Brief of Acts

• The object of the Factories Act is to regulate the conditions of work in manufacturing establishments coming within the definition of the term "factory" as used in the Act.
• The first Act, in India, relating to the subject was passed in 1881. This was followed by new Acts in 1891, 1911, 1922, 1934 and 1948. The Act of 1948 is more comprehensive than the previous Acts. It contains detailed provisions regarding the health, safety and welfare of workers inside factories, the hours of work, the minimum age of ¬workers, leave with pay etc. The Act has been amended several times.
• The Act is based on the .provisions of the Factories Act of Great Britain passed in 1937.
• Applicability

Manufacturing with use of power with 10 or more workmen
Manufacturing without power with 20 or more workmen
Manufacturing / process in “dangerous operations”

• Requirements

Each state has its own rules and procedure for obtaining license and renewals. It includes approval of factory plans and machinery layout application for license / renewals with fees depending upon number of total workmen employed and installed horse power. Maintenance of various registers, records etc. Enactment also requires certain notices and returns to be submitted to the authorities.

• Consequences

There are penalties for different breaches and contraventions. For any non or less compliances of the rules, occupier and manager of the factory shall each be guilty of an offence punishable with imprisonment and/or fine. There are provisions of enhanced penalty after previous conviction.

This enactment deals with the Health & Welfare of employees. It also deals with working hours, leave etc. This enactment is applicable where factories Act is not applicable and sales and/or services are carried out

• Applicability

Sales and/or services are carried on
Services should fall under the purviews of this enactment
Area is notified to be coverable under this enactment

• Requirements

Each state or local authority appointed by state has its own rules and procedure for obtaining Registrations and renewals. It requires application, payment of fees maintenance of various registers, records etc.

• Consequences

There are penalties for different breaches and contraventions. For any non or less compliances of the rules, owners and manager of the establishment shall each be guilty of an offence punishable with imprisonment and/or fine. There are provisions of enhanced penalty after previous conviction

The Constitution of India under "Directive Principles of State Policy" provides that the State shall within the limits of its economic capacity make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old-age, sickness & disablement and undeserved want.
The Employees' Provident Fund Organization (EPFO) is a statutory body of the Government of India under the Ministry of Labour and Employment. It administers a compulsory contributory Provident Fund Scheme, Pension Scheme and an Insurance Scheme. It is one of the largest provident fund institutions in the world in terms of members and volume of financial transactions that it has been carrying on.

• Applicability

This enactment is compulsorily applicable if 20 or more employees (including contractor’s) are employed and activities are falling under scheduled I. Option is also available for voluntary coverage, if majority of employees and employer agrees for the coverage

• Employee’s eligibility

Employee’s salary (Basic + DA) rate is below Rs. 15000/- pm
Remains to be covered, Opted to be covered even rate is above Rs. 15000/- pm
Coverage of disabled an international workmen u/p 82 & 83 respectively

• Contributions

Normally 12% from employees and 13.61% (12+1.10+0.50+0.01) from employers

• Liabilities & consequences

Employer is liable for both the shares of past periods
Contractor’s employees liability is on principal employer
Delay / Defaults in payments of contributions and charges leads to levy of damages, interest
Provisions of imprisonment and fine are there

The promulgation of Employees' State Insurance Act, 1948 envisaged an integrated need based social insurance scheme that would protect the interest of workers in contingencies such as sickness, maternity, temporary or permanent physical disablement, death due to employment injury resulting in loss of wages or earning capacity. the Act also guarantees reasonably good medical care to workers and their immediate dependants.
Following the promulgation of the ESI Act the Central Govt. set up the ESI Corporation to administer the Scheme. The Scheme, thereafter was first implemented at Kanpur and Delhi on 24th February 1952. The Act further absolved the employers of their obligations under the Maternity Benefit Act, 1961 and Workmen's Compensation Act 1923. The benefit provided to the employees under the Act are also in conformity with ILO conventions.

• Applicability

All factories employing 10 or more persons
Shops & commercial establishments employing 20 or more coverable employees

• Employee’s eligibility

Employee (Direct / Contractual) who’s wages / salary rate is upto Rs.15,000/- pm
Disabled employee who’s wages / salary rate is upto Rs. 25,000/- pm

• Contributions

1.75% from employees and 4.75% from employer on gross earned wages

• Liabilities & consequences

Employer is liable for both the shares of past periods
Contractor’s employees liability is on principal employer
Delay / Defaults in payments of contributions and charges leads to levy of damages, interest
Provisions of imprisonment and fine are there
Time barred for more than 5 yrs.

This act has been enacted to regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith. It applies to all establishments employing 20 or more contract labour and to all contractors who employs 20 or more contract labours. It applies to all establishments 20 or more contract Labour and to all contractors who employer, 20 or more Contract Labour. The Act provides for the constitution of Central and State Advisory Boards to advise the concerned governments on matters arising out of the administration of the Act. The Central Government has issued a number of notifications prohibiting employment of Contract Labour in different categories of works, job and process as in mines, Food Corporation of India's godowns, port trusts and many other industries/ establishments for which it is the Appropriate Government. The Central Advisory Contract Labour Board has also constituted a number of committees to enquire into the question of prohibition of contract labour system in different establishments. Central Government is the Appropriate Government in respect of industries and establishments for which it is Appropriate Government under the industrial Disputes Act, 1947.

• Applicability

This enactment is not applicable to the establishment performing work only of an intermittent or casual nature otherwise
If principal employer employs 20 or more workmen through contractor’s
If contractor employs 20 or more workmen for principal employer

• Requirements

Principal employer need to obtain registrations and to amend the same, if there are any changes
Contractor need to obtain Contract Labour license and renew the same before 15 days as per date of expire
Maintenance of various registers, records are required

• Consequences

Authority can prosecute principal employer and/or contractor/s for breach of the provisions of this enactment. Provision of imprisonment upto 1 yr. and fine upto Rs. 5,000/- are there

The Act is applicable to every establishment which employs 10 or more workers in any building or other construction work and to the project’s cost of which is more then Rs.10 lakh. There is also provision of constitution of Central and the State Advisory Committees to advise the appropriate Governments on matters arising out of administration of the law besides constitution of Welfare Boards by the State Governments and registration of beneficiaries under the Fund and provision for their identity cards etc. These legislations provide for regulating the employment and conditions of service, safety and health and welfare measures for the construction workers by setting up of a Welfare Fund at the State level.

• Applicability

It applies to every establishments which employs 10 or more building workers in any building or other construction work
Provisions of this enactment are not applicable if the location is covered under Factories Act or the Mines Act

• Requirements

Obtaining registrations / license
Payment of fees depending upon construction worker
Maintenance of various registers, records etc.
Providing various facilities like shelter, drinking water, crèche, toilet blocks, canteen etc.

• Consequences

Authority can prosecute principal employer and/or contractor/s for breach of the provisions of this enactment. Provision of fine upto Rs. 5,000/- are there.

The Act empowers the Government to fix minimum wages for employees working in specified employments. It provides for review and revision of minimum wages already fixed after suitable intervals not exceeding five years. Central Government is the appropriate agency in relation to any scheduled employment carried on by or under its authority or in railway administration or in relation to mines, oilfields or major ports or any corporation established under the Central Act. State governments are the appropriate Government in relation to other scheduled employment. The Central Government is concerned to a limited extent with building and construction activities mostly carried on by Central Public Works Department, Ministry of Defence etc, and agricultural farms under the Ministries of Defence and Agriculture. Bulk of such employment fall in the state spheres and state governments are required to fix/revise wages and ensure their implementation in respect of scheduled employment within their spheres. Enforcement of Minimum wages in Central sphere is secured [through the Central Industrial Relations Machinery (CIRM). The Central Government has fixed Minimum Wages under the Minimum Wages Act, 1948 for 40 scheduled employments under the Central Sphere. CLC(C), is revising VDA at the interval of six months i.e. W.e.f. 1st April and 1st October.

• Applicability

Employer should see the schedule under which it’s activity and zone falls.

• Requirements

Various registers, records are required to be maintained
Various notices and forms need to be submitted to the authority
Abstract, rates of MW need to be displayed on notice board

• Consequences

Employer is liable to pay the difference of wages paid and minimum wages
Provision of penalty, fine and imprisonment are there in the enactment

The Act Applies to all Factories and every other establishments, which employs twenty or more workmen. The Payment of Bonus Act, 1965 provides for a minimum bonus of 8.33 percent of wages. The salary limited fixed for eligibility purposes is Rs. 3,500 per month and the payment is subject to the stipulation that the bonus payable to employees drawing wages or salary not exceeded to Rs.10000 per month would be calculated as if their salary or wages is Rs. 3,500 per month. The Central Government is the appropriate authority in respect of the industries /establishments for which it is appropriate Government under the industrial Disputes Act, 1947.

• Applicability

To every factory
To other establishments provided employing 10 or more persons
Once applicable remains applicable
Employee is entitled for bonus provided worked for minimum 30 days and rate of salary (Basic + DA) is below Rs. 10,000/- pm in a financial year

• Requirements

Maintenance of A & B registers based on balance sheet and income tax rules
Maintenance of C register i.e. disbursement of bonus to employees
Annual return in Form no. D

• Consequences

Provisions of payment of bonus, if not paid according this enactment punishment of imprisonment or fine are in the enactment

The Act is applicable, to factories, mines, oil fields, plantations, ports, railways, motor transport undertakings, companies, and to shops and other establishments, Employing 10 or more workmen. The Act provides for payment of gratuity at the rate of 15 days wages for each completed year of service subject to a maximum of Rs. 10 lakh. In the case of seasonal establishment, gratuity is payable at the rate of seven days wages for each season. The Act does not affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer. Central Government is the Appropriate Government in relation to an establishment belonging to or under the control of the Central Government or having branches in more than state or an establishment of a factory belonging to or under the control of Central Government or of a major port, oilfield railway or mine.

• Applicability

Every factory as define in factories Act
Every shop or commercial establishment in which 10 or more persons are employed
Gratuity is payable on the basis of last drawn salary

• Requirements

Notice of opening need to be submitted
Nomination form need to be obtained
It is advisable to have gratuity policy
Abstract and other notices need to be displayed on the notice board

• Consequences

Payment of gratuity to employees is compulsory, employee can apply / appeal to authorities
Provisions of imprisonment and fine are in the enactment

Housing accommodation is one of the basic needs of every human being. The health and job efficiency of a worker depends upon the state of his housing accommodation. This Act, therefore, aims at providing for payment of at least certain minimum amount of house rent allowance to the industrial workers. The Act does not come in the way of the workers to strive for better service conditions relating to housing accommodation or house rent allowance.

• Applicability

The Act is applicable to factories and establishments employing 50 or more workmen in the state of Maharashtra and in the areas as classified by the government from time to time.

• Requirements

Employer shall pay to workmen HRA @ 5% of wages (Basic + DA)
To maintain the HRA register

• Consequences

Default in payments can lead to imprisonment upto 1 yr. or fine of Rs. 5,000/- or both

This enactment intends for financing of welfare activities in the state of Maharashtra. Contributions are paid twice a year to the welfare fund

• Applicability

To every factory
To shops or commercial establishment applying 5 or more persons

• Requirements

Contribution is to be deducted and paid in respect of the employees who are present on the muster roll as 30th June and 31st December every year
The form A1 cum return alongwith cheque to be submitted
Unpaid wages and bonus after 3 yrs. need to be deposited with welfare fund

• Consequences

Payment of contributions interest and penalty
Provisions of imprisonment & fine are there in the enactment

The act prohibits employment of children in certain hazardous occupations and processes and regulates their employment in some other areas. Central Government is the Appropriate Government in relation to an establishment under the Control of the Central Government or a railways administration or a major port or a mine or oilfield. The Hon'ble Supreme Court in their Judgment dated 10.12.1996 in the Writ Petition (Civil) No.465/86 has given certain directions regarding the manner in which children working in hazardous occupations are to be withdrawn and rehabilitated. One of the important directions of the Supreme Court relates to conduct of survey of Child Labour. The issue of conducting survey came up for discussion in the Conference of Labour Ministers, Labour Secretaries, Labour Commissioner of all the States/UTs which was held in New Delhi on 22.1.1997 under the Chairmanship of the Union Labour Minister. After the deliberation in the conference guidelines to the State Governments for implementing the judgement of the Hon'ble Supreme Court have been issued by the Ministry of Labour.

This Act provide for the exemption of employers in relation to establishments employing up to 19 number of persons from furnishing returns and maintaining registers under nine labour Laws.