1. Arun Davay

2. LEGAL ENVIRONMENT OF BUSINESS Introduction to Law

3. Arun Davay Law is an instrument of social justice of the state that seeks to provide justice, stability & security in the society

4. Arun Davay Law is...

5. Arun Davay Law is...

6. Arun Davay LAW Since time immemorial every society has its own law. Law is a social science – grows with society. Law means different things in different times – highly dynamic concept with core values Dharma (Hindu), Hukum (Islamic), Jus (Roman), Droit (French), Richt (German)

7. Arun Davay SOURCES OF LAW Custom Precedent Legislation Morals and equity Opinions of experts

8. Arun Davay What an MBA student know in Law He should develop a ‘legal sense’ to know his rights and obligations as per relevant law. Remember “Ignorance of law is no excuse”. There are many legislations affecting the business entity today. Basic knowledge of some of the legislations, rules, notifications and clarifications under various provisions of the concerned Acts would help in carrying out the business without legal problems.

9. Arun Davay Some of Acts may be grouped under: General Laws, Procedural Laws Commercial & Corporate Laws Environmental Laws Labor and Industrial Laws Taxation Laws

10. Arun Davay General Laws The Constitution of India [395 Articles divided into 22 Parts and 12 Schedules – fundamental rights, directive principles, constituting ) The Indian Penal Code, 1860 [ general penal code contained in 511 sections divided into 23 chapters) Family Laws /personal laws (Hindu, Muslim & Christian – governing majority, adoption, inheritance of property, marriage, divorce, guardianship etc. in different Acts)

11. Arun Davay Procedural codes The Code of Civil Procedure, 1908 [158 sections and 51 Orders ] The Code of Criminal Procedure, 1973 [484 sections divided into 38 chapters with 2 schedules – 1st schedule about classification of offences and 2nd schedule contains various forms used in following the procedure.] The Indian Evidence Act, 1872 [167 sections divided into 11 parts) deals with proving facts by evidence–oral or written or circumstantial. Facts are the basis on which the rights and liabilities are ascertained to determine the case before hand.

12. Arun Davay Commercial & Corporate Laws The Indian Contract Act, 1872 The Indian Partnership Act 1932 The Negotiable Instruments Act, 1881 The Companies Act, 1956 The Foreign Exchange Management Act, 1999 The Competition Act, 2002 The Securities Exchange Board of India Act, 1992 The Consumer Protection Act, 1986

13. Arun Davay Environmental Laws: The Water (Prevention and Control of Pollution) Act, 1973 The Air (Prevention and Control of Pollution) Act, 1981 The Environment (Protection) Act, 1986

14. Arun Davay Industrial and Labor Laws The Factories Act, 1948 The Industrial Disputes Act, 1947 The Trade Unions Act, 1926 The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 The Employees’ State Insurance Act, 1948 The Industrial Employment (Standing Orders) Act, 1946 The Workmen’s Compensation Act, 1923 The Maternity Benefit Act, 1961 The Minimum Wages Act, 1948 The Payment of Bonus Act, 1965 Shops and Establishment Acts of concerned States.

15. Arun Davay Direct & Indirect Taxation Laws: The Income Tax Act, 1961 The Customs Act, 1962 The Central Excise Act. 1944 The Central Sales Tax Act, 1956 & concerned State General Sales Tax Acts. Host of State Acts & Rules relating to sales, excise etc.

16. Arun Davay

17. THE PAYMENT OF BONUS ACT, 1965 An Act to provide for the payment of Bonus to persons in certain establishments on the basis of profits, production or productivity. Extends to the whole of India. Applies to every establishment wherein 20 or more are employed The Appropriate Govt. shall apply the Act to any other establishment, including a factory to which the Factories Act, 1948 applies, wherein less than 20 workers are employed provided the number of persons employed is not less than 10.

18. Arun Davay Eligibility to Bonus employee whose salary/ wages does not exceed Rs 10000 per month who has worked in the establishment for not less than 30 days Not disqualified to claim bonus due to fraud, theft or any other misconduct Bonus of very person drawing salary between Rs 3500/- and Rs 10000/- per month shall be calculated as if his salary were Rs 3500 pm

19. Arun Davay For calculating the number of working days the days for which the worker has been laid off the days he has been on leave with pay the days he has been absent due to temporary disablement caused by an employment injury the days a woman employee has been on maternity leave shall be taken in to account.

20. Arun Davay Rate of Bonus Minimum :8.33% of salary/wages Maximum 20% of salary/wages Computation of bonus as per Schedule I to IV of the Act. Adjust any interim bonus paid while making payment of the final bonus.

21. Arun Davay However employees of L.I.C., Universities and Educational institutions, Hospitals, Chamber of Commerce, R.B.I., IFCI, U.T.I. Social Welfare institutions are not entitled to bonus under this Act.

22. Arun Davay The Payment of Gratuity Act, 1972 extends to the whole of India. Applies to every factory, mine, plantation and other establishment wherein 10 or more workers are employed.

23. Arun Davay Gratuity is payable to an employee on termination of his employment after he has rendered continuous service for not less than five years on his superannuation on his resignation on his death or disablement due to employment injury or disease

24. Arun Davay The payment of gratuity shall be forfeited to the extent of the damage or loss caused by the employee to the property of the employer where the service of the employee is terminated due to misconduct

25. Arun Davay Salary ceiling The Amendment Act of 1994 removed the salary ceiling of an employee, but the maximum gratuity payable shall be Rs 3.5 lakh.

26. Arun Davay THE INDUSTRIAL DISPUTES ACT, 1947 An Act to make provision for the investigation and settlement of industrial disputes, and for certain other purposes. An Act to make provision for the investigation and settlement of industrial disputes, and for certain other purposes. It extends to the whole of India It extends to the whole of India

27. Arun Davay Industrial dispute Any dispute or difference 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. Any dispute or difference 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.

28. Arun Davay AUTHORITIES UNDER THIS ACT Works Committee Works Committee Conciliation officers Conciliation officers Boards of Conciliation Boards of Conciliation Courts of Inquiry Courts of Inquiry Labour Courts Labour Courts Tribunals Tribunals National Tribunals National Tribunals

29. Arun Davay Works Committee Where?: Establishments with 100 or more workers Members: Equal number of representatives of the Employer and Employees Objective: promotion of good relationship between employer and employee(s)

30. Arun Davay Conciliation officers Appointed by the appropriate Government Duty: Settlement of industrial disputes. Nature : Appointed for a specified area or for specified industries in a specified area or for one or more specified industries and either permanently or for a limited period.

31. Arun Davay Boards of Conciliation Appointed by the appropriate Government as occasion arises for settlement of disputes. Board shall consist of an independent Chairman and two or four other members in equal numbers to represent the parties to the dispute

32. Arun Davay Labour Courts Labour Courts are constituted by the appropriate Govt. for the adjudication of industrial disputes relating to any matter specified in the Second Schedule and for performing such other functions as may be assigned to them under this Act.

33. Arun Davay Tribunals Tribunals are constituted by the appropriate Govt. for the adjudication of industrial disputes relating to any matter specified in the Second Schedule or the Third Schedule and for performing such other functions as may be assigned to them under this Act.

34. Arun Davay National Tribunals National Tribunals are constituted by the Central Government for the adjudication of industrial disputes which, in the opinion of the Central Government, involve questions of national importance or are of such a nature that industrial establishments situated in more than one State are likely to be interested in, or affected by such disputes.

35. Arun Davay Matters within the Jurisdiction of Labour Courts (the II Schedule) 1.The propriety or legality of an order passed by an employer under the standing orders; 1.The propriety or legality of an order passed by an employer under the standing orders; 2.The application and interpretation of standing order; 2.The application and interpretation of standing order; 3.Discharge or dismissal of workmen including re-instatement of, or grant of relief to, workmen wrongfully dismissed; 3.Discharge or dismissal of workmen including re-instatement of, or grant of relief to, workmen wrongfully dismissed; 4.Withdrawal of any customary concession or privilege; 4.Withdrawal of any customary concession or privilege; 5.Illegality or otherwise of a strike or lock- out; and 5.Illegality or otherwise of a strike or lock- out; and 6.All matters other than those specified in the Third Schedule. 6.All matters other than those specified in the Third Schedule.

36. Arun Davay Matters within the Jurisdiction of Industrial Tribunals (the III schedule) 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;

37. Arun Davay III schedule (contd.) 7.Classification by grades; 8.Rules of discipline; 9.Rationalisation; 10.Retrenchment of workmen and closure of establishment; and 11.Any other matter that may be prescribed.

38. Arun Davay Prohibition of strikes and lock outs Not to strike without giving six weeks notice of strike and during the pendency of any conciliation proceedings Not to declare lock-out without giving to the employees six weeks notice of lock out and during the pendency of any conciliation proceedings A strike or lock-out shall be illegal if it is commenced or declared in contravention of the above. Not to support of any illegal strike or lock- out

39. Arun Davay LAY-OFF AND RETRENCHMENT ►N►N►N►No workman (other than a badli workman or a casual workman) whose name is borne on the muster-rolls of an industrial establishment wherein 50 or more workers are employed shall be laid-off by his employer except with the prior permission of the appropriate Government.

40. Arun Davay Lay off compensation aa workman (other than a badli workman or a casual workman) who has completed one year of continuous service under an employer shall be paid Lay off compensation  Lay off compensation shall be equal to fifty per cent of the wages (Basic + DA) LLay off compensation need not be paid for the weekly holidays which may intervene

41. Arun Davay Retrenchment of workmen  No workman who has been in continuous service for not less than one year shall be retrenched without giving one month’s notice (three months notice wherein not less than 50 workers are employed) in writing indicating the reasons for retrenchment or  if no notice is given, wages in lieu of such notice.  Retrenchment of workmen employed in an establishment wherein not less than 50 workers are employed requires permission from the appropriate Govt.

42. Arun Davay Compensation to workmen in case of closing down of undertakings Compensation be paid as if workmen are retrenched However no compensation is payable if the establishment is closed down on account of unavoidable circumstances beyond the control of the employer

43. Arun Davay These shall not constitute circumstances beyond the control… financial difficulties (including financial losses); orfinancial difficulties (including financial losses); or accumulation of undisputed off stocks; oraccumulation of undisputed off stocks; or the expiry of the period of the lease or license granted to it; orthe expiry of the period of the lease or license granted to it; or in case where the undertaking is engaged in mining operations, exhaustion of the minerals in the area in which operations are carried onin case where the undertaking is engaged in mining operations, exhaustion of the minerals in the area in which operations are carried on

44. Arun Davay Procedure for retrenchment and re employment Retrench the last worker to be appointed under a particular category first For re-employment, retrenched worker shall have preference over other persons

45. Arun Davay UNFAIR LABOUR PRACTICES On the part of employers threatening workmen with discharge or dismissal, if they join a trade union threatening a lock-out or closure, if a trade union is organised granting wage increase to workmen at crucial periods of trade union organisation, with a view to undermining the efforts of the trade union at organisation an employer taking an active interest in organising a trade, union of his workmen

46. Arun Davay Unfair-employer (contd.) Unfair-employer (contd.) ► To establish employer-sponsored trade unions of workmen ► discharging or punishing a workman, because he urged other workmen to join or organise a trade union ► discharging or dismissing a workman for taking part in any strike (not being a strike which it deemed to be an illegal strike under this Act) ► changing seniority rating of workmen because of trade union activities

47. Arun Davay Unfair-employer (contd.) Unfair-employer (contd.) refusing to promote workmen to higher posts on account of their trade union activities refusing to promote workmen to higher posts on account of their trade union activities giving unmerited promotions to certain workmen with a view to creating friction amongst other workmen, or to undermine the strength of their trade union giving unmerited promotions to certain workmen with a view to creating friction amongst other workmen, or to undermine the strength of their trade union discharging office bearers or active members of the trade union on account of their trade union activities discharging office bearers or active members of the trade union on account of their trade union activities

48. Arun Davay Unfair-employer (contd.) Unfair-employer (contd.) To discharge or dismiss workmen – by way of victimisation; by way of victimisation; by falsely implicating a workman in a criminal case on false or fabricated evidence; by falsely implicating a workman in a criminal case on false or fabricated evidence; on untrue allegations of absence without leave; in utter disregard of the principles of natural justice in the conduct of domestic enquiry or with undue haste; for misconduct of a minor or technical character, without having any regard to the nature of the particular misconduct or the past record of service of the workman.

49. Arun Davay UNFAIR LABOUR PRACTICES On the part of workmen  advise, support or instigate any strike deemed to be illegal under this Act.  coerce workmen to join a trade union or refrain from joining any trade union,  picket in such a manner that non- striking workmen are physically debarred from entering the work places  indulge in acts of force or violence or intimidation in connection with a strike against non-striking workmen or against managerial staff

50. Arun Davay Unfair- employee (contd.) Unfair- employee (contd.) For a recognised union to refuse to bargain collectively in good faith with the employer. For a recognised union to refuse to bargain collectively in good faith with the employer. To indulge in coercive activities against certification of bargaining representative. To indulge in coercive activities against certification of bargaining representative. To stage, encourage or instigate such forms of coercive actions as willful "go slow", squat on the work premises or "gherao" of any of the members of the managerial or other staff. To stage, encourage or instigate such forms of coercive actions as willful "go slow", squat on the work premises or "gherao" of any of the members of the managerial or other staff. To stage demonstrations at the residences of the employers or the managerial staff members. To stage demonstrations at the residences of the employers or the managerial staff members.

51. Arun Davay FACTORIES ACT, 1948.

52. Arun Davay Act extends to the whole of India. Applies to every factory wherein 10 or more workers are or were employed, if run with power and 20 or more workers are or were employed, if run without power. Application to factories with fewer workers u/s 85

53. Arun Davay PROVIDES for  Hours of work (adult) not to exceed 48 hours in a week or 9 hours in a day.  Relaxation: Where an adult worker is engaged in urgent repairs.  Payment of Overtime wages for overstay at workplace @ twice the ordinary rate of wages.  ** Provision relating to hours of work not applicable to supervisory staff.  Weekly Holiday: No work for more than 10 days without a day of rest.  Intervals of rest: half an hour for 5 hours of work  No child (who has not attained the age of 15 years) be permitted to work.  Prohibition of employment of Women: No woman shall be employed in any factory for more than 9 hours in any day or between 7 pm and 6 am.

54. Arun Davay Leave with Wages @ 1day for every 20 days provided ----- 240 days of work during preceding year. 240 days of work during preceding year. Days of lay off, paid holidays or leave days considered Encashment of unavailed leave: Encashable at the present rate of wages.

55. Arun Davay EMPLOYER TO KEEP THE FACTORY PREMISES CLEAN white washing at least once in every 14 months repainting or revarnishing every 5 years ensure proper disposal of wastes and effluents Record the dates on which white washing, painting or varnishing done in a register in FORM 7. Ensure provision of sufficient number of Latrines and urinals – separate for gents and ladies Ensure spittoons are provided at adequate places. Ensure workplace has adequate ventilation Avoid overcrowding – ensure 500 cubic feet of space for every worker without reference to any space which is more than 14 feet above the level of the floor of the room. Ensure proper lighting- artificial or natural or both. Ensure supply of uninterrupted supply of Drinking Water. Where the no. of workers is more than 250, provision for cold water in every lunch room, rest room and canteen shall be ensured.

56. Arun Davay EMPLOYER TO LOOK AFTER THE WELFARE OF EMPLOYEES ► Washing facility separately for women and men ► Separate rooms for men and women for drying of clothes ► Separate rest rooms for men and women ► First Aid boxes equipped with prescribed medicines ► Ambulance room where 500 or more are employed ► Canteen for use of workers where 250 or more are employed (150 under Plantation Labour Act) ► Lunch room where 150 or more are employed ► Crèches where 30 or more women are employed ► Appoint WELFARE OFFICER (S) where 500 or more are employed (300 under PLA) ► The duties, qualification and conditions of service of such welfare officers shall be in accordance with the rules of the respective State Govt. ► NOTICE OF DANGEROUS OPERATIONS

57. Arun Davay THE INDUSTRIAL EMPLOYMENT (STANDING ORDER) ACT, 1946 Defines the terms and conditions of service between the employer and his employees. Defines the terms and conditions of service between the employer and his employees. Applies to every industrial establishment wherein 100 (in some States 50)or more workers are employed Applies to every industrial establishment wherein 100 (in some States 50)or more workers are employed The Act extends to the whole of India The Act extends to the whole of India

58. Arun Davay Standing Order drafted shall provide for  Date on which the standing orders shall come in to force and shall remain in force  Definitions  Classification of workmen as Permanent, Probationer, Badlis, Casual and Trainees

59. Arun Davay contd Obligations – not to carryon any other business for gain or to take admission in educational institution without permission to observe strict secrecy of company matters not to take photographs, drawing or documents of the process of manufacture of the company not to carry any lethal weapon, explosive or article dangerous to life or property to follow safety rules in force to inform any change in the address etc

60. Arun Davay contd contd Medical examination and aid in case of accident Identification of workmen and issue of Identity cards Working time for different categories of workmen Record of age, qualification and experience Entry, exit and liability for security checking Shift working and weekly off Attendance and late coming Methods of applying for different kinds of leave and extension of leave Action for unauthorised absence

61. Arun Davay THE MATERNITY BENEFIT ACT, 1961 The Act extends to the whole of India except Jammu & Kashmir The Act extends to the whole of India except Jammu & Kashmir Applies to every factory, shop or establishment Applies to every factory, shop or establishment Woman entitled to maternity benefit not withstanding the application of the Employees State Insurance Act, 1948 Woman entitled to maternity benefit not withstanding the application of the Employees State Insurance Act, 1948

62. Arun Davay Employer to ensure…… No woman works during the six weeks immediately following the day of her delivery or her miscarriage No woman does any arduous work during the period of ten weeks from the expected date of delivery Not to discharge or dismiss a woman during her pregnancy

63. Arun Davay Benefit 12 weeks leave of which not more than 6 weeks shall precede the date of her expected delivery The benefit to be paid @ average rate of wages for the three months preceding her maternity leave In case of miscarriage, 6 weeks leave with pay at the same rate as applicable to maternity benefit.

64. Arun Davay THE MINIMUM WAGES ACT, 1948 AN ACT TO PREVENT “SWEATED LABOUR AND EXPLOITATION OF LABOUR” AN ACT TO PREVENT “SWEATED LABOUR AND EXPLOITATION OF LABOUR” The Act extends to the whole of India The Act extends to the whole of India Requires the Central and State Govt. to fix minimum rates of wages in certain scheduled employment. Requires the Central and State Govt. to fix minimum rates of wages in certain scheduled employment. Minimum wages fixed REVISED from time to time Minimum wages fixed REVISED from time to time

65. Arun Davay Responsibility of the Employer  to follow the directions and fix wages of the workers at the rate not less than the one fixed  to maintain Register of Wages in form XI showing rate of wages payable, actual amount paid, attendance & overtime, deductions for EPF, ESI and other, net amount paid, date of payment and signature of respective employee.  Wages slip in form XIII showing the above details to be given to every employee.

66. Arun Davay PAYMENT OF WAGES ACT, 1936 An Act to regulate the payment of wages to certain classes of persons An Act to regulate the payment of wages to certain classes of persons Extends to the whole of India Extends to the whole of India Responsibility of payment wages rests with the employer Responsibility of payment wages rests with the employer Employer to fix Wage Period Employer to fix Wage Period No wage period shall exceed one month. No wage period shall exceed one month.

67. Arun Davay Time of Payment of wages 7 th day of wage month where less than 1000 are working 10 th day where more than 1000 are working No payment in KIND

68. Arun Davay Permissible deduction from Wages fines for absence from duty for damage caused to the property of the employer for the amenities provided, like house accommodation for recovery of advance or adjusting over payment of wages towards EPF, ESI, Labour Welfare Fund and similar deductions permitted under any Act or the Standing Orders of the establishment for Life Insurance/ general insurance policies and Housing loan.

69. Arun Davay THE EQUAL REMUNERATION ACT, 1976 Act provides for the payment of equal remuneration to men and women Act provides for the payment of equal remuneration to men and women Extends to the whole of India Extends to the whole of India Act makes it obligatory on the part of employer to pay equal remuneration to men and women workers for same work or work of a similar nature. Act makes it obligatory on the part of employer to pay equal remuneration to men and women workers for same work or work of a similar nature. In order to make the wages equal, prevailing wages shall not be reduced but the higher rate shall be maintained. In order to make the wages equal, prevailing wages shall not be reduced but the higher rate shall be maintained.

70. Arun Davay No discrimination No discrimination No discrimination while making recruitment for the same work or work of a similar nature, except where the employment of women in such work is prohibited or restricted by or under any law for the time being in force. No discrimination in any condition of service subsequent to recruitment such as promotions, training or transfer.

71. Arun Davay THE APPRENTICES ACT, 1961 The Act extends to the whole of India. The Act extends to the whole of India. Applies to those apprentices who are undergoing apprenticeship training in designated trades. Applies to those apprentices who are undergoing apprenticeship training in designated trades. From time to time, the Central Govt. has specified the designated trades. From time to time, the Central Govt. has specified the designated trades.

72. Arun Davay Duties of the employer Make suitable arrangements for imparting practical training Provide for basic training. Where an employer employs 500 or more workers, the basic training shall be imparted in separate part of the workshop building or in a separate building set up by the employer. * the employer may get easy loan from the Govt. for construction of building for conducting training classes

73. Arun Davay EMPLOYERS to ensure EMPLOYERS to ensure Placement of Training Officer with suitable qualification Placement of Training Officer with suitable qualification Payment of stipend at a rate not less than the prescribed minimum rate Payment of stipend at a rate not less than the prescribed minimum rate Not to pay on the basis of piece work Not to pay on the basis of piece work Not to require to take part in any output bonus or other incentive scheme Not to require to take part in any output bonus or other incentive scheme

74. Arun Davay WORKMEN’S COMPENSATION ACT-1923

75. Arun Davay THE WORKMEN’S COMPENSATION ACT, 1923 The Act provides for payment of compensation to the worker injured during the course of employment or contracted by any occupational disease peculiar to that employment The Act provides for payment of compensation to the worker injured during the course of employment or contracted by any occupational disease peculiar to that employment Act extends to the whole of India. Act extends to the whole of India.

76. Arun Davay The amount of compensation for accidents resulting in death, an amount equal to fifty per cent of the monthly wages of the deceased workman multiplied by the relevant factor; or an amount of eighty thousand rupees, whichever is more * for permanent total disablement, an amount equal to sixty per cent of the monthly wages of the injured workman multiplied by the relevant factor, or an amount of ninety thousand rupees, whichever is more.

77. Arun Davay The maximum compensation as per W.C. Amendment Act 2000 Fatal Injury - Rs.4,57,080 Permanent Total Disablement - Rs.5,48,496 Permanent Partial Disablement - According to incapacity caused Temporary Disablement - Rs. 2000 per month upto a period of 5 years

78. THE EMPLOYEE’S STATE INSURANCE ACT 1948

79. ESI Scheme … ESI Scheme for India is an integrated social security scheme tailored to provide Social Production to workers and their dependents, in the organised sector, in contingencies, such as Sickness, Maternity and Death or Disablement due to an employment injury or Occupational hazard

80. Arun Davay ESI Act * Applies to factories and establishments functioning in the notified area and consisting of 10 or more employees. * Provides for health care and cash benefits in cases of sickness, maternity and employment injury. * The Act absolved the employers of their obligations under the Maternity Benefit Act, 1961 and Workmen’s Compensation Act 1923.

81. Finances … The Scheme is primarily funded by contribution raised from Insured Employees and their employers Payable such as 1. Employees’ Contribution – 1.75% of the Wages 2. Employers’ Contribution – 4.75% of the Wages TOTAL - 6.5 % of the Wages Employees in receipt of an average daily wage of Rs.40/- or Less, are exempted from Payment of their share of contribution (w.e.f 8.4.00) but are entitled to all social security benefits under the Scheme.

82. Arun Davay Contribution  Employees’ contribution. 1.75% of wages  Employers’ contribution. 4.75 % of wages  Employees receiving a daily average wage upto Rs.70/-(w.e.f 1-8-07) are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.  pay contribution within 21 days.

83. Benefits to Employees … ESI Scheme Major Social Security Benefits in Cash and Kind include … 1. Medical Benefit – for self & Family 2. Sickness Benefit – for self 3. Maternity Benefit - for self 4. Disablement Benefit a). Temporary Disablement Benefit – for self b). Permanent Disablement Benefit – for self 5. Dependents’ Benefit – for dependents in case of death due to employment injury

84. In addition, the Scheme also provides some other need based benefits to insured workers. These are: i). Funeral Expenses – to a person who performs the last rites of IP ii). Rehabilitation allowances – for self iii). Vocational Rehabilitation - for self iv). Old age Medicare – for self and spouse v). Medical Bonus – for insured women and IP’s wife Benefits to Employees …

85. Arun Davay EMPLOYEES PROVIDENT FUND AND MISC. PROVISIONS ACT, 1952 An Act to provide for the institution of provident funds, pension funds and deposit linked insurance fund for the employees in the factories and other establishments An Act to provide for the institution of provident funds, pension funds and deposit linked insurance fund for the employees in the factories and other establishments Extends to the whole of India except the State of Jammu and Kashmir Extends to the whole of India except the State of Jammu and Kashmir

86. Arun Davay Applicability Applies to all factories and establishments in which 20 or more are employed Applies to all factories and establishments in which 20 or more are employed Continuity of application Continuity of application Exemption – Exemption – Where employees get benefits in the nature of provident fund or old age pension fund from the establishment which are not less favourable than the benefits under the Act. Where employees get benefits in the nature of provident fund or old age pension fund from the establishment which are not less favourable than the benefits under the Act.

87. Arun Davay Schemes under the Act Three beneficial schemes- 1.Employees Provident Fund Scheme 1952 2.Employees Pension Scheme 1995 3.Employees Deposit Linked Insurance 1976

88. Arun Davay membership An employee at the time of joining the employment and getting wages up to Rs.6500/- is required to become a member. an employee is eligible for membership of fund from the very first date of joining a covered establishment.

89. Arun Davay Contribution to EPF Employees’ share : 12% of the Basic + DA Employees’ share : 12% of the Basic + DA Employer’s contribution : 12% to be deposited as : Employer’s contribution : 12% to be deposited as : 8.33% to be deposited in Pension Fund A/C No 10 and 8.33% to be deposited in Pension Fund A/C No 10 and the balance, ie, 3.67% to be deposited in Provident Fund A/C No 01 along with Employees’ share of 12% the balance, ie, 3.67% to be deposited in Provident Fund A/C No 01 along with Employees’ share of 12%

90. Arun Davay CONTRIBUTION TOWARDS EPF & PENSION FUND EmployeeEmployer Provident FundPension Fund 12% 8.33%3.67% Continued …

91. Arun Davay Benefits to employees Provident Fund Benefits Pension Benefits Death Benefits

92. Arun Davay Provident Fund Benefits –Employer also contributes to Members’ PF @ 3.67% (1.67% in case of sick industry - eg: beedi) –EPFO guarantees the Employer contribution and Govt. gives a decent interest to PF accumulations –Member can withdraw from this accumulations to cater financial exigencies in life - No need to refund unless misused On resignation, the member can settle the account. i.e., the member gets his PF contribution, Employer Contribution and Interest

93. Arun Davay Pension Benefits –Pension to Member –Pension to Family (on death of member) –Scheme Certificate This Certificate shows the service & family details of a memberThis Certificate shows the service & family details of a member This is issued if the member has not attained the age of 58 while leaving an establishment and he applies for this certificateThis is issued if the member has not attained the age of 58 while leaving an establishment and he applies for this certificate Member can surrender this certificate while joining another establishment and the service stated in the certificate is added with the service he is gaining from the new establishment.Member can surrender this certificate while joining another establishment and the service stated in the certificate is added with the service he is gaining from the new establishment. After attaining the age of 50 or above, the member can apply for Pension by surrendering this scheme certificate (if total service is at least 10 years)After attaining the age of 50 or above, the member can apply for Pension by surrendering this scheme certificate (if total service is at least 10 years) This is a better choice than Withdrawal Benefit, that if a member dies holding a valid scheme certificate, his family will get pension (Death when NOT in service)This is a better choice than Withdrawal Benefit, that if a member dies holding a valid scheme certificate, his family will get pension (Death when NOT in service)

94. Arun Davay Death Benefits Provident Fund Amount to Family (or to Nominee)Provident Fund Amount to Family (or to Nominee) Pension to Family (or to Parent / Nominee)Pension to Family (or to Parent / Nominee) Capital Return of PensionCapital Return of Pension Insurance (EDLI) amount to Family (or to Nominee)Insurance (EDLI) amount to Family (or to Nominee) No amount is taken from Member for this facility. Employer contributes for this. No amount is taken from Member for this facility. Employer contributes for this. Nominee is basically determined as per the information submitted by the member at this office through FORM-2Nominee is basically determined as per the information submitted by the member at this office through FORM-2

95. Arun Davay The Trade Unions Act, 1926 An act to provide for the registration of Trade Unions and in certain respects to define the law relating to registered Trade Unions. An act to provide for the registration of Trade Unions and in certain respects to define the law relating to registered Trade Unions. It extends to the Whole of India It extends to the Whole of India

96. Arun Davay Registration The minimum number of workers to form a registered Trade Union is 10% or 100 whichever is less, subject to a minimum of 7 workers. Ensure that the number of members does not fall down the above requirement.

97. Arun Davay THE CONTRACT LABOUR ( REGULATION & ABOLITION ) ACT, 1970 [Act 37 of 1970 as amended by Act of 1986 2 ]

98. Arun Davay Who is a Principal employer In a factory, the owner or the occupier of the factory & where a person has been named as Manager under the Factories Act, 1948 Who is a Contractor A person who undertakes to produce a given result for the establishment through contract labour or who supplies contract labour for any work of establishment & includes a sub contractor. Who is a Contract labor Any worker will be a contract labour when he is hired for work of establishment through a contractor, with or without the knowledge of the principal employer