-
to be submitted along with form-12A every month.
f) Form-2 (Revised):
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Nomination form- To be submitted along with form-5/9.
g) Form-3A:
The details of wages & contributions in respect of each member, to be prepared financial year
wise- To be submitted to the Provident Fund office by 30th of April every year.
h) Form-6A:
Yearly consolidated statement of contributions- To be forwarded yearly along with form-3A. It

should be ensured that all the form-3A are entered in form-6A, irrespective of whether the form-
3A was forwarded for the broken period and the total dues as per the form-12A for the whole
year agrees with the total of form-6A within 30th April.
i) Form-5A:
Return of ownership of the establishment- To be forwarded immediately after coverage &
whenever there is a change in the ownership, it has to be intimated with in 15 days of change.
j) Specimen signature:
Specimen signature of the officer/officers who are authorized to sign the returns/documents
relating to Provident Fund forwarded immediately after coverage & whenever there is a change
in
authorized officer.
19) What is the procedure to be followed by the member if the employer is not attesting
his claim
forms?
It is the duty of the employer under the Act & Scheme to help Employees' Provident Fund
organisation to settle the Provident Fund dues of his employees. He has to complete the
prescribed application within 5 days of receipt [para72 (5)] forms & hand over it to the member
when he leaves the service. When a member finds difficult to get the form attested by the
employer, he can get the attestation of any of the following officer & send to the Provident Fund
office.
Manager of a bank.
By any gazetted officer.
Member of the Central Board of Trustees. / Committee/ Regional Committee
(Employees ‘Provident Fund Organization).
Magistrate/ Post/ Sub Post Master/ President of Village Panchayat/ Notary Public.
20) What is the mode of payment of Provident Fund and Employees' Deposit Linked
Insurance
dues?
Provident Fund & Employees' Deposit Linked Insurance dues is paid by money order/ by deposit
in payees' bank a/c/ through employer/ by depositing the cheque in payees' name or part of
amount in annuity scheme in any nationalized bank. Payment by money order is allowed where
the amount is not more than Rs. 2000/-.
21) What are the modalities to be followed for payment through cheque?
The member has to open an account in the nationalized bank, scheduled bank, urban bank or
post office savings bank. He has to furnish the details of bank a/c no. with the full address of the
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bank in application form. An advance stamped receipt has also to be annexed in the form.
For receipt of pension member/claimant has to open an account only in State Bank of India or
Punjab National Bank.
22) In case of returning of cheque what is the procedure to be followed?
Generally the cheques are returned by the bankers when the a/c number is furnished incorrect
or a/c has been closed. On receipt of the cheque from the bankers the Provident Fund office will
write to the member & employer about the fact & request them to intimate the bank, a/c
number & detailed address. In case, the member comes to know about returning of the cheque
before this, he can write to the Provident Fund office through his former employer regarding his
present address & bank a/c number.
23) What is the time taken for disposal of the application in the Provident Fund office?
The claims received complete in all respects are disposed off within a maximum period of 30
days from the date of receipt of claims in the office. In case the member is not hearing anything
about his application within 30 days, he can approach the Public Relation Officer.
24) What is the voluntary rate of Provident Fund contribution by the member?
As per the Act, the member has to contribute at the rate of 10% or 12% of his basic pay, D.A. &
retaining allowance if any. In case the member wants to contribute more than this, voluntarily
he can do so at any rate he desires. i.e. upto 100% of basic and D.A. But the employer is not
bound to contribute at the enhanced rate.
Instructions for a member while sending application to Employees' Provident Fund.
Use the appropriate form for claiming Provident Fund Pension, withdrawal benefit/scheme
certificate, Employees' Deposit Linked Insurance benefit, etc. as given below: -
• Form-19: To claim final settlement of Provident Fund by a member.
• Form-20: To claim Provident Fund by nominee/legal heir on death of the member.
• Form-10-D: To claim pension. (In duplicate: If within state, In triplicate: If outside state.)
• Form-10-C: To claim withdrawal benefit/scheme certificate under Employees' Pension
Scheme '95.
• Form-5IF: To claim assurance benefit under Employees' Deposit Linked Insurance '76 by
nominee/legal heir of a member.
• Form-31: To claim temporary withdrawal/advance under Employees' Provident Fund
scheme
'52.
• Form-13: To effect transfer of Provident Fund/Pension from one A/C to another.
Ensure that all columns of the application are filled completely.
Information in the application form relating to name, a/c no. should agree with the details
available with Employees' Provident Fund Organization; which were furnished by the
employer at the time of enrolling to Provident Fund.
Application should be signed by the member/claimant.
It should be attested by the former employer. In case attestation by the former employer is
not possible,
it should be got attested by any other authorized official specified with application form.
Application for final settlement can be sent by a member on completion of 2 months from
the date of leaving service, if the reason for leaving service is other than superannuation,
medical ground, retrenchment and V.R.S./ Female members getting married etc.
Desired mode of payment can be given legibly, if the amount involved is more than Rs.
2000/-. The amount will be sent by deposit in payees' bank a/c. To facilitate this, Bank a/c
no., name and address of the bank should be furnished. An advance stamped receipt should
also accompany this application.
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Application may be supported by the return Form-10, showing the details of leaving service
and details of contribution for the year in Form-3A, if not sent earlier by the employer.
Specific additional requirements:

A) Death cases:
• Nominee/legal heir should apply in Form-20 /Form-10-D /Form-5IF.
• If the member has not executed any nomination, application should be supported by
certificate of family members issued by employer/revenue official/sworn in an
affidavit by the family/ member/legal certificate from a court of law.
• Death certificate of the member.
Certificate of the employer stating whether the death was while in service of the
member or not.
B) Pension cases:
• Joint photograph of member/spouse or the claimant should accompany the
application.
• Option for return of capital/commutation should be specified clearly.
• Details of non-contributory period during the service, wages/salary for last 12 months
should also accompany, if not already sent.
• Details of the branch of the specified bank may be given legibly.
• Date of birth certificates of children
• In case of death away from service, an undertaking by the claimant to the effect that
the member was not working / had not worked in any other covered establishment
after exit from the establishment on the basis of which pension is being claimed.
THE EMPLOYEE PROVIDENT FUND & MP ACT, 1952

Q1) What is the Contribution for Provident Fund both by the Employer & Employee?
Ans: The Employee contributes 12% of his /her Basic Salary & the same amount is contributed by
the Employer.
Q2) Is it Compulsory for the all the employees to contribute to the Provident Fund?
Ans: Employees drawing basic salary upto Rs 6500/- have to compulsory contribute to the Provident
fund and
employees drawing above Rs 6501/- have an option to become member of the Provident Fund.
Q3) Is it beneficial for employees who draw salary above Rs 6501/- to become member
of Provident Fund?
Ans: Yes because provident fund contribution by the employer & employee is not a
taxable income for Income Tax purpose.
Q4) What if an employee while joining establishment has a basic salary of Rs 4200 and
after some
period of time his basic salary increases above Rs 6501/-, does he have an option
to terminate
his member ship form the Provident fund act?
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Ans: Employee who while joining the organisation has a basic salary above Rs 6501/- have an
option to either
become or avoid becoming member of Provident fund but employees whose basic salary while
joining the
organization is less then Rs 6501/- but after some period of time their basic increases above Rs
6501/- have
to compulsorily continue to be member of provident Fund.
Q5) What is the contribution percentage to the Provident fund and Pension Scheme?
Ans: Employee’s contribution of 12% of basic salary is totally deposited in provident fund
account whereas out of Employer’s contribution of 12%, 3.67% is contributed to Provident
fund and 8.33% is deposited in Pension scheme.
Q6) Which form has to be filled while becoming member of provident fund?
Ans: Nomination Form No 2 has to be filled to become a member of the Provident fund, form is
available with HR department.
Q7) Which form has to be filled while transferring provident fund deposit?
Ans: You just have to fill form no 13 to transfer your P.F amount.
Q8) What is the provision of the scheme in the matter of nomination by a member?
Ans: Each member has to make a nomination to receive the amount standing to his credit in the
fund in the event of his death. If he has a family, he has to nominate one or more person
belonging to his family and none other. If he has no family he can nominate any person or
persons of his choice but if he subsequently acquires family, such nomination becomes invalid
and he will have to make a fresh nomination of one or more persons belonging to his family. You
cannot make your brother your nominee as per the Acts.
Q9) When is an employee eligible to enjoy pension scheme?
Ans: For an employee to become eligible for Pension fund, he has to complete membership of
the Fund for 10 Years.
Q10) What does it mean by continuous service of ten years?
Ans : When we say continuous service of 10 years in Employee Pension Fund, we mean to say
that during services, for e.g., an employee who has worked with X company for say 3 years,
then he resigned from that organisation and joined Y company, wherein he worked for 2 years,
then resigned from there to join establishment for 5 years but during these 10 years of service
he has not withdrawn but transferred his Employee pension fund, then we say continuous
service of ten years.
Q11) When can an employee avail the benefit of Employee pension fund scheme which
he has
contributed during his ten years of continues service?
Ans: An employee can avail the benefit after completion of 58 years of service.
Q12) What happens to the provident fund & Employee Pension fund if an employee who
wants to
resign from the service before completion of ten years of continues service?
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Ans: Employee can withdraw the PF accumulations by filling Forms 19 & 10 C, which is available
with the HR department.
Q13) What is this 19 & 10C form?
Ans: Form No 19 is for Provident fund withdrawal & Form No. 10 C is for Pension scheme
withdrawal.
Q14) Do we get any interest on the amount, which is deposited, in the Provident Fund
account?
Ans: Compound interest as declared by the Govt. is given for

every year of service.
Q15) What is the accounting year for Provident fund account?
Ans: Accounting year is from March to February.
Q16) What are the benefits provided under Employee Provident Fund Scheme?
Ans: Two kinds of benefits are provided under the scheme-

a) Withdrawal benefit
b) Benefit of non -Refundable advances
Q18) What is the purpose of the Employee's Pension Scheme?
Ans: The purpose of the scheme is to provide for

1) Superannuation pension.
2) Retiring Pension.
3) Permanent Total disablement Pension
Superannuation Pension: Member who has rendered eligible service of 20 years and retires on
attaining the age of 58 years.
Retirement Pension: member who has rendered eligible service of 20 years and retires or
otherwise ceases to be in employment before attaining the age of 58 years.
Short service Pension: Member has to render eligible service of 10 years and more but less than
20 years.
Q19) How much time does it takes to receive P.F & pension money if an employee
resigns from the
Service?
Ans: Normally the procedure for receiving P.F & Pension money is, the employee has to fill 19 &
10 c Form and submit the same to PF Desk, which is then submitted to the P.F office after two
months, this two months is nothing but a waiting period as the rules are that an employee
should not be in employment for two months after resigning if he has to withdraw his P.F
amount. After completion of two months the form is submitted to the regional provident fund
Commissioner office after which the employee receives his amount along with interest within a
period of 90 days.
Q20) Do we receive money through postal order?
Ans: Previously there was a procedure wherein member use to get P.F through Postal order but
now while
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submitting the P.F form withdrawal form you have to mention your saving Bank account No. &
the complete address of the Bank where you hold the account.
Q21) How would I know the amount of accumulations in my PF account?
Ans: PF office sends an annual statement through the employer, which gives details about the
PF accumulations. The statement contains details like, Opening balance, amount contributed
during the year, withdrawal during the year, interest earned and the closing balance in the PF
account. This statement is sent by the PF department on completion of the financial year.
Q22) which establishments are covered by the Act?
Ans: Any establishment, which employs 20 or more employees. Except apprentice and casual
laborers, every Employee including contract labour who is in receipt of Basic+ DA salary up to
Rs. 6500 p.m. is covered by the Act.
Q23) In case after registering the establishment at any point in time, the number of
employees
working in it becomes less than 20 then will the Act apply?
Ans: Any establishment which has been covered under the Act once shall continue to be
governed by the Act even if the number of persons employed therein at any time falls below
20.
Q24) Is the Act applicable to a factory, which is closed down but is employing a few
employees to
look after the assets of the establishment?
Ans: No, Where the establishment is closed down and only four security men are employed for
keeping a watch over the assets and properties of the establishments, the Act would not be
applicable.
Q25) Is a trainee an employee under the Act?
Ans: Yes, a trainee would be considered as an employee as per the Act but in case the
trainee is an
apprentice under the Apprentice's Act then he/ she will not be considered as an employee
under this Act.
Q26) Is it possible to appeal the orders of the Central Government or the Central
Provident Fund
Commissioner?
Ans: Yes, there is a body called as Provident Fund Appellate Tribunal where an employer can
appeal.
Q27) Who is the authority to decide regarding the disputes if any?
Ans: In case there is a dispute regarding the applicability of the Act or the quantum of money
to be deducted etc. the authority to decide are the
i) Central Provident Fund Commissioner,
ii) any Additional Provident Fund Commissioner,
iii) any Additional Central Provident Fund Commissioner
iv) any Deputy Provident Fund Commissioner
v) any Regional Provident Fund Commissioner or
vi) any Assistant Provident Fund Commissioner
Q28) What in case there are workers involved as Contract labour?

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Ans: It is the responsibility of the Contractor to deduct the PF and submit a statement to the
Principal Employer in the prescribed format by 7th of every month. The Company becomes
the Principal Employer would be responsible for the PF deduction of the workers employed on
contract basis.
Q29) Are the persons employed by or through a contractor covered under the Scheme?
Ans: Persons employed by or through a contractor are included in the definition of " employee
" under the
Employee's Provident Finds Act, 1952, and as such, they are covered under the Scheme.
Q30) In case the Contractor fails to deduct and submit the PF amount from the contract
workers
then what is to be done?
Ans: The Company being the Principal employer is responsible for the PF to be
deducted from the Contract workers as well. In case the Contractors fails to deduct
and submit the PF dues then the Company has to pay the amount and can later on
recover the amount from the Contractor.
Q31) Could the employer be punished in case the remittance of contribution by him is
delayed
in a Bank or post office?
Ans: Employer cannot be punished or penalized in case there is a delay in the remittance of
the
contribution on account of delay in Bank or post office.
Q32) What happens in case there is a salary revision and a raise in the basic salary of
the employee
and arrears need to be paid, Do we need to deduct PF from the arrears as well?
Ans: Arrears are considered to be emoluments earned by the employee and PF is to be

deducted from such arrears.
Q33) Is it possible for an employee to contribute at a higher rate of interest than 12 %?
Ans: Yes, if an employee desires to contribute an amount at a higher rate of interest than 12
% of basic salary then they can do so but it does not become obligatory for the employer to
pay anything above than 12 %. This is called voluntary contribution and a Joint Declaration
Form needs to be filled up where the employer and the employee both have to give a
declaration as to the rate at which PF would be deducted.
Q34) What is the interest on the PF accumulations?
Ans: Compound interest as declared by Central Govt. is paid on the amount standing to the
credit of an
employee as on 1st April every year.
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SPECIAL PROVISION FOR INTERNATIONAL WORKERS W.E.F 11th NOV
2008
1) Who is an International worker?

An International worker may be an Indian worker or a foreign national.
This means an Indian worker who has divided his/her career between India and another country
with whom India has entered into a bilateral Social Security agreement or a foreign national
working in India. (Para 2 ff)
2) Who is an ‘excluded employee’ under these provisions?

A ‘detached worker’ posted in an establishment in India but contributing to the social security
programme of the source country in terms of the bilateral Social Security agreement signed
between that country and India shall be an ‘excluded employee’ under these provisions. (Para 2
f)
3) Who is a ‘detached worker’?

An International worker, being not an Indian employee, contributing to the social security
programme of the source country in terms of the bilateral Social Security agreement signed
between that country and India and exempt from making any contribution to the Indian system
for the period and terms as set out in such an agreement is a ‘detached worker’ for the purpose
of compliance under the Indian system. (Para 2 f)
4) What does the term ‘Indian employee’ mean?

An employee, holding or entitled to hold an Indian passport and employed by an establishment
covered under the EPF and MP Act, 1952 is an Indian employee under the Special provisions in
respect of International workers. [Para 2 ff (a)]
5) Who all shall become the members of the fund?

a) Every International worker, other than an ‘excluded employee’ - from 1st Nov.2008.
b) Every excluded employee, on ceasing the status, - from the beginning of the month following
that in which he/she losses the status. (Para 26)
6) Which category of establishments shall take cognizance of these provisions?

All such establishments covered/coverable under the Employees’ Provident Fund and
Miscellaneous Provisions Act, 1952 that employ ‘International workers’ either in India or abroad
shall take cognizance of these provisions. (Para 26)
7) Whether PF rules will apply to an employee if his salary is paid outside India?
Yes, the provisions will apply irrespective of where the salary is paid. (Para 30)
8) Whether PF will be payable only on the part of salary paid in India in case of split
payroll?
In case of split payroll the contribution shall be paid on the total salary earned by the employee.
(Para 29)
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9) ‘Monthly Pay’ for calculating contributions to be paid under the Act?
The monthly pay shall be the pay as specified under Para 29 of the EPF Scheme, 1952, which
covers:
• Basic wages (all emoluments paid or payable in cash while on duty or on leave / holiday
except Dearness allowance, House rent allowance, overtime allowance, bonus, commission or
any other similar allowance payable in respect of employment and any presents made by the
employer)
• Dearness allowance (all cash payments by whatever name called paid to an employee on
account of a rise in the cost of living)
• Retaining allowance
• Cash value of any food concession
10) What portion of salary on which PF would be payable in case an individual has
multiple country responsibilities and spends some part of his time outside India?
Contribution is payable on the total salary payable on account of the employment of the
employee employed for wages by establishment covered in India even for responsibility outside
India also.[Section 2 (b)]
11) Is there a minimum period of days of stay in India, which the employee can work
in India without triggering PF compliance?
No, there is no any minimum period of employment in India is required to be eligible for
membership. Every eligible International worker has to be enrolled from the first date of his
employment in India.
12) What constitutes the Pensionable service?

The service for which contributions are received and/or receivable as also the period of service
rendered and considered as eligible under a Social Security Agreement that may cover an
International worker. (Para 10 of EPS)
13) How is Pensionable service determined?

While the period of service for which contributions are received under the EPS will decide the
quantum of pension admissible, the period of service rendered under a relevant social security
agreement shall be taken into account only for the purpose mentioned under such agreement.
(Para 10 of EPS)
14) Is there a cap on the salary up to which the contribution has to be made by both
the employer as well as an employee?
No, there is no cap on the salary up to which the contribution has to be made by both the
employer as well as an employee.
15) Is there a cap on the salary up to which the employer’s share of contribution has
to be diverted to EPS?
Yes, the cap on the salary up to which the employer’s share of contribution has to be diverted to
EPS remains at Rs.6500. (Para 3 of EPS)
16) What is a social security agreement (SSA)?

15
A social security agreement is a bi-lateral instrument to protect the interests of the workers in
the host country. It being a reciprocal arrangement generally provides for avoidance of no
coverage or double coverage and equality of treatment with the host country workers.
17) What are the provisions covered in a social security agreement?

Generally a social security agreement covers 3 provisions. They are:
a) Detachment
Applies to employees sent on posting in the host country, provided he/she is complying under
the social security system of the home country.
b) Exportability of Pension
Provision for payment of pension benefits to the beneficiary choosing to reside in the territory of
the home country directly with out any reduction as also to a beneficiary choosing to reside in
the territory of a third country.
c) Provision for totalisation of Benefits

The period of service rendered by an employee in the host country to be counted for the
“eligibility” purpose and the payment may be restricted to the length of service, on pro-rata
basis.
18) What is the status of the SSAs?

As of today, Social security agreements have been signed with Belgium, France and Germany.
But the date of entry into force is yet to be notified. Negotiations are at various stages with The
Netherlands, Czech Republic, Hungary, Norway, Switzerland, Sweden, Luxembourg, USA and
Australia. Government level talks are on with many other countries where sizable numbers of
Indian workers are employed. Although not a formal agreement, there is a reciprocal
arrangement between India and Korea to settle the claims of the employees on completion of
employment in the host country
19) Should the eligible employees from Belgium, France and Germany contribute
under the Special provisions till such time the ‘date of effect’ is notified?
Yes, the International workers from Belgium, France and Germany shall be enrolled as members
of EPF till such time the ‘date of effect’ is notified by the Government of India and after such
workers obtaining a ‘detachment certificate’ from the appropriate authority in their countries,
respectively. Till the ‘date of effect’ is notified no Indian employee posted to these countries and
none of the employees from these countries working in India shall be eligible for detachment
status.
20) Indian employees working abroad and contributing to Social Security Scheme of
that country with whom India has social security agreement. Should they be covered
for PF in India or should be treated as excluded employee?
As of today the date of effect of the SSAs is yet to be notified. Therefore, a posted employee,
whose name is retained in the pay bill maintained by the employer in India, shall be covered
under EPF. If an Indian employee is directly employed by a local employer abroad, such an
employee shall be covered by the host country legislations.
21) Could the term "Indian employee" mean any foreign national who is directly
employed by an Indian establishment i.e. a person who is in India not under a
secondment arrangement or any deputation from a foreign employer but hired
directly by the Indian establishment under local terms and service conditions?
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The term Indian employee shall mean only such of those employees as explained under Q.No 4.
No foreign national can be termed an Indian employee.
22) Whether a Third Country(C) National domiciled in a country (B) with which India
(A) has a social security agreement is eligible for benefit under the social security
agreement between India and that country?
Normally social security agreements are signed to cover the ‘Nationals’ of the respective
countries. Therefore, the above employee may be eligible for the benefit provided that the Third
country (C) has signed an enabling agreement with both India (A) as well as the Second country
(B).
23) Indian employees working abroad and contributing to Social Security Scheme of
that country with whom India DOES NOT have social security agreement. Should they
be covered for PF in India or should be treated as excluded employee?
A posted employee, who is drawing wages from the employer in India, shall be covered under
EPF. If an Indian employee is directly employed by a local employer abroad, such an employee
shall be covered by the host country legislations.
24) Foreign nationals who are employed in India and being paid in foreign currency,
whether to be covered or not?
Yes, International workers drawing salary in any currency and in any manner are to be covered.
(Section 2 f).
25) Foreigners who are employed directly as an employee by an Indian establishment
abroad to be covered or not?
The local employees of an Indian establishment engaged abroad shall be covered by the local
legislations
26) Considering that in most countries issuance of work permit to an individual is a
trigger for social security compliance, whether the purpose and type of visa i.e.
business/ employment will be a determinant for a person to be considered as an
International Worker?
The purpose of the visit of an individual is the main determinant for social security compliance.
The type of visa may help in determining the purpose of visit. For example - a foreign national
coming in to India under an employment visa is working in India.
27) Whether benefit of reciprocity can be extended to an International Worker if his

home country provides for exemption from social security to Indian nationals going
to work in that country under its domestic law even though there is no social security
agreement with India?
In the absence of a formal agreement the benefit of reciprocity is available at the time of
withdrawal of the pension claim and not at the time of coverage. (Para 14 of EPS)
28) Where will the survivor benefits be delivered in case of a covered employee
holding a passport, being other than an Indian passport, issued by a country with
which India is not having a SSA?
In the absence of a SSA, the survivor benefits such as widow/widower pension, children /orphan
17
pension, nominee/parent pension, etc. as the case may be, shall be payable to a bank account
of the eligible beneficiary in India. (Para 14 of EPS)
29) What is the criterion for receiving the withdrawal benefit for the services of less
than 10 years under EPS, 1995?
In respect of employees hailing from the countries with which India has signed a SSA, the
withdrawal benefit shall be paid or accounted for as per the provisions of the SSA. In all other
cases, it shall be guided by the principle of reciprocity with reference to the entitlement
available to Indian employees in the other country. (Para 14 of EPS)
30) How long an Indian employee retains the status of “International worker”?
An Indian employee attains the status of “International worker” only on account of his
employment in a country with which India has signed a SSA. He shall remain in that status till
the time he avails the benefits under a social security programme covered under that SSA.
(Para 2 f)
31) Under what condition the contributions received in the PF account are payable
along with interest?
The full amount standing to the credit of a member’s account is payable if any one of the
circumstances mentioned under Para 69 of the EPF Scheme, 1952 is fulfilled
32) Is there a cap on the salary up to which the contribution has to be made to EDLI
Scheme by both the employer?
Yes, the cap on the salary up to which contribution has to be made to EDLI
Scheme remains unchanged at Rs.6500.
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THE PAYMENT OF BONUS ACT-1965
Q1) What are the objects of the Act?
Ans: This act ensures that employees have a statutory right to share the profits of the
employer.
Q2) What is the minimum bonus prescribed by the Act?
Ans: The minimum bonus prescribed by the Act is 8.33 % of annual basic salary, which is
equivalent to one months basic salary or Rs. 100 whichever is higher.
Q3) What is the maximum bonus payable under the Act?
Ans: The maximum bonus payable under the Act is two and a half months basic salary or 20 %
of annual basic salary.
Q4) What is the applicability of the act?
Ans: This Act is applicable to all establishments employing 20 or more persons.
Q5) In case after registering the establishment at any point in time, the number of
employees
working in it becomes less than 20 then will the Act apply?
Ans: Any establishment which has been covered under the Act once shall continue to be
governed by the Act even if the number of persons employed therein at any time falls below 20.
Q6) Who are entitled to be paid bonus?
Ans: Any employee who is drawing a salary or wages up to Rs. 10,000 per month and who has
worked for a minimum period of 30 days in a year is entitled to bonus.
Q7) Is a casual worker (whose job is not throughout the year but only for a few months)
entitled to
bonus?
Ans: The only criteria for being entitled to bonus is to complete minimum period of 30 days of
work in a year to be eligible for bonus.
Q8) For the purpose of this Act, what does the term “wages” include?
Ans: For the purpose of this Act wages means Basic salary + D. A. and does not include
allowances, overtime salary, HRA, bonus, gratuity, employer's contribution to PF.
Q9) What is the time limit for an employer to pay the bonus?
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Ans: Bonus must be paid within a period of 8 months from the close of the accounting year. If
an employee does not get the bonus due to him, he can apply to the Government.
Q10) Why has the Act specified the maximum and minimum limit of the bonus?
Ans: The principle behind fixing the maximum and minimum limit of the bonus is that the rate
of bonus should not fluctuate from year to year.
Q11) Can an employee hold or deduct the bonus payable to an employee.
Ans: Only in case the employee is found guilty of misconduct causing financial loss to the
employer, then the employer can deduct the or hold the employee's bonus.
Q12) In case there is a dispute regarding the payment of bonus then when is the bonus
payable?
Ans: Bonus is payable to the employee within 30 days of settlement of such dispute.
Q13) Can the employer have an agreement with the employee for a different rate of
payment of
bonus?
Ans: Yes, there can be an agreement between the employer and the employee for a different
rate of payment of bonus but then they need to follow the Act,i.e., Maximum of 20 % of basic
& minimum of 8.33 % of basic salary.
Q14) Which establishments are exempt from paying bonus to its employees?
Ans: Any establishment which is newly set up is exempted from paying bonus to its employees
in the first five years. If however the employer gains profits in the first five years then he has
to pay bonus to its employees.
Q15) In case there is a change in the ownership of the establishment then is the
establishment exempt from paying bonus?
Ans: No, even if the ownership of the establishment has changed it will not be considered as a
newly set up establishment and has to pay bonus.
Q16) When is the employee disqualified to receive bonus?
Ans: Any employee who is dismissed from the services on account of fraud, riotous or violent
behaviour, theft, misappropriation, or causes damage to company properties looses his claim
on bonus.
Q17) In case the employee is entitled to bonus of last year but this year he/ she is
dismissed on
account of theft, fraud and dishonesty then can the employer hold the employee's
previous
bonus?
Ans: In such a case the employer cannot hold the due bonus of the previous year.
Q18) If the employee is laid off and paid lay off wages then is the employee entitled to
bonus for
the period he/ she is laid off?
Ans: In case of lay off the employee receives lay off wages then these wages would be
considered as wages in the purview of this Act and the employer needs to pay bonus.
Q 19) In case the employer has a lot of branches/ departments which are spread over
many places
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or states then will it considered as separate establishments or one single
establishment?
Ans: In such cases the establishment would be considered as one single establishment.unless
a separate balance sheet and profit or loss account is prepared.
THE MATERNITY BENEFIT ACT-1961

Q1) What is the purpose of this Act?
Ans: The purpose of this Act is to regulate the employment of women workers for certain
period before and after childbirth.
Q2) To which establishments is the Act applicable?
Ans: This Act is applicable to every establishment employing 10 or more persons.
Q3) To which employees is the Act applicable?
Ans: This act is applicable to female employees who are employed whether on regular
employment or on casual basis.
Q4) Are daily wages employees entitled to maternity benefit under this Act?
Ans: Female employees employed as casual employees/ daily rated employees are also
entitled to maternity benefit under this Act.
Q5) To whom is the maternity benefit payable in case of death of an employee?
Ans: In case of death of an employee maternity benefit is payable to the person nominated by
or the legal heir of the woman.
Q6) Can a woman be terminated when she is on maternity leave?
Ans: A woman cannot be terminated when she is on maternity leave.
Q7) What is the period for which a woman is entitled to maternity benefit?
Ans: A woman is entitled to maternity benefit of 12 weeks, six weeks before and six weeks
after the due date of delivery.
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Q8) What is the eligibility of an employee to claim maternity benefit?
Ans: Any woman who has worked for more than 80 days during the preceeding 12 months of
the date of delivery.
Q9) What is the rate at which the woman is entitled to maternity benefit?
Ans: Rate of Maternity benefit is the rate of average daily wage for the period she has worked.
Q10) What is meant by “Average Daily Wages”?

Ans: Average daily wages means the average of the women wages payable to her for the days
on which she has worked during the period of 3 calendar months immediately preceeding the
date from which she absents herself.
Q11) What is the maternity bonus a woman is entitled to?
Ans: A woman is entitled to maternity bonus of 1000 Rupees in case no pre-natal or postnatal
care is provided by the employer.
Q12) Is medical bonus paid over and above the maternity benefit?
Ans: Yes, Medical bonus of Rs. 1000 is provided over and above the maternity benefit.
Q13) Is a woman entitled to any leave in case of illness arising out of pregnancy
delivery?
Ans: A woman is entitled to leave with wages up to maximum one month for illness arising out
of pregnancy, delivery, pre-mature birth or miscarriage..
Q14) Is a woman entitled to leave with wages for miscarriage?
Ans: In case of miscarriage a woman is entitled to leave with wages at the rate of maternity
benefit for a period of 6 weeks immediately following the date of miscarriage.
Q15) What is the entitlement of a woman in case of MTP (Medical Termination of

Pregnancy)?
Ans: In case of MTP (Medical Termination of Pregnancy) a woman is entitled to leave with
wages at the rate of maternity benefit for a period of 6 weeks immediately following the date
of MTP.
Q16) Is it necessary for a woman to work for 80 days in the preceeding 12 months to
claim benefit
in case of MTP or miscarriage?
Ans: No, there is no such condition laid out for a woman to claim benefit in case of MTP or
miscarriage.
Q17) In brief, what are the obligations of the employer?

Ans: The employer is required to:
1.Exhibit an abstract of the Act in the establishments
2.Maintain a muster roll
3.Submit annual returns
Q18) What is the leave entitlement for tubectomy operation?
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Ans: In case of tubectomy operation, a woman is entitled to maternity benefit for a period of
two weeks immediately following the day of her operation.
THE CONTRACT LABOUR REGULATION & ABOLITION ACT-1970

Q1) What is the policy governing this Act?
Ans: The policy of this Act is to prohibit the employment of contract labour in certain
employments & govern the working conditions and provide health and welfare facilities to the
Contract Labour.
Q2) To whom is this Act applicable?
Ans: This Act is applicable to every establishment where 20 or more workmen are employed
as Contract labour or every contractor employing 20 or more workmen. In certain States it is
applicable to 10 or more workmen. (State Amendments).
Q3) Are there any establishments to which this Act is not applicable?
Ans: This Act is not applicable to establishments performing work only of an intermittent or
casual nature.
Q4) What is the primary duty of the contractor?
Ans: The primary duty of the Contractor is to obtain a license as per the Act
Q5) What is the primary duty of the principal employer?
Ans: The principal employer needs to get his establishment registered under the Act.
Q6) What is the procedure for obtaining a license under the Act?
Ans: The contractor needs to apply in the prescribed format and pay the necessary fees and
security deposit to the Licensing Officer under the Act. The security deposit is refundable.
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Q7 What about the validity of the license?
Ans: The license is valid for a year and it needs to be renewed every year. The application for
license should be made within 60 days of the date of expiry of the license.
Q 8 What in case the registration certificate or the license is lost?
Ans: In case of loss of the registration certificate or the license a duplicate should be obtained
from the licensing officer on payment of prescribed fees.
Q9 What in case the employer doesn’t take the certificate of Registration ?
Ans: In case the employer has not obtained the certificate of Registration then he would be
considered as a Principal employer for all the worker employed as Contract labour.
Q10 What is the liability for the Principal employer in case the contractor fails to provide
the salary
and welfare facilities as per the Act?
Ans: The Principal Employer would be responsible for the payment of wages to the Contract
Labour and inurn the Principal Employer can recover such amount from the payment due to
the Contractor.
Q11 As per the Act what are the facilities, which are to be provided to the contract
labour & by
whom?
Ans: A contractor is required to provide canteens, rest room, latrines, urinals, drinking waters,
washing facilities, and first aid boxes to the contract labour & in case the contractor fails to
provide these facilities it is the responsibility of the principal employer to provide the same.
Q12. What are the powers of the inspectors appointed under the act?
Ans: An inspector can enter any premise where contract labour is employed and examine any
register, record or notices. He can examine any workman employed in the premise and ask
them about their work and payment. He can also seize or take copies of any register, record of
ages or notices.
Q13. What kind of returns need to be submitted by the principal employer?

Ans: The principal employer needs to send annual returns in the prescribed form to the
registering officer not later than 15th Feb of every year.
Q14. What kind of returns need to be submitted by the contractor?
Ans: Every contractor is required to send to the licensing officer half yearly return in the
prescribed form not later than 31st July & 31Jan of every year.
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THE EMPLOYEE STATE INSURANCE ACT, 1948
1. What is E.S.I. Scheme?

In addition to necessities of food, clothing, housing etc., man needs security in times of
physical and economic distress consequent upon sickness, disablement etc. The Employees’
State Insurance Scheme is an integrated measure of Social Insurance embodied in the
Employees’ State Insurance Act and is designed to accomplish the task of protecting
‘employees’ as defined in the Employees’ State Insurance Act against the hazards of sickness,
maternity, disablement and death due to employment injury and to provide medical care to
insured persons and their families. The Scheme covers employees of non-seasonal power-
using factories employing 10 or more persons. There is, however, a built-in provision for its
extension to other establishments or classes of establishments, industrial, commercial,
agricultural or otherwise. The Scheme has been progressively extended to cover employees in
non-power using factories employing 20 or more persons and to commercial establishments.
2. How does the Employees’ State Insurance Scheme assist you?

The dependence of an individual on cash income is a characteristic feature of modern
economy. An interruption of money income even for a small period is, therefore, a hardship; a
prolonged loss of income is indeed a catastrophe. By coming forward to provide health
protection and income maintenance in a series of oft-experienced contingencies like sickness,
maternity, disablement and death due to employment injury, the Employees’ State Insurance
Scheme tends to ameliorate your economic anxiety and to be a friend in need and distress.
3. Why is it called a Health Insurance Scheme?
25
The Employees’ State Insurance Scheme performs a dual role; by providing assistance in kind
(medical care) it tries to restore your health and working capacity and by assistance in cash
(cash benefit) it tries to sustain you when your income is interrupted. With a better and facile
health protection, greater vitality, and assurance of income-maintenance in times of need, it
makes you every inch a better, a healthier, secure worker and therefore, a happier man. The
assistance comes to you not as an act of benevolence but in virtue of an acquired right.
4. Who administers the Employees’ State Insurance Scheme?

The Employees’ State Insurance Scheme is administered by a corporate body called the
Employees’ State Insurance Corporation (ESIC), which has members representing Employees,
Employers, the Central Government, State Governments, Medical Profession and the
Parliament. The Director General is the Chief Executive Officer of the Corporation and is also
an ex-officio member of the Corporation. The other bodies at the national level are the
Standing Committee (a representative body of the Corporation) and the Medical Benefit
Council, a specialized body which advises the Corporation on administration of Medical
Benefit. At the Regional and Local levels, the Regional Boards and Local Committees have
been constituted. There is, thus, an association of interests and interest groups at all levels.
ESIC is the trustee of the interests of the insured persons. It discharges its obligations and
duties through a network of Regional Offices and Local Offices, Hospitals and Dispensaries
spread over the entire country.
5. Whom does the Scheme protect?

The Scheme protects all “employees” engaged on a monthly remuneration not exceeding Rs.
10,000/- in a factory/establishment to which the Act applies. Persons employed for wages on
any work connected with the administration of the factory or establishment or any part,
department or branch thereof or purchase of raw materials, or distribution or sale of the
product of a factory or establishment are also covered. Mines, Railway Running Sheds, Naval,
Military and Air Force Workshops and specified seasonal factories are excluded. The scheme
also provides full medical cover to the dependants of insured persons. In the event of death of
an insured person due to employment injury dependants become eligible to cash benefit.
6. Where do Employees’ State Insurance Funds come from?

The Employees’ State Insurance Funds are primarily built out of employers contribution and
employees contribution payable monthly as a fixed percentage of wages.
7. How are the employees registered under the Scheme?

Simultaneously with his/her entry into employment in a covered factory or establishment, an
employee is required to fill in a Declaration Form. The employee is then allotted a Registration
Number, which distinguishes and identifies the person for the purposes of the Scheme. A
person is registered once and once only upon his entry in insurable employment.
8. What is an Identity Card?

On registration every insured person is provided with a “Temporary Identification Certificate”
which is valid ordinarily for a period of 3 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 signatures/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 you lose your Identity Card before it has run its normal life, a duplicate card is issued on
payment as prescribed.
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9. What are the rates of contribution?
Contributions payable in respect of an employee comprise of employer’s contribution and
employee’s contribution prescribed in Schedule I of the Act.
An employee covered under the scheme has to contribute 1.75% of the wages whereas; an
employer contributes 4.75% of the wages payable to an employee. The total contribution in
respect of an employee thus works out to 6.50% of the wages payable.
10. Who is exempted from payment of contribution?

Employees earning less than Rs 40/- a day are exempted from payment of contribution. The
employers share of contribution is, however, payable.
11. How are the Contributions collected?

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 contributions from
employees’ wages relating to the period in respect of which the Contribution is payable.
12. What are ‘Contribution Periods’ and ‘Benefit Periods?

Workers, covered under the ESI Act, are required to pay contribution towards the scheme on a
monthly basis. A contribution period means a six-month time span from 1st April to 30th
September and 1st October to 31st March. Thus, in a financial year there are two contribution
periods of six months duration.
Cash benefits under the scheme are generally linked with contributions paid. The benefit
period starts three months after the closure of a contribution period. The two types of periods
are illucidated below: –
Contribution Period Corresponding Benefit

period
1st April to 30th September 1st January to 30th June of
the
Following Year
1st October to 31st March 1st July to 31st

December
13. What is a Local Office?
A network of Local Offices has been established by the Corporation in all implemented areas
to disburse all claims for sickness, maternity, disablement and dependents’ benefit. The Local
Office also answers all doubts and enquiries and assists otherwise in filling in claim forms and
completing other action necessary in connection with the settlement of claims. These offices
also interact with the employers of the area. The Local Offices are managed by a Manager and
work under the direction and control of the Regional Offices.
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14. What does ‘Sickness Benefit’ mean?
Sickness signifies a state of health necessitating medical treatment and attendance and
abstention from work on medical grounds. Financial support extended by the Corporation is
such a contingency is called Sickness Benefit.
15. What are the Contributory Conditions?
The contribution condition required to be fulfilled for admissibility of sickness benefit during
any benefit period is that contributions should have been paid in respect of an insured person
in the corresponding contribution period for not less than 78 days.
16. How much is the Standard Benefit Rate?
The daily rate of Sickness Benefit during any benefit period is the “standard benefit rate” this
rate corresponds to the average daily wage of an insured person during the corresponding
contribution period and is roughly half of the daily wage rate. Benefit is paid for Sundays also.
28 wage groups have been evolved for working out the daily rate of Standard Sickness
Benefit. Standard Benefit rates for 28 wage groups are shown in Annexure ‘A’.
17. What is the duration of Sickness Benefit?
Sickness benefit is payable for a maximum period of 91 days in any two consecutive benefit
periods. Benefit is not paid for an initial waiting period of 2 days unless the insured person is
certified sick within 15 days of the last spell in which Sickness Benefit was paid.
18. What is Extended Sickness Benefit?

Extended Sickness Benefit is a Cash Benefit paid for prolonged illness due to any of the 34
specified diseases as mentioned below.
Diseases
1. Tuberculosis
2. Leprosy
3. Chronic Emphysema
4. Bronchiectasis
5. Interstitial Lung disease
6. AIDS
7. Malignant Diseases
8. Diabetes Mellitus-with proliferate retinopathy/diabetic foot/ nephropathy.
9. Monoplegia
10. Hemiplegia
11. Paraplegia
12. Hemiparesis
13. Intracranial space occupying lesion
14. Spinal Cord Compression
15. Parkinson’s disease
16. Myasthenia Gravis/Neuromuscular Dystrophies
17. Immature Cataract with vision 6/60 or less
18. Detachment of Retina
19. Glaucoma
20. Coronary Artery Diseases
21. Congestive Heart Failure-Left, Right
22. Cardiac valvular Diseases with failure/complications
23. Cardiomyopathies
24. Heat disease with surgical intervention along with complications
25. Chronic Obstructive Long diseases (COPD) with congestive heart failure (Cor Pulmonale)
26. Cirrhosis of liver with ascitis/chronic active hepatitis (“CAH”)
27. Dislocation of vertebra/prolapse of intervertebral disc
28. Non union or delayed union of fracture
29. Post Traumatic surgical amputation of lower extremity
28
30. Compound fracture with chronic osteomyelitis
31. (a) Schizophrenia
(b)Endogenous depression
(c)Maniac Depressive Psychosis (MDP)
(d)Dementia
32.More than 20% Burns with infection/complication
33.Chronic Renal Failure
34.Reynaud’s disease/Burger’s disease.
In addition, extended sickness benefit may also be sanctioned by the prescribed authority,
in case of any rare disease or special circumstances on the recommendation of the specified
authority.
Except in case of disability from administration of drugs/injections, the insured person should
have been in continuous employment for a period of 2 years and should have contributed for
at least 156 days in 4 preceding contribution periods.
20. How much is the Benefit rate?
The daily rate of Extended Sickness Benefit is 40% more than the Standard Sickness Benefit
rate admissible.
21. How long is the Benefit available?
After exhausting Sickness Benefit payable for 91 days the ESB is payable upto a further period
of 124/309 days that can be extended upto 2 years in special circumstances. Thus, together
with the Sickness Benefit for 91 days, it puts a claimant on benefit for an aggregate period
400 days for all specified diseases and 2 years in chronic suitable cases on recommendation
of competent authority.
22. What is Enhanced Sickness Benefit?
Enhanced Sickness Benefit is cash benefit for the insured persons undergoing sterilization
operation of vasectomy/tubectomy for family planning.
22a.What are the contributory conditions?
The contributory conditions are the same as for claiming sickness benefit.
22b.How much is the benefit rate?
The daily rate of this benefit is double the standard benefit rate. Say, not less than the daily
wage.
22c.How Long is the benefit available?
The benefit is available upto 7 days for vasectomy and upto 14 days for tubectomy
operations. This period can however be extended in cases of postoperative complications or
sickness arising out of these sterilization operations. Its duration is not counted towards the
total number of 91 days for which the sickness benefit is available during any two consecutive
benefit periods.
22d. How to claim Sickness Benefit?
A claim for Sickness Benefit should be supported by a Medical Certificate issued by an

Insurance Medical Officer/Insurance Medical Practitioner in the appropriate Form. Medical
Certificates are issued at intervals of not more than seven days, except in cases of prolonged
sickness, where Special Intermediate Certificates may be issued at longer intervals not
exceeding 4 weeks. On the back of each certificate, except the Special Intermediate
Certificate, a Claim Form is printed. The Claim Form is essentially a declaration in regard to
29
abstention of the claimant from work during the period of claim. Separate Claim Forms are
also available.
The Claim Form should bear signatures/thumb impression of the claimant and should be
submitted to the Local Office personally, by post, through a messenger or by deposit in
certificate boxes, wherever provided. All claims should preferably to submitted to the Local
Office within three days. The Receptionist at the Local Office renders all assistance in filling in
the claim on your behalf.
23. What is ‘Disablement’?
Disablement is a condition resulting from employment injury, which may be: –

(a)Temporary i.e. rendering an insured person incapable of work temporarily and
necessitating medical treatment;
(b) Permanent partial i.e. reducing the earning capacity of the insured person generally for
every
employment;
(c) Permanent total i.e. totally depriving the insured person of the power to do all work.
24. What constitutes an “Employment Injury?”
Employment injury means a personal injury caused to an employee by an accident or

occupational disease arising out of and in course of his employment in a factory or
establishment covered under the Employees’ State Insurance Act.
The law relating to Employment injury has been liberalized. Now, an accident arising in the
course of employment is presumed also to have arisen out of his employment if there is no
evidence to the contrary. Further, an accident brought about by willful disobedience,
negligence or breach of regulations etc. or an accident happening while traveling in a
transport provided by the employer or while meeting an emergency is accepted subject to
certain conditions, to have arisen in the course of and out of employment. Injuries suffered
while under the influence of drinks and drugs take away the right of the employee to this
benefit.
Roadside accident caused while commuting between place of residence and workplace is also
treated as notional extension of employment for purpose of death or disablement benefit.
25. What are ‘Occupational Diseases’?
Occupational Diseases are such diseases as are susceptible of being traced back to their
occupational origin. These are specified under Schedule III of the Employees’ State Insurance
Act, which enumerates the compensable Occupational Diseases and the corresponding
industrial processes involving exposure to the diseases are thus recognized without any
further evidence.
26. What are the Benefits granted?
Temporary Disablement Benefit is paid periodically in arrears as the evidence of incapacity

(medical certificate) is produced. Permanent total disablement and permanent partial
disablement benefits are paid in the form of pensions. Current employment for wages or
engagement in any gainful activities is no bar to payment of permanent disablement benefits.
An insured person suffering from an occupationed disease is also entitled to full medical care.
27. How much is the Benefit Rate?
The daily benefit rate for permanent total disablement and temporary disablement is 40%
more than the Standard Sickness Benefit rate and is roughly equivalent to about 70% of the
30
wage rate. For permanent partial disablement, the rate of benefit is proportionate to the
percentage of loss of earning capacity. The benefit is paid for Sundays also.
There are no qualifying conditions as to the length of employment or the number of

contributions paid. Protection accrues from the very moment of entry into insurable
employment.
29. What is the duration of Benefit?
Temporary Disablement Benefit is paid as long as disablement lasts. There is a waiting period
of 3 days (excluding the day of accident), but if incapacity exceeds this period, benefit is paid
from the very first day. The permanent disablement benefit is paid for the life-time of the
beneficiary.
30. How is Permanent Disablement assessed?
There is indeed no way of adequately compensating a permanently disabled employee and

yet some method of determining whether an employment injury has resulted in permanent
disablement and of assessing the extent of permanent damage caused by that employment
injury has to be adopted for the purpose of determining the scale of compensation for the loss
of earnings. This is done by evaluating loss of earning capacity with reference to general
disability for all work. The evaluation is done by a Medical Board whose decision can be
appealed against to a Medical Appeal Tribunal presided over by a judicial officer, with a
further right of appeal to Employees’ Insurance Court or directly to Employees’ Insurance
Court. Pending an appeal, payment for permanent loss of earning capacity as recommended
by the Medical Board is made, subject to adjustment later. Loss of wages and expenditure on
conveyance occasioned by attendance before the Medical Board are compensated by the
Corporation in accordance with rates framed for the purpose.
Where the assessment of loss of earning capacity by the Medical Board is not of a final
character, the beneficiary is required to appear again before the Medical Board for a review of
the assessment.
31. Can the decisions of Medical Board or of Medical Appeal Tribunal be reviewed?
Yes. If the Medial Board or the Medical Appeal Tribunal is satisfied by fresh evidence that a
decision was given because of non-disclosure or misrepresentation of a material fact, it can
review its earlier decision at any time. A Medical Board can also review its earlier assessment
of extent of disablement, if it is satisfied that there has been substantial and unforeseen
aggravation of the results of the relevant injury and substantial injustice would be done by not
reviewing it. Such review, however, cannot be made earlier than 5 years or in the case of the
provisional assessment, earlier than 6 months of the date of assessment to be reviewed.
32. Is lump sum Benefit allowed in place of Pension?
Yes. At the option of the beneficiary, permanent disablement pension, where the daily rate
payable is not significant, can be commuted for a lump sum payment subject to the fulfillment
of the following two conditions: –
(i) That the permanent disablement has been assessed as final, and
31
(ii) The daily rate of permanent disablement does not exceed Rs 5/- and the total commuted
value does
not exceed Rs 30,000/- (effective from April–03).
33. How to claim ‘Disablement Benefit’?
(a) Temporary Disablement:

(i) Notice of the injury should be given either orally or in writing personally or through an agent,
to the employer/foreman/duty supervisor or particulars of the injury should be entered in the
Accident Book kept in the factory, personally or through an agent.
(ii) A medical certificate of incapacity should be obtained from the Insurance Medical
Officer/Insurance Medical Practitioner.
(iii) The claim form printed on the back of the medical certificate should be filled in and
submitted promptly to Local Office along with the medical certificate.
(iv) A final certificate should be obtained from the Insurance Medical Officer/Insurance Medical
Practitioner and submitted to the Local Office before resumption of duty.
(b) Permanent Disablement:
(i) If suffering from permanent effects of employment injury, the insured person should make
an application to the Regional Office of the Corporation for reference of his case to the Medical
Board (reference to the Medical Board is made otherwise also by the Regional Office).
(ii) Where loss of earning capacity has been assessed and communicated to the insured
person, he should submit a claim in the appropriate form to the Local Office.
(iii) After the claim has been admitted, the beneficiary should submit at six-monthly intervals
(with the claim for June and December every year) a life certificate in appropriate form duly
attested by the prescribed authority.
34. Is there any provision for physical rehabilitation?
Yes. Insured Persons who suffer physical disablement due to employment injury are provided
artificial appliances or other physical aids such as wheel chairs, crutches, dentures and
spectacles etc.
35. What about vocational rehabilitation?
The Corporation at its cost arranges for the vocational rehabilitation of disabled insured
persons provided the disability has been assessed at above 40 percent and the beneficiary is
not over 45 years of age. The training is provided at vocational rehabilitation centers run by
the Govt. of India etc. The fee, travelling expenses etc are borne by the Corporation.
36. What is ‘Dependents’ Benefit’?
Dependents Benefit is a monthly pension payable to the eligible dependents of an insured

person who dies as a result of an Employment Injury or occupational disease.
37. Who are the Beneficiaries and how long is the Benefit available?
Dependants entitled to the benefit could be: –

(a) Widow/Widows during life or until remarriage:
(b) Legitimate or adopted son until age 18 or if legitimate son is infirm, till infirmity lasts;
32
(c) Legitimate or adopted unmarried daughter until age 18 or until marriage, whichever is
earlier, or if infirm, till infirmity lasts and she continues to be unmarried.
In the absence of any widow or legitimate child, the benefit is payable to a parent or
grandparent for life, to any other male dependant until age 18 or to an unmarried or widowed
female dependant until age 18.
38. How much is the Benefit for each Beneficiary?
The total divisible benefit is equivalent to the temporary disablement benefit rate (roughly
70% of the wage rate). The widow/widows share 3/5th of the benefit and the legitimate or
adopted son and daughter 2/5th each of the benefit. If the total benefit so divided exceeds the
full rate, there is a proportionate reduction in the respective shares of the beneficiaries.
39. How to claim ‘Dependants’ Benefit’?
To establish title to Dependant’ Benefit, the following documents should be submitted at the
Local Office:–
(a) Claim in the appropriate form;
(b) Evidence of death being due to employment injury;
(c) Proof of relationship to the deceased supporting eligibility of the claimant as a
“dependant”;
(d) Evidence of age of the claimant(s) (certified copy of official record of birth, Baptismal
register, school records, original horoscope etc;
(e) Certificate of infirmity from Medical Referee or any other prescribed authority in case of
legitimate infirm son or legitimate or adopted unmarried infirm
daughter.
After the claim to Dependant’s Benefit has been admitted, the beneficiary should submit at
six-monthly intervals (with the claim for June and December), a declaration that he/she is alive
and has not married/remarried attained the prescribed age/continues to be infirm, as the case
may be duly attested by the prescribed authority.
40. Can Dependant’s Benefit be reviewed?
Yes. Dependant’s Benefit once awarded can be reviewed by the Corporation at any time if it is
satisfied on fresh evidence that the earlier decision was due to non-disclosure or
misrepresentation of material facts. It can also be reviewed on birth, death, marriage, re-
marriage and attainment of age 18, by a claimant. The benefit can be continued, increased,
reduced or discontinued.
41. What is Maternity Benefit?
Maternity Benefit is cash payable to an insured woman for the specified period of abstention
from work for confinement or miscarriage or for sickness arising out of pregnancy,
confinement, premature birth of child or miscarriage. “Confinement” connotes labour resulting
in the delivery of a living child or labour after 26 weeks of pregnancy whether the resultant
issue is alive or dead. “Miscarriage” means expulsion of the contents of a pregnant uterus at
any period prior to or during 26th week of pregnancy. Criminal abortion or miscarriage does
not, however, entitle to benefit.
The contribution condition is the same as for Sickness Benefit.
43. How much is the Benefit?
The daily benefit rate is double the Sickness Benefit rate and is thus roughly equivalent to the
full wages. Benefit is paid for Sundays also.
33
44. What is the duration of the Benefit?
The Benefit is paid as follows: –

(a) For confinement: –
For a total period or 12 weeks beginning not more than 6 weeks before the expected
date of child birth. If the insured woman dies during confinement or within 6 weeks thereafter,
leaving behind the living child, the benefit continues to be payable for the whole of the period.
But if the child also dead during that period, the benefit will be paid upto and including the
day of death of the child.
(b) For Miscarriage: –
For a period of 6 weeks following the date of miscarriage.
(c) For Sickness arising out of pregnancy, confinement, and premature birth of child or
miscarriage:–
For an additional period of upto four week.
In all the cases, the benefit is paid only if the insured woman does not work for remuneration
during the period for which benefit is claimed. There is no waiting period.
45. How to claim Maternity Benefit?
Where an insured woman wishes to claim Maternity Benefit after confinement or for
miscarriage, she should obtain from the Insurance Medical Officer/Insurance Medical
Practitioner, a certificate of confinement or miscarriage and submit it to her Local Office
personally or by post along with a claim for Maternity Benefit. The claim form also contains a
declaration of abstention from work.
If Benefit is desired before confinement, a Notice and Certificate of Pregnancy and a
Certificate of Expected Confinement obtained from the Insurance medical Officer/Insurance
Medical Practitioner are also required to be submitted.
For claiming Benefit in the event of death of an insured woman leaving behind a child, her
nominee and if there is no such nominee, her legal representative should submit personally or
by post to the Local Office of the deceased insured woman, a claim for the Benefit together
with a certificate of death of the insured woman.
An insured woman claiming Maternity Benefit for Sickness arising out of pregnancy,
confinement, premature birth of child or miscarriage should submit her claim in the manner as
for sickness benefit.
Where a claim to Maternity Benefit is not submitted along with prescribed certificates
referred to above, the Corporation has the discretion to accept other evidence in lieu thereof.
46. What is Medical Bonus?
Medical Bonus is lump sum payment made to an insured woman or the wife of an insured
person in case she does not avail medical facility from an ESI hospital at the time of delivery
of a child. This bonus of Rs. 250/- has been increased to Rs. 1000/- from 1st April 2003.
47. What is Medical Benefit?
Medical Benefit means medical care of insured persons and their families, wherever covered
for medical benefit.
48. What does Medical Benefit consist of?
The standard medical care consists of out-door treatment, in-patient treatment, all necessary
drugs and dressings, pathological and radiological specialist consultation and care, ante-natal
and post natal care, emergency treatment etc.
49. Where are ‘out-patient’ services provided?
34
Out-door medical care is provided at State Insurance Dispensaries or Mobile Dispensaries
manned by full-time doctors (‘Service’ system) or at the private clinics of Insurance Medical
Practitioners (‘Panel” system). The scope of medical services also includes simple antenatal
and post-natal care for women, family welfare planning services and immunization against the
common infectious diseases.
The Scheme provides at the sole cost of the Corporation, artificial limbs to insured persons
who lose their limbs due to employment injury or in certain circumstances otherwise also,
dentures, spectacles and hearing aids where the loss of teeth, impairment of eyesight or
hearing respectively is due to employment injury.
50. How and where are ‘in – patient’ Services Provided?
ESIC has a network of 141 hospitals countrywide. Majority of these hospitals are administered
by the State Govts. In – patient and diagnostic services in basic specialties are available at
these hospitals. State schemes have also tie-up arrangements with a number of Medical
colleges, major state hospitals, as well as, private hospitals for advanced treatment for
malignant diseases and complicated surgical interventions.
51. What about Preventive health care services?
ESI Scheme provides preventive health care services through the network of its dispensaries
and hospitals. These include immunization against some killer diseases, pulse polio
vaccination and family welfare services etc. The scheme also participates in all major national
preventive health service campaigns.
52. How long is Medical Benefit available?
Insured worker and the members of his family are eligible for medical care from the very first
day of the worker coming under ESI Scheme. The medical care includes primary medical care,
diagnostic services, specialist consultations and indoor medical care. Whenever the patient is
not able to travel by himself/herself, ambulance services are also provided. The I.P. or his
family members are not required to pay for any of the services.
A worker who is covered under the Scheme for the first time is eligible for medical care for a
period of three months. If he/she continues in insurable employment for three months or more
the medical care is available to him/her till the start of the first benefit period. If he/she
contributes at least for 78 days in a contribution period the eligibility is there upto the end of
the corresponding benefit period.
A worker is also eligible for extended sickness benefit when he/she is suffering from any one
of the long-term 34 diseases listed in the Act. This is admissible after the worker has been
under ESI coverage for at least 2 years during which he/she should have contributed at least
for 156 days. When these conditions are satisfied medical benefit is admissible for a maximum
period of 730 days for the I.P. and his/her family.
53. What are Funeral expenses?
This component consists of a lump sum payment towards the expenditure on the funeral of
the deceased insured person.
54. What is the amount payable?
The lump sum amount of this benefit is equal to the actual expenditure, not exceeding Rs.
3000/- towards the funeral of the deceased insured person.
55. Are there any Contribution Conditions?
No contribution condition is required for this Benefit. The only condition for admissibility of this
Benefit is that the deceased person should have been an insured person at the time of his
death. The Funeral expenses are thus payable in respect of an insured person in receipt of
Permanent Disablement Benefit even if he may not be employed at the time of his death in a
factory or establishment covered under the ESI Act.
56. To whom are the Funeral expenses payable?
The expenses are payable to the eldest surviving member of the family of the deceased
insured person. If the insured person did not have a family or if he was not living with his
35
family at the time of his death, the benefit is payable to the person who actually incurs the
expenditure on the funeral of the deceased insured person.
57. How to claim the Funeral expenses?
To claim the expenses, the claimant should submit his/her claim personally or by post to the
Local Office of the deceased insured person within three months, together with the following
documents:–
(a) Death certificate as proof of death of the insured person issued by the Insurance Medical
Officer/Insurance Medical Practitioner or such other Medical Officer of a hospital or other
institution who attended the insured person at the time of death or examined the body after
the death; (Death certificate issued by cremation/burial ground or by Municipal authorities or
certified copy of village etc. death records may also be accepted as evidence of death);
(b) A declaration of the claimant, either
(i) That he is the eldest surviving member of the family of the deceased insured person and
incurred
expenditure on the funeral of the deceased. or
(ii) In case the claimant is other than the eldest surviving member of the family, that the
deceased
insured person did not have a family or was not living with his family at the time of his
death and that
the claimant actually incurred expenditure on the funeral of the deceased insured
person. The
declaration should be countersigned by a competent authority.
58. Disqualification for benefits in certain cases:
A person who works and receives wages on any day is not entitled to sickness benefit or
maternity benefit or temporary disablement benefit in respect of that day.
A recipient of sickness benefit or temporary disablement benefit must remain under medical
treatment and obey the instruction given by his Insurance Medical Officer. He should not leave
the area of treatment without the permission of his medical officer and should present himself
for examination by the medical officer or any other person authorized by the Corporation.
59. Safeguarding the right to Benefit:
Cash benefits payable under the Employees’ State Insurance Act are not liable to
attachment or sale in execution of any court decree or order. Also, the right to receive any
benefit is not transferable or assignable.
60. Protection from Dismissal, discharge or other Punishments:
An employee is protected against dismissal, discharge, or other punishments during the

following periods: –
(1) A period of 6 months in case of a recipient of disablement benefit;
(2) A period of 6 months in case an employee is under medical treatment for sickness or
certified illness
due to pregnancy or confinement;
(3) A period of 12 months in case an employee is under medical treatment for T.B. Leprosy,
Mental,
Malignant or any of the 34 specified diseases.
61. Remittance of Cash Benefit at the cost of the Corporation:
At the option of the beneficiary, cash benefits under the Employees’ State Insurance Act are
remitted by Money Orders at the cost of the Corporation, irrespective of the amount involved.
62. Adjudication Machinery:
36
To make the right of claimants effective, every claimant has a right of raising a dispute in the
Employees’ Insurance Court. It consists of a judicial officer appointed by the State
Government. The jurisdiction of a Civil Court is barred in all such cases.
63. Repayment and recovery of Benefit payments:
If a person receives any benefit to which he is not legally entitled, he is liable to repay the
value of any such benefit to the Corporation.
65. Punishment for false statement etc.:
Any false statement or false representation made or caused to be made for the purpose of
obtaining benefit wrongfully etc. constitutes an offence under the Employees’ State Insurance
Act, punishable with imprisonment upto three months or with fine upto five hundred rupees or
both.
66. Treatment at outstation
In case an insured worker leaves his station on duty or otherwise he/she is eligible for
treatment at any ESI medical unit, subject to production of identity card and a certificate from
Employer in Form 105.
FOR BETTER AND QUICKER SERVICES
Please Remember
Identity Card is your visa to social security; protect it from loss or damage.
In case of loss of Identity Card, report the matter to your Local Office/Dispensary.
Fill in all Claim Forms properly; avoid mistakes.
Count your money before leaving Local Office cash counter.
Apply for examination by Medical Board immediately after your TDB terminates.
Follow referral procedures for treatment except in emergencies, when time factor is critical.
If you have a grievance, contact Local Office Manager/Dispensary in charge to which you are
attached for quick redressal.
Be courteous with ESI staff and expect courtesy and compassion from them always.
37
INDUSTRIAL DISPUTE ACT, 1947
1. What are Industrial Disputes?

Industrial Dispute means any dispute or differences between employers and employers or
between employers and workmen or between workmen and workmen, which is connected with
the employment or non-employment or the terms of employment or with the conditions of
labour of any person.
2. What are the different categories of Industrial Disputes?

The Second Schedule of the I.D. Act deals with matters within the jurisdiction of Labour Courts,
which fall under the category of Rights Disputes. Such disputes are as follows:
1. The propriety or legality of an order passed by an employer under the standing orders;
2. The application and interpretation of standing orders, which regulate conditions of
employment.
3. Discharge or dismissal of workmen including reinstatement of, or grant of relief to, workmen
wrongfully dismissed;
4. Withdrawal of any customary concession or privilege;
5. Illegality or otherwise of a strike or lock-out; and
6. All matters other than those specified in the Third Schedule.
The Third Schedule of the I.D. Act deals with matters within the jurisdiction of Industrial
Tribunals which could be classified as Interest Disputes. These are as follows: -
1. Wages, including the period and mode of payment;
2. Compensatory and other allowances;
3. Hours of work and rest intervals;
4. Leave with wages and holidays;
5. Bonus, profit sharing, provident fund and gratuity;
6. Shift working otherwise than in accordance with standing orders;
7. Classification by grades;
8. Rules of discipline;
9. Rationalization;
10. Retrenchment of workmen and closure of establishment; and
11. Any other matter that may be prescribed.
3. Who can raise an Industrial Dispute?

Any person who is a workman employed in an industry can raise an industrial dispute. A
workman includes any person (including an apprentice) employed in an industry to do manual,
unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward. It
excludes those employed in the Army, Navy, Air Force and in the police service, in managerial
38
or administrative capacity. Industry means any business, trade, undertaking, manufacture or
calling of employers and includes any calling, service, employment, handicraft, or industrial
occupation or avocation of workmen.
4. How to raise an Industrial Dispute?

A workman can raise a dispute directly before a Conciliation Officer in the case of discharge,
dismissal, retrenchment or any form of termination of service. In all other cases listed at 2
above, the dispute has to be raised by a Union / Management.
5. Who are Conciliation Officers and what do they do?

The Organization of the Chief Labour Commissioner (Central) acts as the primary conciliatory
agency in the Central Government for industrial disputes. There are the Regional Labour
Commissioners (Central) and Assistant Labour Commissioners (Central) who on behalf of the
Chief Labour Commissioner (Central) act as Conciliatory Officers in different parts of the
country.
The Conciliation Officer make efforts to resolve the dispute through settlement between the
workmen and the management. The duties of Conciliation Officers have been laid down under
Section 12 of the Industrial Disputes Act.
6. What happens if conciliation fails?
In case of failure of conciliation (FOC) a report is sent to Government (IR Desks in Ministry of
Labour). The Ministry of Labour after considering the FOC Report exercises the powers available
to it under Section 10 of the Industrial Disputes Act and either refers the dispute for adjudication
or refuses to do so. Details of functions of IR Desks and reasons for declining may be seen
above.
There are at present 17 Central Government Industrial Tribunals-cum-Labour Courts in different
parts of the country to whom industrial disputes could be referred for adjudication. These CGTIs-
cum-Labour Courts are at New Delhi, Mumbai (2 CGITs), Bangalore, Kolkata, Asansol, Dhanbad
(2 CGITs), Jabalpur, Chandigarh, Kanpur, Jaipur, Lucknow, Nagpur, Hyderabad, Chennai and
Bhubaneshwar. Out of these CGITs, 2 CGITs namely Mumbai-I and Kolkata have been declared
as National Industrial Tribunals.
7. What happens when the dispute is referred to Labour Court?
After the matter is referred to any of the CGIT-cum-Labour Court, the adjudication process
begins. At the end of the proceedings an Award is given by the Presiding Officer.
The Ministry of Labour under Section 17 of the I.D. Act publishes the Award in the Official
Gazette within a period of 30 days from the date of receipt of the Award.
8. How is the Award implemented?
An Award becomes enforceable on the expiry of 30 days from the date of its publication in the
Official Gazette. The Regional Labour Commissioner is the implementing authority of the
Awards.
9. What are the provisions for General Prohibition of Strikes and Lockouts?
No workman who is employed in any industrial establishment shall go on strike in breach of
contract and no employer of any such workman shall declare a lockout:
(a) During the pendency of conciliation proceedings before a Board and seven days after the
conclusion of such proceedings,
(b) During the pendency of such proceedings before a Labour Court, Tribunal or National
Tribunal and 2 months after the conclusion of such proceedings.
(c) During the pendency of arbitration proceedings before an Arbitrator and 2 months after the
conclusion of such proceedings, where a notification has been issued.
39
(d) During any period during in which a settlement or Award is in operation in respect of any of
the matters covered by the settlement of Award.
10. Does the workman have the Right to go on strike with proper notice in Public Utility
Services?
No person employed in a Public Utility Service can go on strike without giving to the employer
notice of strike;
(a) Within 6 weeks before striking.
(b) Within 14 days of giving such notice.
(c) Before the expiry of the date of strike specified in such notice.
(d) During the pendency of any conciliation proceedings before a Conciliation Officer and 7 days
after the conclusion of such proceedings.
11. Does the Employer have the right to lock out any Public Utility Service?
No employer carrying on any Public Utility service can lockout any of his workman:
(i) Without giving to them notice of lockout provided within 6 weeks before locking out.
(ii) Within 14 days of giving such notice.
(iii) Before expiry of the date of lockout specified in any such notice.
(iv) During the pendency of any conciliation proceedings before a Conciliation Officer and 7 days
after the conclusion of such proceedings.
12. What compensation will a workman get when laid off?

Whenever a workman (other than a badli workman or a casual workman) whose name is borne
on the muster rolls of an industrial establishment employing 50 or more workmen on an
average working day and who has completed not less than one year of continuous service under
an employer laid off, whether continuously or intermittently, he is to be paid by the employer
for all days during which he is so laid off, except for such weekly holidays as may intervene,
compensation which shall be equal to fifty per cent of the total of the basic wages and dearness
allowance that would have been payable to him had he not been so laid-off.
13. What are the conditions precedent to retrenchment of workmen?
No workmen employed in any industry who has been in continuous service for not less than one
year under an employer can be retrenched by that employer until:
(a) The workman has to be given one month’s notice in writing indicating the reasons for
retrenchment or the workman has to be paid in lieu of such notice, wages for the period of the
notice.
(b) The workman has to be paid, at the time of retrenchment, compensation which is equivalent
to fifteen days’ average pay (for every completed year of continuous service) or any part
thereof in excess of six months; and
(c) Notice in the prescribed manner is to be served on the appropriate Government (or such
authority as may be specified by the appropriate Government by notification in the Official
Gazette).
14. What compensation will the workman get when an undertaking closes down?
Where an undertaking is closed down for any reason whatsoever, every workman who has been
in continuous service for not less than one year in that undertaking immediately before such
closure is entitled to notice and compensation in accordance with the provisions as if the
workman had been retrenched.
Provided that where the undertaking is closed down on account of unavoidable circumstances
beyond the control of the employer, the compensation to be paid to the workman is not to
exceed his average pay for three months.
40
THE MINIMUM WAGES ACT, 1948

1. What is the object of the Minimum Wages Act, 1948?
The object of the Act is to provide for fixing and revising minimum wages in certain
employments in order to stop sweated labour and prevent the exploitation of unorganized
labour.
2. Which employments are intended to be benefited by fixation of minimum rates of

wages?
The Government is required to fix minimum rates of wages payable to employees employed
in the employments specified in Part I or Part II of the Schedule appended to the Act.
{Section 3}
3. Is the list of employments specified in the Schedule to the Act exhaustive?: The list is
not an exhaustive one. The appropriate Government can add any employment to either part of
the Schedule. {Section 27}
4. Is it competent for a government to bring a teacher within the purview of the Act by
amending the Schedule to the Act?
A teacher would not come within the definition of "employee" given under Section 2(i) of the Act.
It is beyond the competence of a Government to bring the teachers of an educational institution
under the purview of the Act.
5. Is the Act applicable to daily rated employees?

The Act is expected to fix the minimum wages in respect of employees whether they are
casual, daily rated, temporary or permanent. The Act is applicable to daily rates employees
also.
6. What is the procedure the Government has to follow for fixing and revising minimum
wages?: The Government has to fix and revise minimum wages either-
a. By appointing one or more committees and sub-committees consisting of representatives of

employers and employees and also of independent persons to hold necessary enquiries and by
taking into consideration the advice tendered by the committee or committees; or
b. By formulating and publishing its proposals and taking into consideration the representations
received in response to the proposals. {Section 5}
7. Is the task of the Government over once it fixes minimum rates of wages payable to
employees employed in a scheduled employment?
The task of the Government is not over once it fixes minimum rates of wages payable to
employees employed in a scheduled employment. The minimum rates of wages of fixed are
required to be reviewed and, if necessary, revised by the Government at intervals not
exceeding five years. {Section 3(1)(b)}
8. Is it permissible for the employer to pay minimum wages in kind?

As a rule minimum wages payable under the Act must be paid in cash. The employer, however,
can pay them in kind with the permission of the appropriate Government. {Section 11}
41
9. Can attendance bonus be treated as part of the minimum wage fixed under the Act?
Attendance bonus is in the nature of an incentive. It is an additional payment made to the
workmen as a means of increasing production. It cannot be treated as part of the minimum
wage fixed under the Act.
10. Can the supply of essential commodities at concessional rates from part of the
minimum wage?
Such supply cannot form part of the minimum wage unless it is authorized by the appropriate
Government by a notification in the Official Gazette under section 11(3) of the Act.
11. What is the obligation of the employer in respect of payment of wages under the
Minimum Wages Act, 1948?
Where minimum wages are fixed and enforced under section 5 of the act in respect of any
employment covered by the Act, the employer is bound to pay to every employee engaged in
that employment wages at a rate not less than the minimum rate to fixed and enforced.
{Section 12}
12. Is an employer, who is not paying basic wages and cost of living allowance
separately as fixed under the Act but who is paying wages more than prescribed
minimum rates under the Act, committing any illegality?
The minimum rate of wages fixed under the Act is remuneration payable to the worker as one
package of fixed amount, Neither the scheme of the Act nor any provision of the Act provides
that the rate of minimum wages is to be split into basic wages and cost of living allowance and
therefore where an employer is paying total sum which is higher than the minimum rate of
wages fixed under the Act including cost of living allowance, the employer is not committing
any illegality.
13. What is the number of hours, which constitutes a normal working day for the
employees covered by the Act?
A normal working day prescribed for the employees covered by the Act is of 9 hours. {Section
13 & Mah. Rule 24}
14. Are the employees covered by the Act entitled to overtime wages?
If an employee covered by the Act works for more than 9 hours on any day or 48 hours in any
week, he is in respect of overtime work entitled to wages at double the ordinary rate of wages.
{Section 14 & Mah. Rule 26}
15. Can an employee getting wages higher than the minimum wages fixed under the Act
claim overtime wages under Section 20(2) of the Act?
Where an employee gets wages higher than the minimum wages fixed under the Act he cannot
claim any benefit under the Act.
16. Can an Industrial Tribunal adjudicate upon a dispute relating to the fixation of
wages of employees covered under the Act?
Section 24 of the Act does not bar the jurisdiction of an Industrial Tribunal to adjudicate upon a
dispute relating to the fixation of wages of employees covered under the Act.
17. Can an Industrial Tribunal fix wages at rates higher than the rates of minimum
wages fixed under the Minimum Wages Act?
An Industrial Tribunal adjudicating a dispute relating to wages is not bound by the minimum
rates of wages fixed under the Minimum Wages Act and it is open to it to fix wages at rates
higher than the rates of minimum wages fixed under the Act.
42
18. What is the position of the employer who is unable to pay minimum wages fixed
under the Act?
The employer is bound pay minimum wages fixed under the Act and it is irrelevant whether he
has the capacity to pay them or not.
19. What is the procedure the employee has to follow for making a claim under the Act?
The procedure for making a claim is as follows
a. An employee having any claim under the Act has to make an application to the Authority
appointed under
the Act.
b. Such application can be made by the employee himself, or any legal practitioner or any
official of a registered trade union.
c. Such application has to be made within six months from the date on which the claim amount
became payable.
d. In appropriate case the Authority can, over and above directing the payment of the
difference between minimum wages payable and wages actually paid, award compensation
upto ten times the amount of the difference.
e. The amount directed to be paid by the Authority can be recovered as if it were a fine
imposed by a Magistrate.
f. Every direction of the Authority will be final. {Section 20}
20. Are the employees of a Students' Hostel entitled to minimum rates of wages fixed
for hotels and restaurants?
The intension of the Legislature was to include employment on hotels and restaurants under
purview of the Minimum Wages Act. When the Legislature specifically omitted the term
"Students' Hotels" in the Schedule, it thereby excludes it from the purview of the Minimum
Wages Act.
21. Can the Authority appointed under the Act to decide the claims of the employees
award compensation to the tune of ten times of the amount of the difference
between wages payable and wages actually paid, in every case?
The limit of "ten times the amount of such excess" mentioned in section 20(3)(i) of the Act is
the maximum limit. When the Authority awards heavy compensation under the said section, it
must give reasons for doing so.
22. Has an employee to pay any court-fee for making an application to the Authority?
In the State of Maharashtra an employee is exempted from paying any court-fee, other than
the fee for service of process, for making such application; but at the same time the
Government is empowered to recover the amount of such court-fee from the employer if the
employee succeeds in the application. {Section 21A}
23. Can a group of employees make a single application for claiming minimum wages?
A single application can be made on behalf or in respect of any number of employees.
24. Is an employer required to maintain any register and record?

Every employer must maintain a muster-roll-cum-wage register and also a bound inspection
book. {Rule 27 & 28}
25. What are the offences under the Act and what is the punishment for them?
If any employer -
a. pays to any employee less than the minimum rates of wages fixed for that employees' class
of work; or
b. contravenes any rule or order made by the appropriate Government under Section 13
regarding hours of work; he would be punished with imprisonment upto five years or with fine
upto Rs. 10000.00 or with both. The offences under Section 22 of this Act shall be cognizable
and non-bailable. {Section 22, 22B}
43
26. Is it permissible for an employee to recover minimum wages payable under the Act
by filing a suit in a Civil Court?
The Act prohibits Civil Courts from entertaining any suit for recovery of minimum wages
payable under the Act. {Section 24}
27. Is it permissible for an employee to relinquish his rights under the Act?
An employee is prohibited from contracting out of the Act, i.e. from giving up any of his rights
under the Act and any contract or agreement made by him relinquishing or reducing his right to
a minimum rate of wages or any privilege or concession accruing to him under the Act is null
and void. {Section 25}
THE PAYMENT OF WAGES ACT, 1936

1. What is the object of the Payment of Wages Act, 1936?
The main object of the Act is to avoid unnecessary delay in the payment of wages and to
prevent unauthorized deductions from the wages.
2. What is the applicability of this Act?

This Act is applicable to employees with wages less than Rs. 6500 per month.
3. What is the time laid out for employer to pay the wages?
The employer needs to pay wages to the employee within one month or even
on a weekly or fortnightly basis.
4. To which establishments is the Act applicable?
The Act is applicable to the payment of wages to persons employed:

a. In factories;
b. upon railways;
c. In other establishments specified in sub-clauses (a) to (g) of section 2(ii) of the Act.
The Act empowers the State Government to extend its provisions to the persons employed
in any establishments over and above the aforesaid establishments. {Section 1}
5. What registers are required to be maintained by the employer?

d. The employer needs to maintain the following registers:
e. 1) Register of Fines
f. 2) Register of wages
g. 3) Register of deductions for damage or loss
h. 4) Register of advances made to the employees.
6. Are all wages covered or protected by the Act?
Wages averaging less than Rs. 6500.00 per month only are covered or protected by the Act with
effect from 11th September 2005. {Section 1(6)}
44
7. Are overtime wages to be taken into account for deciding the applicability of the Act?
Wages means contractual wages and not overtime wages. They are not to be taken into
account for deciding the applicability of the Act in the context of section 1(6) of the Act.
8. Can any employer fix a period longer than one month for paying wages to a person
employed by him?
The period to be fixed for paying wages to an employed person must not exceed one month.
That means, an employer can choose to pay wages to a person employed by him for a period of
every week or every fortnight, but not for a period of every two months or every three months,
{Section 4}
9. What are the requirements of the Act in respect of time of payment of wages?
The following are the requirements of the Act in respect of time of payment of wages:
a. Wages must be paid on a working day and not on a holiday.
b. Establishments employing less than 1000 persons must pay wages before the expiry of the
7th day of every month and other establishments must pay wages before the expiry of the
10th day of every month.
c. When the employment of any person is terminated, the wages earned by him must be paid
before the expiry of the second working day from the day of termination. {Section 5}
10. What are the requirements of the Act in respect of method of payment of wages?
Wages must be paid in current coin or currency notes or in both and not in kind. It is, however,
permissible for an employer to pay wages by cheque of by crediting them in the bank account if
so authorized in writing by an employed person. {Section 6}
11. What is the provision of the Act regarding deductions from the wages payable to an
employed person?
The Act prohibits all kinds of deductions except those, which are authorized by or under the Act.
{Section 7}
12. What are the provisions of the Act regarding the imposition of fines on the employed
person?
a. The employer must exhibit on his premises a list of acts or omissions for which fines can be
imposed.
b. Before imposing a fine on an employed person he must be given an opportunity of showing
cause against the fine.
c. The amount of fine must not exceed 3 percent of the wages.
d. A fine cannot be imposed on an employed person who is under the age of 15 years.
e. A fine cannot be recovered by installments or after 90 days from the day of the act or
omission for which it is imposed.
f. The moneys realized from fines must be applied to purposes beneficial to employed persons.
{Section 8}
13. Is the employer free to impose fines in respect of any act of omission on the part of
employed persons?
Fines can be imposed in respect of only those acts or omissions of the employed persons which
are approved by the authority prescribed under section 8(1) of the Act. {Rules 10 to 12}
45
14. What is the procedure prescribed for the imposition of fine and for making
deductions for damage or loss?
Any person desiring to impose a fine on an employed person or to make a deduction for
damage or loss shall explain personally or in writing to the said person the act or omission, or
damage or loss in respect of which the fine or deduction is proposed to be imposed, and the
amount of fine or deduction, which it is proposed to impose, and shall hear his explanation in
the presence of at least one other person, or obtain it in writing. {Subsection 8(3), 10(1-A) &
Rule 15}
15. Apart from the employer himself, who else is responsible for the payment to the
persons employed by him of wages required to be paid under the Act?
a. In factories, if any person has been named as the manager of the factory, then the person
so named is also responsible for such payment.
b. In industrial establishments, if there is a person responsible to the employer for the
supervision and control of the industrial establishment, then the person so responsible is
also responsible for such payment.
c. Upon railways, if the employer is the railway administration and the railway administration
has nominated a person in this behalf, then the person so nominated is also responsible for
such payment. {Section 3}
16. What is the procedure an employed person has to follow for claiming deducted or
delayed wages?
a. If contrary to the provisions of the Act any deduction has been made from the wages of an
employed person or any payment of wages has been delayed, he has to make an application
for claiming the same to the Authority appointed under the Act.
b. Such application can be made by the employed person himself or a legal practitioner or an
official of a registered trade union.
c.Such application has to be made within a period of 12 months from the date on which the date
on which the deduction from the wages was made or from the date on which the payment of
the wages was due to be made.
d. When any application under Subsection (2) is entertained, the authority shall hear the
applicant and the employer or other person responsible for the payment of wages under
Section 3, or give them an opportunity of being heard, and, after such further enquiry, if any,
as may be necessary, may, without prejudice to any other penalty to which such employer or
other person is liable under this Act, direct the refund to the employed person of the amount
deducted, or the payment of the delayed wages, together with the payment of such
compensation as the authority may think fit, not exceeding ten times the amount deducted in
the former case and not exceeding three thousand rupees but not less than one thousand five
hundred rupees in the latter, and even if the amount deducted or delayed wages are paid
before the disposal of the application, direct the payment of such compensation, as the
authority may think fit, not exceeding two thousand rupees.
e. The amount directed to be paid by the Authority ca be recovered as if it were a fine.
f. If the employed person is not satisfied with the order of the Authority, he himself or a legal
practitioner or an official of a registered trade union, if the amount claimed by him is more
than Rs. 25.00, can, within 30 days from the date of the order prefer an appeal to the
Appellate court. {Subsection 15 & 17}
17. Can the Authority refuse to entertain an application presented to it?:
The Authority may refuse to entertain an application presented to it, if after giving the
applicant an opportunity of being heard the Authority is satisfied, for reason to be recorded
in writing that -
a. The applicant is not entitled to present an application;
b. The application is barred by limitation, or
46
c.The applicant shows no sufficient cause for making a direction under Section 15.
The Authority may refuses to entertain an application presented to it if the application is
insufficiently stamped or otherwise incomplete. When the Authority refuses to entertain an
application for the said reason, he shall return it with an indication of the defects. The
application so refused may be presented again after the defects have been made good.
{Rule 7 or Central Rules}
18. If any employee is prevented from making an application for payment of deducted or
delayed wages within the prescribed period of limitation of twelve months, can the
Authority admit his application after the expiry of the said period?
Under the second proviso to Section 15(2) of the Act the Authority is given power to condone
the delay in making the application within the said period if sufficient cause is shown by the
applicant for not making the application within the said period.
19. Is it correct to contend that the expression "ten times the amount deducted"
appearing in Section 15(3) of the Act means that the compensation awarded under
that section must be always in multiples of the wages deducted?
The compensation awarded under section 15(3) may not be in multiples of the wages deducted.
The Authority is free to fix such compensation at the proportionate rate which it may think to be
fair and just subject to the maximum of ten times the amount deducted.
20. Is the compensation awarded under section 15(3) of the Act penal or in the nature of
recompensation?
Compensation awarded under section 15(3) is not penal but is in the nature of a payment by
way of recompensation for loss or privation by reason of deduction from the wages paid.
21. Can a group of employed persons make a single application for claiming deducted or
delayed wages?
This can be done if they are working in the same establishment and if deductions have been
made from their wages for the same cause and during the same wages period or if their wages
have remained unpaid for the same wage period. {Section 16}
22. Has the employed person to pay any court-fees for making and application for
claiming deducted or delayed wages?
In the State of Maharashtra and in some other States the employed person is exempted from
paying any Court-fees, other than fees for service of process, for making such application; but
at the same time the Government is empowered to recover the amount of such court-fees from
the employer of the employed person if the employed person succeeds in the application.
{Section 15A}
23. Can the employer also prefer an appeal against the order of the Authority?
If the employer is aggrieved by the order of the Authority, he also can, within 30 days of the
date of order, prefer an appeal to the Appellate Court if the amount ordered to be paid by him is
more than Rs. 300.00 or the order imposes on him a financial liability of more than Rs. 1000.00
25. If an employer wants to file an appeal against any order of the Authority directing
payment of wages, is he required to comply with any condition at the time of filing
the appeal?
Section 17(1A) of the Act provides that no such appeal shall lie unless the amount payable
under the order has been deposited by the employer with the Authority.
26. Can the amount required to be deposited under Section 17(1A) be paid after the
filing of the appeal?
The amount required to be deposited under Section 17(1A) must be paid at the time of filing of
the appeal. The appeal filed un-accompanied by the certificate of deposit is not maintainable.
47
27. If a person is prevented from filing an appeal to the Appellate Authority within the
prescribed period of limitation of thirty days, can the Appellate Court accept his
appeal after the expiry of the said period?
The Act makes no provision for condonation of the delay in filing the appeal.
28. If the employer, instead of availing of the remedy of appeal under section 17 of the
Act, files a writ petition under Article 226/227 of the Constitution of India, is the writ
petition maintainable?
The writ petition is not maintainable if by filing it the employer has deliberately chosen to
circumvent the provisions of law.
29. Is it competent for the Authority to entertain and decide an application for payment
of subsistence allowance?
The subsistence allowance payable to an employee placed under suspension pending

Departmental Enquiry is covered within the definition of wages given under Section 2(6) of the
Act and, therefore, the Authority is competent to entertain and decide an application for
payment of subsistence allowance.
30. Is it competent for the Authority under the Act to examine the justifiability of an
order of suspension?
If an order of suspension has been passed by an officer competent to pass it, the authority
under the Act cannot examine its validity to see as to whether it was justified in law or not.
31. Can the Authority under the Payment of Wages Act decide the question of the status
of an employed person?
The Authority under the Payment of Wages Act is a Court of summary jurisdiction having powers
to deal with the simple matter of delay in payment of wages or deduction from wages. It is not
within the competence of the Authority to decide the question of the status of an employed
person, i.e., whether he is a Mistry or welder. The matter is a complicated question of law as
also of fact.
32. Can there be attachment of property pending the disposal of a claim for deducted or
delayed wages?
The Authority or the Appellate Court can attach the property of an employer pending the
disposal of such claim if it is satisfied that the employer is likely to evade payment of any
amount that may be ordered to be paid by it. {Section 17A}
33. Can an employee file a suit against his employer-seeking injunction restraining the
employer from making any deductions from his wages?
No such suit can be filed because according to section 22(d) of the Act no Court can entertain
any suit for the recovery of any deduction from wages insofar as the sum so claimed can be
recovered by an application under section 15 of the Act.
34. Can any employed person relinquish his rights under the Act?
An employed person is prohibited from contracting out of the Act, i.e. from giving up any right
conferred upon him by the Act, and any contract or agreement made by him relinquishing such
rights is null and void. {Section 23}
48
35. Is an agreement between an employer and his employees authorizing the deduction
of union subscription from the salaries of the employer null and void under Section
23 of the Act?
Such agreement being beneficial and advantageous to the employees is not null and void under
Section 23 of the Act.
36. Is an employer required to display the abstracts of the Act in his factory or
establishment?
Every employer must display in his factory or establishment a notice containing the abstracts
of the Act and the rules made there under in English and also in the language understood by the
majority or the persons employed in the factory or establishment. {Section 25}
Form No. VI and Rule 24 regarding the display of the abstract of this Act has been deleted by
Government of Maharashtra vide notification date 30-Mar-2001 MGG Pt. I-L. Ext. date 30-Mar-
2001 P. 213
37. What is the responsibility of an employer in respect of wages remaining unpaid on

account of the death of an employed person on account of the whereabouts of an
employed person not being known?
An employer shall stand discharged of his liability to pay such wages if he pays them to the
nominee of the deceased person, and in case he is not able to do so, if he deposits them with
the prescribed authority. {Section 25A}
38. Is deducting some amount or union levies from wages of employees and paying the
same to the union invalid under section 7 of the Act?
If such deduction and payment is made with the consent of the employees and / or with the
approval of a competent Court, it is not invalid under Section 7 of the Act.
39. What are the conditions imposed on deductions for recovery of advances of wages?
1. An advance of wages shall not exceed four months wages.

2. The advance may be recovered in installments by deduction from wages spread over not
more than 18
months.
3. No installment shall exceed one-third of the wages for the month.
4. The rate of interest charged for advances shall not exceed 6 1/4% per annum. {Rule 18}
40. Are the provisions of section 9(2) of the Payment of Wages Act permitting deduction
in wages for participation in illegal strike affected by the provisions of section 26 of
the Industrial Disputes Act providing for penalty for illegal strikes?
The Payment of Wages Act and the Industrial Disputes Act operate in different fields and the
provisions of section 26 of the Industrial Disputes Act providing for penalty for illegal strikes do
not affect the right of the management to effect a cut in wages to the extent permitted by
Section 9(2) of the Payment of Wages Act.
49
THE EMPLOYMENT EXCHANGES ACT—1959
50
1. What is the object of this Act ?
This Act compels the employer to notify vacancies occurring in his

establishment to the specified Employment Exchanges.
2. How does it help the employer ?

It enables the employer to choose the best.
3. How does it help the person ?

It provides an opportunity to the person to claim employment.
4. Is it compulsory for the employer to employ those sponsored by

Employment Exchanges ?
No, the employer is not obliged to select or employ a person from the
well.
5. Does the Act apply to each and every vacancy ?

This act does not apply to vacancies in agriculture, domestic service,
unskilled office work, employment connected with the staff of Parliament
and also to jobs where the total duration is less than three months.
6. What is the manner of notifying the vacancies ?

Notification of vacancies should be in a prescribed form as specified in the
Act.
7. What is the time limit to notify the vacancies ?

15 days before the applicant is required to come for an interview/ written
test.
8. Is there a provision of notifying the vacancies in Employment

exchanges outside the state ?
Yes, In case the employer thinks that the choices would be better if he
notifies the vacancies on a state level then he can do so at the Central
Employment Exchange or else he can notify at the local Employment
Exchange.
9. What is the time limit for notifying the vacancies in case of notifying in the
Central Employment Exchange ?

The time limit for notifying the vacancies in the Central Employment Exchange is
60 days prior to the date of dispatch of the particulars of interview/ written test.
10. By what time should the employer announce the results of the selection?
An employer has to announce the results of the selection within 15 days of his date
of selection.
11. Is the employer required to submit returns?
51
Yes, the employer needs to quarterly and biennial returns in the prescribed
forms to the local Employment Exchange.
Trade Union Act -1926

1. How many persons required in an industry for registration of a Trade Union?
10% or 100 whichever is less engaged or employed in an establishment or industry.
2. How many persons required for making an application for Registration of a Trade
Union
Minimum Seven.
3. Procedure for Registration of a Trade Union
Application in form A
Schedule I
52
Schedule II
Bye - law of the union
Resolution authorizing 7 members to make an application
Challans Receipt for Rs. 500/-
4. Where to submit the application?
Submit the application before the Asst. Labour Officer having jurisdiction over the area where
the Head Office of the union is situated.
5. Can the employers form a Trade Union?
Yes
6. A Trade Union, which has an identical name with another. Will it be registered?
Registrar of Trade Union shall not register that union until they make a change in the identical
name.
7. Registrar of Trade Union withdrew a union’s registration in view of non performance

of certain
statutory provisions. Is it possible?
Registrar has the power only to cancel the registration. He cannot withdraw the order of
registration
issued by him.
8. When happens when membership falls down after the date of application?
Application shall not become invalid.
9. Who is a protected workman?

Office bearers of a registered Trade Union are protected workmen.
1O. Cancel the registration of a Trade Union when.

Trade Union Certificate obtained by fraud or mistake.
Contravened any provision of the Trade Union Act.
(With two months notice from the Registrar)
11. Registrar’s decision not correct, whom to appeal
Appeal to respective High Court
12. What is the minimum age to be a member of Trade Union?

One who attained the age of 15 years?
13. What is the minimum age to be an office bearer?

Attained the age of 18 Years.
14. Registers and records to be maintained by, a Trade Union
Register of membership and subscription in Form ‘M’

Register of receipts and disbursement of general Fund
Minutes book of the meeting stock register
Subscription receipt book.
53
54

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FREQUENTLY

S.N Name of the Act Page

2. Employees Pension Scheme, 1995 4–8

3. The Employees Provident Fund and MP 9 – 17

2. Which form has to be filled for nomination of Gratuity?

Ans: Form F has to be filled for Nomination of Gratuity.

3. who can be nominated for Gratuity?

5. When is an employee eligible for getting gratuity?

6. What if an employee completes 4 years & 6 months of service, is he eligible for

7. What if an employee before completing 5 years of continues service expires, is he

8. What is the maximum Gratuity payable to an employee?

9. Is retrenched employee entitled to gratuity?

Ans: Yes, a retrenched employee is also entitled to gratuity.

EMPLOYEE PENSION SCHEME, 1995.

1) Who will be covered by the Pension Scheme?

2) What is a covered establishment?

8) Is employee the only beneficiary of Fund?

9) What is meant by ‘Family’?

11) Suppose member has not nominated anyone.

12) Can member change his/her nomination?

16) When does an employee become eligible to become a member of Employees'

An employee becomes a member of Employees Provident Fund (Employees' Provident Fund)

The details of employees enrolled as members of Employees' Provident FundS'52, Employees'

Yearly consolidated statement of contributions- To be forwarded yearly along with form-3A. It

Specific additional requirements:

Back to Contents Page

THE EMPLOYEE PROVIDENT FUND & MP ACT, 1952

Q9) When is an employee eligible to enjoy pension scheme?

Q10) What does it mean by continuous service of ten years?

Q13) What is this 19 & 10C form?

Ans: Compound interest as declared by the Govt. is given for

Q15) What is the accounting year for Provident fund account?

Ans: Accounting year is from March to February.

Ans: Two kinds of benefits are provided under the scheme-

Q18) What is the purpose of the Employee's Pension Scheme?

Ans: The purpose of the scheme is to provide for

Q20) Do we receive money through postal order?

Q21) How would I know the amount of accumulations in my PF account?

Q22) which establishments are covered by the Act?

Q25) Is a trainee an employee under the Act?

Q27) Who is the authority to decide regarding the disputes if any?

Q28) What in case there are workers involved as Contract labour?

Ans: Arrears are considered to be emoluments earned by the employee and PF is to be

Q33) Is it possible for an employee to contribute at a higher rate of interest than 12 %?

Q34) What is the interest on the PF accumulations?

Back to Contents Page

1) Who is an International worker?

2) Who is an ‘excluded employee’ under these provisions?

3) Who is a ‘detached worker’?

4) What does the term ‘Indian employee’ mean?

5) Who all shall become the members of the fund?

6) Which category of establishments shall take cognizance of these provisions?

12) What constitutes the Pensionable service?

13) How is Pensionable service determined?

16) What is a social security agreement (SSA)?

17) What are the provisions covered in a social security agreement?

c) Provision for totalisation of Benefits

18) What is the status of the SSAs?

27) Whether benefit of reciprocity can be extended to an International Worker if his

Back to Contents Page

Q2) What is the minimum bonus prescribed by the Act?

Q3) What is the maximum bonus payable under the Act?

Q4) What is the applicability of the act?