LABOUR COPMLIANCE
Presented By :
Mr. Sandeep Kalaskar. (MIM – 20)
Mr. Anil Patkar (MIM – 33)
Labor Compliances Means :
Labor : The aggregate of all human physical and
mental effort used in creation of goods and services.
Labor is a primary factor of production
Compliances : Compliance just means to comply with
or adhere to.
Labor Compliances : Comply with or adhere to the
labor laws decided by the Law and Indian Labor
Ministry..
Labor Compliance in India - History
Law relating to labor and employment in India is
primarily known under the broad category of
"Industrial Law“
labor legislation in India is naturally interwoven with
the history of British colonialism
industrial/labor legislations enacted by the British were
primarily intended to protect the interests of the British
employers
The earliest Indian statute to regulate the relationship
between employer and his workmen was the Trade
Dispute Act, 1929 (Act 7 of 1929)
Labor Statutes in India
1. Apprentices Act
2. Contract Labor (Regulation and Abolition) Act, 1970
3. Employees Provident Funds Act, 1952
4. The Employees State Insurance Act (ESI Act)
5. Equal Remuneration Act
6. Factories Act, 1948
7. Labor Laws (Exemption From furnishing returns and maintaining registers by
Certain Establishments) Act, 1988
8. Payment of Bonus Act, 1965
9. Payment of Gratuity Act, 1972
10. Industrial Disputes Act
11. Industrial Employment (Standing Orders) Act
12. Minimum Wages Act
13. Payment of Wages Act
14. Trade Unions Act, 1926
15. Workmen’s Compensation Act, 1923
16. The (STATE) Shop and Establishment Act
Apprentices Act - 1961
Contract of Apprenticeship - Sec 4
- Terms and conditions agreed by the apprentice, or guardian ( incase of minor) and
employers.
- 14 yrs + MBBS certification – physical fit
Period of Apprenticeship
- Training to be determined by the National council. 0/ 4 yrs
Termination of Apprenticeship Sec- 6
- Expiry of training period .
- On application by parties to apprenticeship advisor.
Payment to Apprentice
- Employer to pay stipend as prescribed.
Obligation of employers
- Provide training in trade.
- Duly qualified in charge of training .
- Carry out contractual obligations.
- No obligation to provide job- preference
Apprentices Act - 1961
Obligation of Apprentice
- To learn conscientiously.
- To attend classes .
- To carry out all lawful orders.
- To carry out the contractual obligations.
Health and Safety Measures.
- As per Factories Act and Mines Act
Employers liability to pay in case of injury
- As per Workmen's Compensation Act.
Hours of work.
- 42 Hrs in a week basic / theoretical training Ist Yr.
- 42 to 45 hours in a week in second year .
- As per other workers in the third year.
- Not allowed to work between 10 pm to 4 am unless approved by the
Apprenticeship Advisor.
Factories Act, 1948
Objective :
To provide safety, health and welfare .
Protect against hazards.
Impose obligations
It lays down the basic minimum
Applicability :
Applicable to all factories using power and employing 10 or more workers and 20
without using power
It covers all workers whether employed directly or indirectly or through by any
agency, including a contractor,
with or without the knowledge of the principal employer,
whether for remuneration or not, in any manufacturing process,
but does not include a mine , armed forces ,a railway running shed or a hotel,
restaurant or eating place.
Factories Act, 1948
MAIN & IMPORTANT PROVISIONS OF THE ACT.
Section 7 – Notice by Occupier
The Occupier at least 15 days before he begins to use any premises as a factory.
This notice should contain all details
Sec 2n Occupier - Occupier of a factory means the person who has ultimate control
over the affairs of the factory. Provided that in case of a company any one of the
directors shall be deemed to be the occupier
Duties of the occupier –
Every occupier shall ensure, the health, safety and welfare of all workers
HEALTH & SAFETY MEASURES
CHAPTER IV (SAFETY)
CHAPTER VI A PROVISIONS RELATING TO HAZARDOUS PROCESS
CHAPTER V ( WELFARE)
Chapter VII Employment of women and young persons
CHAPTER VIII ANNUAL LEAVE WITH WAGES. SEC 78 TO 81.
Minimum Wages Act 1948
Objective :
Basic Wages
Dearness allowance (variable)
Value of other concessions, etc.
Payment of Wages
Employer to pay not less than minimum wages
No deductions other than permissible.
Payment of Wages
Employer to pay not less than minimum wages
Special Allowance need not be paid separately where consolidated salary
exceeds or is equal to minimum wages.
No deductions other than permissible.
No rationalization can be done in the wage structure to bring in components like
LTA, Medical to compute a figure to claim compliance with minimum wages.
Minimum Wages Act 1948
Wage period
One month.
Less than 1000 employees payment on or before 7th.
More than 1000 payment on or before 10th .
Fixing hours of work and rest :
Fix hours constituting a normal working day. Adults 9 hours.
One rest day in a period of seven days. Weekly off shall
ordinarily be a Sunday.
Minimum Wages Act 1948
Registers and compliances
Muster Roll-cum-Wage register in Form II unless similar registers under
Payment of Wages Act and/or Factories Act are maintained. Sec 27.
Under Sec 28 inspection book to be maintained.
To be preserved for a period of three years from date of last entry.
Payment of Wages
Employer to pay not less than minimum wages
Special Allowance need not be paid separately where consolidated salary
exceeds or is equal to minimum wages.
No deductions other than permissible.
No rationalization can be done in the wage structure to bring in components
like LTA, Medical to compute a figure to claim compliance with minimum
wages.
The Industrial Disputes Act -
Objective :
For investigation and settlement of industrial disputes.
Applicability
The Act extends Industries, one or more workmen.
‘industry’ any business, trade, undertaking, manufacture or calling of employers and
includes any calling, service, employment, handicraft or industrial occupation or
avocation of workman.
employer and employees for the production and/or distribution of goods and services
calculated to satisfy human wants and wishes,
not spiritual or religious,
but inclusive of material things or services, goaded to spiritual bliss, like making on a
large scale prashad or food. It also includes projects and commercial ventures of the
Government.
The Industrial Disputes Act
Sec 2kk ‘Lay off’ :
Every workman who presents for work-not given employment within two hours .
Workman is asked to come in the second half of the shift for that day deemed to
have been laid off for one-half of the day.
Not given employment shall be entitled to full basic wages and DA .
Closure 2cc
An industrial undertaking where more than 50 workmen has to give 60 days notice of
intention to close down the undertaking.
The notice should be served on the appropriate govt stating the reasons.
Compensation : notice pay and compensation of 15 days wages for every year of
completed service as if he has been retrenched.
The Industrial Disputes Act
Retrenchment Sec 2oo
Means termination
for any reason whatsoever,
Other than disciplinary action,
but does not include voluntary retirement or
Superannuation, or the contract of employment contains a stipulation
SEC 2q STRIKE
means cessation of work
or a concerted refusal,
or a refusal under a common understanding,
Can be for a few hours or a part of the day. Not necessary that it should be for the
whole day.
To claim wages strike must be both legal and justified .
The Industrial Disputes Act
2(l)Lockout :
means the temporary closing down of a place of employment or
the suspension of work, or
the refusal by an employer to continue to employ
any number of persons.
Sec 2p Settlements :
signed in conciliation binding on all workmen –
signed by parties outside conciliation –
binding only on parties to the settlement.
Copies must be sent to prescribed authorities
Maternity Benefit Act 1961
Coverage :
All women employees directly or through contractor including probationers,
temporary, casuals, executives, managers.
Employing 10 or more workmen.
No salary ceiling for coverage.
Until a woman qualifies to get Maternity Benefit under ESI she is covered by
Maternity Benefit Act.
Eligibility :
Worked for 80 days in the 12 months immediately preceding the date of
delivery.
Maternity Benefit Act 1961
• Benefits :
12 weeks Maternity Leave on average pay.
Medical Bonus of Rs. 250/-
Additional leave for 1 month for illness arising out of pregnancy, child-
birth etc.
2 nursing breaks till child is 15 months old.
No discharge or dismissal during Maternity Leave.
Six weeks leave for miscarriage & two weeks for Tubectomy.
No limit on the no. of times that a woman can avail of the benefits.
• Contracting out
Contracting out is prohibited under sec 27.
The benefits cannot be restricted by way of an agreement/settlement.
Maternity Benefit Act 1961
• Registers and compliances :
Display Abstract in local language at a conspicuous place on the premises.
Prepare and maintain up to date maternity benefit register in Form 10.
Submit returns in Form 11 on or before Feb 15 each year.
• Restrictions on employers :
Cannot employ a woman during the period of six weeks immediately
following delivery miscarriage.
Pregnant woman cannot be made to to arduous work involving long hours
of standing or any work likely to interfere with her pregnancy during the
period of one month preceding the period of six weeks before expected
date of delivery.
Peros and cons of Compliance-Labor.
It acts as a major power in the hands/favor of the
workers or employees in any Indian
[Link] unions allow workers to have their
owns committee to have any talks with co. Management.
It reduces possible occurrences of conflicts,grieviances
between the workers and managements.
Acts as a tools to avoid any policies implications against
workers by bounding employers to give any prior notice
to them. E.g. Industrial Disputes act-states employers
should notice any change in policy in advance and
employees to go on strike with prior notice time.
Cons of Labor compliance in india
Child labor law-Age limit of child being working is
18, but not followed by industry.
Maternity benefit, and other compensation acts stated
amount of compensation are old and not calculated as
per current [Link] benefit amount is
250 , which has no significance in today.
Minimum wages act, impose minimum wage should
be start 5000 onwards, but no diamond industry
follows it.
Thank you
