Useful Information for CA Beginners or a reminder to Seniors

This may be useful for beginners or a reminder to seniors

Appointment of Welfare Officer under Factories Act, 1948 is compulsory where 500 employees are employed.

Crèche is mandatory under the Factories Act where 30 womenworkers are employed

A canteen for use of workers providing subsidized food is statutory under the Factories Act where 250 workers are employed.

Under Factories Act, appointment of a Safety Officer is mandatory where the no. of employees exceeds 1000

Under Plantation Labour Act, 1951 a Welfare Officer is required to be appointed where the no. of workers is 300

Under Plantation Labour Act, crèche is to be set up where 50 women workers are employed or the no. of children of women workers exceeds 20

Under Plantation Labour Act, canteen is compulsory where 150workers are working

An adult worker under the Factories Act is eligible for leave with wages @ 1 day for every 20days worked during the preceding year

Under the Factories Act no worker is permitted to work for more than 9 hours in a day

Under the Factories Act, white washing of the factory building should be carried out in every 14months

Repainting or re varnishing under the Factories Act is required to be carried out in every 5 years

Certification of Standing Orders under the Industrial Employment (Standing Orders) Act, 1946 is mandatory where 100 workers are employed

In order to be eligible for maternity benefit under the Maternity Benefit Act, 1961, a woman worker should have worked for not less than 80 days in the 12 months immediately preceding the date of delivery

Under the Maternity Benefit Act, a woman worker is eligible for 12weeks leave with wages

In case of miscarriage, a woman worker shall be allowed 6 weeks leave with wages

Under the Payment of Wages Act, 1936 payment of wages of establishments employing not more than 1000 employees shall be paid within 7th day of the wage month

Under the Payment of Wages Act, payment of wages of establishments employing not less than 1000 employees shall be paid within 10th day of the wage month.

An employee is eligible to get bonus under the Payment of Bonus Act, 1965 if he had worked for not less than 30 days in the preceding year

An employee whose salary does not exceed Rs.10000 is eligible for Bonus under the Payment of Bonus Act.

The statutory minimum bonus is8.33%

Maximum bonus under the Payment of Bonus Act is 20%

In order to be eligible for Gratuity under the Payment of Gratuity Act, 1972, an employee should have a minimum continuous service of 5 years.

Under the Payment of Gratuity Act, the rate of gratuity is 15 Dayssalary for every completed year of service

A news paper employee is eligible for gratuity if he has 3 years continuous years of service

Employees who are drawing salary not more than 15000 are covered under the Employees State Insurance Act, 1948.

Employees’ share of contribution under the ESI Act is 1.75%

The employer’s share of contribution under the ESI Act is4.75%

Employees who are getting a daily average wages up to Rs.70/- are exempted from contributing employees’ share of ESI contribution.

Employees Provident Fund and Miscellaneous Provisions Act, 1952 is applied to establishments employing not less than 20 Employees

An employee whose salary at the time of joining does not exceed15000 shall become a member of the provident fund under the Act.

Employees’ share of provident fund contribution is 12%

Employer’s share of contribution to the provident fund is 3.67%

Employer’s contribution to Employees Pension Scheme is8.33%

Employer’s contribution to Employees’ Deposit Linked Insurance is 0.5%

Prior intimation to the appropriate Govt to lay off, retrench or close down an establishment is required under the Industrial Disputes Act, 1947 where there are 50 workers

Prior permission from the appropriate Govt to lay off, retrench or close down an establishment is required under the Industrial Disputes Act where there are 100 workers

Forming of a Works Committee under the Industrial Disputes Act, is mandatory where the no. employees is 100

Lay off compensation is to be paid @ 50% of average wages

The minimum no. of workers required to register a Trade Union under the Trade Unions Act, 1926 is 10% or 100 whichever is less

Continuous Service under major labour legislations means work of 240 days if work is above the ground and 190 days if work is below the ground Equal Remuneration Act, 1976prohibits discrimination in fixing salary to men and women engaged in the work of similar nature

Subsistence Allowance @ 75% shall be paid if suspension extends to a period beyond 90 days

The wages under the Minimum Wages Act, 1948 shall include a basic rate of wages and dearness allowance variable according to cost of living (

Employees State Insurance Actabsolves the employer’s liability under the Maternity Benefit Act and Workmen’s Compensation Act.

Any amount due froym an employer under settlement or award can be recovered following the procedures laid down in section 33 (C) of the Industrial Disputes Act.

The following amendments and latest provisions related under Labour Laws.

1.The Factories Act -1948 : Lot of changes to be comes under such as in Welfare Measures i.e.Canteen, Creche etc., Appointment of Safety Officers etc., Do not take any action against the employer by Police to FIR, If any accident takes place leads to death etc.

2. The ESI Act - 1948 : 1.Wage ceiling for coverage of employees is up to Rs.15,000/-per month.Conveyance Allowance is excluded under the part of wage.3. Maintenance of Previous Records for Inspection up to 5 years only.

3. The EPF Act - 1952 :1.Under EDLI - The Benifit has been extended from Rs.1,00,000/- to Rs.1,30,000/-

4. The Workmen Compensation Act - 1923 : Compensation under1. Death i.e.Minimum is 1,20,000, Maximum is Rs.4,25,000/- 2. Permanent Disablement - Minimum - Rs.1,40,000, Maximum is 5,40,000/- 2. Computation for calculation of compensation on wages has been extended from Rs.4,000/- to Rs.8,000/-.3. The Act can be amended as Employees Compensation Act. 4. Casual Labour are also covered under the act as per latest amendment.

5. The Payment of Wages Act - 1936 : Wages to be paid either through deposit in Bank or by cheque.

6. The Payment of Bonus Act - 1965 : Amendment has been proposed to extend wage ceiling from Rs.10,000/- to Rs.15,000/- and also for computation of Bonus from Rs.3,500/- to Rs.5,000/-.Minimum Bonus has also extended from 8.33% to 11%.

7. The Payment of Gratuity Act - 1972 : Maximum Payment under Gratuity has been extended from RS.3,50,000 to Rs.10,00,000/- 2. Compulsory Insurance coverage for employees under Gratuity Act.

8. The Industrial Dispute Act - 1947 : U/s 11a and impact of Sec2 a, any workmen will directly approaches to Labour Court and Tribunal Directly with out concilliation , if they are discharged, dismissed, terminated from service.

9. The Contract Labour Act - 1970 : Non Compliance under statutory provisions , contract labour to be deemed as employees of the priniciple employer.

- CA Kasliwal Ambar