Labour Act

E.S.I. Act. (The Employee State Insurance Act. 1978)

Purpose & Object

The Employees' State Insurance Act, 1948 is one of the most prominent social security legislations in India. It has been enacted to provide certain benefits like medical, sickness, maternity and employment injury benefits to employees. The Act is administered by the Employees' State Insurance Corporation, the premier social security organization in India.

ESI Applicability

• The Employees' State Insurance Act, 1948 extends to whole of India;
• It applies to all factories / establishments running with the aid of power and employing 10 or more persons and to those factories which run without the aid of power and employing 20 or more persons;

ESI Eligibility

Employees drawing salary / wages not exceeding Rs. 21,000/- per month are covered under the provisions of ESI Act.

ESI Benefits

• Medical Benefits
• Maternity Benefits
• Dependants' Benefits
• Benefits against Sickness
• Benefits against Disablement
• Funeral Expenses

Rate of ESI Contribution

The Employees' Provident Fund Act, 1952

Purpose & Object

The Employees' Provident Funds & Miscellaneous Provisions Act, 1952 has been enacted with the main objective of protecting the interest of the employees after their retirement and their dependents after death of the employee. The Act provides insurance to workers and their dependents against risks of old age, retirement, discharge, retrenchment or death.

EPF Applicability

• The Employees' Provident Funds & Miscellaneous Provisions Act, 1952 extends to whole of India except the state of Jammu & Kashmir.
• It applies on every establishment employing 20 or more persons & engaged in industry specified in Schedule I of the Act or any other activity notified by the Central Government.
• It applies to all departments / branches of an establishment wherever situated.
• Any establishment employing even less than 20 persons can be covered voluntarily under section 1(4) of the Act.

EPF Eligibility

• Employees drawing salary / wages at the time of joining up-to Rs. 6,500/- per month are governed by the provisions of the Act;
• Employees drawing salary / wages more than Rs. 6,500/- per month may also be brought under the purview of the Act at the discretion of the management and by furnishing a joint undertaking to the Provident Fund Commissioner;
• Employees engaged through the Contractor in or in connection with the work of an establishment are also covered under the purview of the Act.

Monthly Contribution	Employees’ Provident Fund
By Employer	12% of Basic Wages, Dearness Allowance, Cash Value of Food Concession & Retaining Allowance plus Administrative Charges	0.50% of Basic Wages, Dearness Allowance, Cash Value of Food Concession & Retaining Allowance (subject maximum wage limit of Rs. 6,500/-) plus Administrative Charges
By Employee	12% of Basic Wages, Dearness Allowance, Cash Value of Food Concession & Retaining Allowance
By Central Government	NIL

EPF for International Workers

Background:

In October 2008, the Ministry of Labour and Employment made fundamental changes in Employees Provident Fund (“EPF”) and Employees Pension Schemes (“EPS”). The ambit of both the schemes was broadened to compulsorily cover International Workers(“IWs”) under the purview of India’s social security regime. Thereafter on a couple of occasions the EPFO has issued Frequently Asked Questions (‘FAQs’) to streamline and clarify various questions and issues that were originating out of the new legislation. The schemes were further modified in September 2010, and stringent rules relating to Provident Fund (“PF”) withdrawal by IWs, upon attainment of 58 years of age were introduced. Contribution:

• The contribution in respect of all IWs is payable on full salary, irrespective of where the salary is paid.
• Effective September 11, 2010, diversion of 8.33% from employer’s contribution to the Pension Fund will be calculated on the entire monthly salary (as opposed to the earlier ceiling of INR 6, 500 per month). Compliance:

Outbound expatriates of Indian nationality are to be treated as IWs with effect from the date of commencement of Certificate of Coverage (“COC”) issued by EPFO, Head Office.

• Member will continue to be an IW, till the time, final settlement is made in accordance with the provisions of the scheme.
• All foreign nationals employed in an establishment are to be enrolled as IWs, other than an ‘excluded employee’, on the basis of COC issued by Competent Agency under an SSA with India.
• For compliance and settlement purpose, IWs has to be flagged separately and a separate register in respect of IWs may be maintained by each office.

Procuring a COC for outbound worker:

A ‘COC’ is issued in respect of an employee, who is posted by his Indian employer for an assignment to a country with whom India has an SSA. Procedure for obtaining COC in India:

• The employee is required to submit (through his employer) an application in the prescribed format to the Regional Provident Fund Commissioner(“RPFC”).
• The RPFC post verification of the application shall forward the same to the International Worker’s Unit (IWU) at the head office for issue of COC.
• The IWU issues COC to the concerned RPFC for handing over to the employer.

Settlement of PF Claims:

Instructions have been given to the PF officials to ensure that PF accumulations of IWs are settled only in the following circumstances :

• On retirement, at any time after attaining the age of 58 years; or
• On retirement on permanent disability due to bodily or mental infirmity(includes TB, leprosy and cancer); or
• In respect of the member covered under an SSA, on such grounds asspecified in such SSA
Separately, EPFO has also clarified that the special provisions relating to the IWs must also be followed by Exempted Establishments given exemption under Section 17 of the Employee’s Provident Fund and Miscellaneous Provisions Act, 1952. Further, the PF officers are also instructed to regularly scrutinize the reports / returns in respect of IWs to detect cases of evasion.

The Contract Labour (Regulation & Abolition) Act, 1970

Purpose & Object

The Contract Labour (Regulation & Abolition) Act, 1970 has been enacted to regulate the employment of contract labour and to bring them at par with directly employed labour with regard to the working conditions and other benefits and also to provide for abolition of contract labour in certain circumstances.

Applicability

• Contract Labour (Regulation & Abolition) Act, 1970 extends to whole of India.
• Applicable to all industrial and commercial establishments

Registration / License

Registration:

Every establishment to which this Act applies shall get itself register with the registering authority.

License:

Every contractor / sub-contractor to whom this Act applies shall obtain a license from the licensing authority and such contractor / sub-contractor shall undertake or execute work through contract labour in accordance with terms of license issued by the licensing officer.

Obligation of Payment

• Contractor / Sub-contractor shall be responsible for payment of wages to each worker employed by him as contract labour;
• Every such payment to contract labour shall be paid in the presence of authorized representative of Principal Employer;
• In case the Contractor / Sub-contractor fails to make payment of wages within the prescribed period or makes short payment then, the Principal Employer shall be liable to make payment of wages in full or the unpaid balance due, as the case may be, to the contract labour employed by the Contractor / Sub-contractor.

The TN Shops & Establishments Act, 1948

Purpose & Object

Shops and Establishment Acts have been enacted by the states to regulate conditions of work and to provide for statutory obligations of the employers and rights of the employees in un-organized sector of employment such as shops, commercial establishments, residential hotels, restaurants, eating houses, theatres and other establishments in their jurisdiction.

Applicability

It is applicable to all persons employed in an establishment with or without wages, except the members of the employers’ family. Salient Features

• Provides for compulsory registration of shops / establishments
• Provides for communication of closure of shops / establishments
• Lays down the hours of work - per day & week; guidelines for rest interval, opening and closing hours, closed days, national and religious holidays, overtime work
• Lays down Rules for employment of children, young persons and women; annual leaves, maternity leaves, sickness and casual leaves; employment and termination of service etc.
• Provides for maintenance of statutory registers & records and display of notices
• Provides for obligations of employers as well as employees.

Almost all states have enacted their own Shops and Establishment Acts. However, many states have adopted laws of a different state governing Shops & Establishments.

The Payment of Bonus Act, 1965

Purpose & Object

The Payment of Bonus Act, 1965 has been enacted to provide & regulate the payment of bonus to employees in certain specified establishments either on the basis of profits or on the basis of productivity of the establishment.

Applicability

• Payment of Bonus Act, 1965 extends to whole of India.
• Payment of Bonus Act, 1965 applies to every factory and to every other establishment in which 20 or more persons are employed on any day during an accounting year;
• The Government may also apply the act on any factory or establishment in which has less than 20 but not less than 10 persons are employed;
• Payment of Bonus Act, 1965 is applicable on every employee whether doing any skilled, unskilled, manual, supervisory, managerial, administrative, technical or clerical work for hire or reward and whether the terms of employment are express or implied.

Eligibility

• Payment of Bonus Act, 1965 is applicable on employees drawing wages / salary up-to 10,000/- per month.
• Only those employees are entitled for bonus, who have worked for at least 30 working days in an accounting year.

Rate of Bonus

• 8.33% of the salary or wages earned by an employee in a year or Rs. 100/-, whichever is higher.
• In case allocable surplus exceeds the amount of provision of minimum bonus, the employer shall be bound to pay maximum bonus not exceeding 20% of the salary or wages earned by employees.
• In case allocable surplus exceeds the maximum bonus (20% of the salary or wages earned by employees), the excess surplus shall be carried forward for being set on in the succeeding accounting years up to and inclusive of the 4th accounting year.

Organisation

The Tamil Nadu Labour Welfare Board was constituted by the Government of Tamil Nadu in the year 1971 by an executive order of the Government (G.O. Ms No.222 Labour Dept, dated: 20.2.1971) with the view to promote the Welfare of the employees and their dependants. The Tamil Nadu Labour Welfare Fund Act, 1972 passed by the State and was given effect from 1.1.1973 The Statutory Labour Welfare Board was formed with effect from 1.4.1975 with the Minister incharge of Labour as Chairman, five representatives of employees, five representatives of employers, three members of State Legislative Assembly, four Official members and two women representatives.

Functions of the board

The important provisions of the Act deals with
• Collection of Labour Welfare Fund
• Vesting and Application of the Fund.
• Constitution of the Board
• Terms of Members
• Power to appoint committee
• Functions of the Board
• Unpaid Accumulations
• Deposit of Funds
• Placing of Accounts and Audit Report before the State Legislature
• Power to make Rules and Regulations
The Tamilnadu Labour Welfare Fund Rules 1973 deals with
• Payment of Fines and Unpaid Accumulations by the Employer
• Maintenance and Audit of Accounts
• Budget of the Board
• Additional Expenditure
• Mode of Payment
• Payment of Contributions
• Meetings of the Board
• Quorum
• Administrative and Financial Powers of the Secretary
• Publication of Annual Report
• Maintenance of the following Registers by the Employers
Form A- Statement showing the particulars of contribution amount paid to the Secretary, Tamil Nadu Labour Welfare Board.
Form B- Register of Wages
Form C- Register of Fines and Unpaid Accumulations

Welfare Fund

The Government constituted Labour Welfare Fund, as per section 3, to which the following are credited to-
• a) All Unpaid Accumulations due to workers
• b) All fines realised from the workers
• c) Deduction made under the proviso to Sub-section(2) of section 9 of the Payment of Wages Act,1936 and the proviso to Sub-section (2) of section 36 of the Tamil Nadu Shops and Establishments Act, 1947.
• d) Contribution from Employers and Employees
• e) Any interest by way of penalty, paid under Section 14 of the Tamil Nadu Labour Welfare Fund Act, 1972.
• f) Any Voluntary Donation.
• g) Any amount raised by the Board from other sources to augment the resources of the Board.
• h) Any fund transferred under Sub-section 5 of Section 17 of the Tamil Nadu Labour Welfare Fund Act, 1972.
• i) Any sum borrowed under Section 18 of Tamil Nadu Labour Welfare Fund Act,1972
• j) Any unclaimed amount credited to the Government in accordance with the rules made under the Payment of Wages Act, 1936 and Minimum Wages Act, 1948.
• k) Grants or Advances made by the Government.
• l)All fines imposed and realised from Employers by Courts for violation of Labour Laws less the deduction made by Courts towards administrative expenses and all compounding fees levied and collected by the Labour Department for violation of Labour Laws Contribution To The Fund By Employee And Employer (Sec 15) and rules 11 (a):
Every Employee contributes Rs.10/- per year and every Employer in respect of and such Employee, contributes Rs.20/- per year to the Fund and the Government in respect of each such employee contributes Rs.10/- per year to the Fund. (Amendment to Tamil Nadu Labour Welfare Fund Rules, 1973 (G.O. Ms.No.16, Labour and Employment (G-2) dated 20.01.2015)

Labour Welfare Fund - Rate of Contribution - Yearwise:

(5 years)

year	Employer's Contribution	Employees Contribution	Government Contribution	Labour and Employment G.O.No. and Date
1973-1981 (9 years)	Re.1/-	Rs. 2/-	Nil	---
1982-1995 (14 years)	Rs. 2/-	Rs. 4/-	Rs. 2/-	No. 1933/14.11.1982
1996-1997	(2 years)	Rs. 3/-	Rs. 6/-	No. 67 / 28.05.1996
1996-1997	(2 years)	Rs. 3/-	Rs. 6/-	No. 67 / 28.05.1996
1998-2008 (11 years)	Rs. 5/-	Rs. 10/-	Rs. 5/-	No. 159 / 07.12.1998
2009-2014	Rs. 7/-	Rs.14/-	Rs.7/-	No. 91 / 10.07.2009
2015 onwards	Rs.10/-	Rs.20/-	Rs.10/-	No.16 / 20.01.2015

Schemes

The Tamil Nadu Labour Welfare Board is implementing various welfare schemes for the benefit of the workers who contribute to Labour Welfare Fund. Employees who draws monthly salary not exceeding Rs.15,000/- are eligible to avail these schemes.

1) Labour Welfare Centers

There are 42 Labour Welfare Centres in Tamilnadu.
Each Labour Welfare Centre consists of
(a) Tailoring Training Centres,
(b) Pre-Schools and
(c) Reading Rooms and one Pre-School is functioning at Pallipalayam, Erode District.

(a)Tailoring Training Centres

Eligibility	Benefits	How To Apply
(1) Employee's Wife, Unmarried Daughter & Unmarried Sister who are dependants of workers. 2) Should have completed 16 years of age 3) To appear for Government Examination 8th Passed is essential 4) For mere training know to read and write Tamil is enough	The duration of the course is one year from january to December. A maximum of 50 Trainees are admitted in each Tailoring centre. Training is given for needle work, dress making and embroidery. During training the trainees are paid a monthly stipend of Rs. 150/-. At the end of the course, trainees are sent for Government Examinations. The first rank holder in each centre is given a prize of sewing machine for lower as well as higher grade. Course completion certificates are also given to the students.	1) Application Forms can be obtained directly from the nearest Labour Welfare Center or from the Secretary, Tamil Nadu Labour Welfare Board, Post Box No.718, DMS Campus Teynampet, Chennai - 6. 2) Filled-in applications can be handed over to the respective Labour Welfare Centre, Organiser-cum-Tailoring Instructress before 31st January of every year. 3) Photocopy of Bank Pass Book and Aadhaar Card should be enclosed. For further details refer application form.

(b) Pre-Schools

Eligibility	Benefits	How To Apply
(1) Workers children in the age group of 2 to 5 years	Pre-schools are functioning from June to April. A maximum of 50 children are admitted in each centre. Children are given nutritious Mid-day meals and 150ml of milk in the evening every day. Besides this they are given eggs thrice and fruits twice in a week. Children are imparted basic education in Tamil, Maths and English. They are also provided with two sets of teri-cotton uniforms every year.	1) Application Forms can be obtained directly from the nearest Labour Welfare Center or from the Secretary, Tamil Nadu Labour Welfare Board, Post Box No.718, DMS Campus Teynampet, Chennai - 6. 2) Filled-in applications can be handed over to the respective Labour Welfare Centre, Organiser-cum-Tailoring Instructress before 31st January of every year. 3) Photocopy of Bank Pass Book and Aadhaar Card should be enclosed. For further details refer application form.

(c)Reading Rooms

Eligibility	Benefits	How To Apply
Workers and their dependants.	Dailies, Weekly and monthly Magazines are provided.	Workers can avail this facility in nearby Labour Welfare Centres

(2)Educational Scholarship

Eligibility	Benefits	How To Apply
Scholarship is given to the children of the workers for pursuing thier higher education on the basis of their marks in their qualifying exam indicated against each them.	1) Master Degree Course in Engineering, Medicine, Law, Agriculture, Education and Physical Education - Rs. 6,000/- 2) Bachelor Degree course in Engineering, Medicine, Law Agriculture Education and Physical Education - Rs. 4000/- 3) Diploma course in Engineering, Medicine, Education and Physical Education - Rs. 2,500/- 4) Higher Secondary Rs. 2,000/- 5) I.T.I Course - Rs. 2,000/-	(1) Application forms can be obtained from the Secretary, Tamil Nadu Labour Welfare Board,P.B. No. 718, DMS Campus, Teynampet, Chennai-6. (2) The last date for receipt of the application for every academic year is 31st October. 3) Application should be signed by the student worker, employer and school / college authority. 4) Employee's salary certificate and attested copy of previous year mark certificate should be enclosed. 5) Photocopy of Bank Pass Book and Aadhaar Card should be enclosed. For further details refer application form.

(3)Educational Incentive

Eligibility	Benefits	How To Apply
Workers children who secure first ten ranks in 10th and 12th Standard Public Examinations in each Educational District	For 10th Standard:- Rs. 2,000/- For 12th Standard Rs. 3,000/-	1) Application Forms can be obtained from the Secretary, Tamil Nadu Labour Welfare Board, P.B. No. 718, DMS Campus, Teynampet, Chennai. 6 2) Last date for receipt of the application for every Academic Year is 31st October. 3) Application should be signed by the student worker, employer and school authority. 4) Attested copy of 10th / 12th mark certificate should be enclosed. 5) Photocopy of Bank Pass Book and Aadhaar Card should be enclosed. For further details refer application form.

(4)Book Allowance

Eligibility	Benefits	How To Apply
1)Children of the workers studying in regular classes from Higher Secondary to Master Degree 2) Evening College / Correspondence courses are not eligible.	1) Higher Secondary course (only for private school students) - Rs.1,000/- 2) Diploma Course - Rs.1,500/- 3) Degree course - Rs.2,000/- 4) P.G. Course -Rs. 3,000/-	1) Application Forms can be obtained from the Secretary, Tamil Nadu Labour Welfare Board, P.B. No. 718, DMS Campus, Teynampet, Chennai - 600 006 2) Last date for receipt of the application for every Academic Year is 31st October. 3) Application should be signed by the student worker, employer and school authority. Employee's salary certificate should be enclosed. 4) Photocopy of Bank Pass Book and Aadhaar Card should be enclosed. For further details refer application form.

(5)Reimbursement of cost of Basic Computer Training

Eligibility	Benefits	How To Apply
Workers and their dependants who underwent Basic Computer Training in institutions approved by Government.	Rs. 1000/- to five employees / dependents in each Revenue District.	1) Application Forms can be obtained from the Secretary, Tamil Nadu Labour Welfare Board, P.B.No. 718, DMS Campus, Teynampet, Chennai. 6 2) Application should be signed by the student, worker, employer and school authority. 3) Photocopy of Bank Pass Book and Aadhaar Card should be enclosed.

(6)Assistance for Typewriting & Shorthand

Eligibility	Benefits	How To Apply
Workers and their children who have passed in Typewriting (Tamil and English Lower & Higer) and Shorthand (Tamil and English - Lower & Higher) Examinations.	1) Typewriting Lower - Rs.1,000/- 2) Typewriting Higher - Rs.600/- 3)Shorthand Intermediate / High speed - Rs.750/- 4) Shorthand Lower & Higher - Rs.1,500/-	1) Application Forms can be obtained from the Secretary, Tamil Nadu Labour Welfare Board, P.B.No. 718, DMS Campus, Teynampet, Chennai - 600 006 2) Application should be signed by the student, worker, employer and should be sent within one year from the date of appearing examinations. 3) Original Hall Ticket and attested copy of pass certificate and employee's salary certificate should be enclosed. 4) Photocopy of Bank Pass Book and Aadhaar Card should be enclosed. For further details refer application form.

(7) Reimbursement of Cost of Spectacles

Eligibility	Benefits	How To Apply
(1) Employees only one time in their entire service.	Reimbursement up to Rs. 500/-	1) Application Forms can be obtained from the Secretary, Tamil Nadu Labour Welfare Board,P.B. No. 718, DMS Campus, Teynampet, Chennai. 6. 2) Applications should be signed by the worker and the employer. 3) Employee's salary certificate, Doctor's Prescription and original cash bill should be enclosed. 4) Photocopy of Bank Pass Book and Aadhaar Card should be enclosed. For further details refer application form.

(8)Assistance for Hearing Aid / Artificial Limb and Supply of Three Wheelers

Eligibility	Benefits	How To Apply
Hearing impaired workers / their children.	Workers and their wards are given Hearing Aid assistance upto Rs. 1,000/- and Artificial Limbs assistance as prescribed by the Government Likewise Three Wheelers are supplied free of cost to the workers	1) Application Forms can be obtained from the Secretary, Tamil Nadu Labour Welfare Board,P.B. No. 718, DMS CampusTeynampet, Chennai-6. 2) Application should be signed by the worker, employer and Doctor. 3) Employee's salary certificate, Doctor's Prescription/Certificate and orginal cash bill (for Hearing Aid / Artificial Limbs) should be enclosed. 4) Photocopy of Bank Pass Book and Aadhaar Card should be enclosed.

(9)Marriage Assistance

Eligibility	Benefits	How To Apply
Worker or their daughter/son who legally attain the age of marriage.	For Female - Rs.5,000/- For Male - Rs.3,000/-	1) Application Forms can be obtained from the Secretary, Tamil Nadu Labour Welfare Board, P.B. No. 718, DMS Campus, Teynampet, Chennai-6. 2) Application should be signed by worker & employer and should be sent within three months from the date of marriage. 3) Marriage invitation, receipt and Stamped receipt for Rs.5,000 / Rs.3,000 should be enclosed. 4) Photocopy of Bank Pass Book and Aadhaar Card should be enclosed. For further details refer application form.

(10) Natural Death Assistance / Funeral Expenses

Eligibility	Benefits	How To Apply
When a worker dies while in service his dependants is paid with Death Assistance and Funeral Expenses.	Death Assistance - Rs.25,000/- Funeral Expenses - Rs.2,000/-	1) Application Forms can be obtained from the Secretary, Tamil Nadu Labour Welfare Board, P.B. No. 718, DMS Campus, Teynampet, Chennai - 6. 2) Application should be signed by the Legal heir and employer. 3) Employee's last month salary certificate , attested copy of death & legal heir certificate and advance stamped receipt for Rs.27,000/- should be enclosed. 4) Application form should be submitted within six months from the date of death. 5) Photocopy of Bank Pass Book and Aadhaar Card should be enclosed. For further details refer application form.

(11)Accidental Death Assistance / Funeral Expenses

Eligibility	Benefits	How To Apply
When a worker dies in accident while in service his dependants is paid with Accidental Death assistance and Funeral Expenses.	1) Accident Death Assistance - Rs.1,00,000/- 2) Funeral Expenses - Rs.2,000/-	1) Application Forms can be obtained from the Secretary, Tamil Nadu Labour Welfare Board,P.B. No. 718, DMS Campus, Teynampet, Chennai. 6. 2) Application should be signed by Legal heir and employer. 3) Employee's last month salary certificate, attested copy of death certificate, legal heir certificate and advance stamped receipt for Rs. 1.02,000/- should be enclosed. 4) Copy of FIR, Post-mortem report and Final Medical investigation report should also be enclosed. 5) Application form should be submitted within six months from the date of death. 6) Photocopy of Bank Pass Book and Aadhaar Card should be enclosed. For further details refer application form.

(12) T.B. Wards

Eligibility	Benefits	How To Apply
For Worker affected by TB.	The Board has reserved beds for the workers in TB Wards in the following Government Hospitals. (1) Tambaram Sanitorium (Chennai). (2) Asaripallam (Kanyakumari District) (3) Tirupur (Tiruppur District) (4) Austinpatti (Madurai District) (5) Keezhpennathur (Thiurvannamalai District)	T.B. Workers can send their applications through the employer.

HOLIDAY HOMES

In order to enable the workers to stay with their family, Holiday Homes have been constructed by the Tamil Nadu Labour Welfare Board at Mamallapuram, Valparai and Courtallam.
• A Holiday Home named "Jawaharlal Nehru Illam" is functioning at Mammalapuram for the benefit of the Workers and their families. Forty Four Beds are provided therein.
• A Holiday Home named "Singaravelar Illam" is functioning at Valparai for the benefit of the Workers and their families. Thirty Beds are provided therein.
• A Holiday Home named Thiru-vi-ka Illam is functioning at courtallam for the benefit of the Workers and their families. Ninety Three beds are provided therein.

Rent for Rest Houses per day per person
For Labour

Place	Double Bed	Dormitory
Mamallapuram	70/-	40/-
Valparai	80/-	40/-
Courtalam (a) Ordinary Days	60/-	40/-
(b) Season Days	70/-	60/-

For Public

Place	Double Bed	Dormitory
Mamallapuram	375/-	190/-
Valparai	250/-	190/-
Courtalam (a) Ordinary Days	250/-	125/-
(b) Season Days	375/-	190/-

JEEVA ILLAM, CHENNAI

A stay home exclusively for Workers representatives, who come to Chennai from various places for conciliation and conducting cases on behalf of the workers. Totally Sixty two beds are provided therein.

Rent For Jeeva Illam Per Day Per Person
For Trade Union Leaders only

Double Bed Room (Rs.)	Dormitory (Rs.)
80/-	50/-

Apprentices Act 1961,

Purpose & Object

The Apprentices Act, 1961 has been enacted to regulate and control the training of apprentices and for matters connected therewith.

Applicability

• The Apprentices Act, 1961 extends to whole of India.
• It applies to both public and private sector establishments;
• Provisions of Apprentices Act, 1961 does not apply to:
i. any area or to any industry in any area unless the Central Government by notification specifies that the provisions of this act are applicable to that area or industry;
ii. any such special apprenticeship scheme for imparting training to apprentices as may be notified by the Central Government.

Meaning & Qualifications

Meaning of Apprentice :

• An Apprentices means trainee, beginner, novice;
• A person who is undergoing apprenticeship training in pursuance of a contract of apprenticeship.

Qualifications of Apprentice :

• An Apprentice Should not be less than 14 years of age;
• An Apprentice should also satisfy all standards of education and physical fitness as may be prescribed.

Contract of Apprenticeship

• No person shall be engaged as an apprentice in a designated trade unless such person or, if he is a minor, his guardian has entered into a Contract of Apprenticeship with the employer;
• Contract of apprenticeship may contain all such terms & conditions as may be agreed between the parties consistent with the provisions of the Act.

Employer’s Obligations

• To provide training to apprentice in accordance with the provisions of the Act and the Rules made there-under;
• To ensure that a person possessing prescribed qualification is made in-charge of the training of the apprentice;
• To provide adequate & qualified instructional staff for imparting practical and theoretical training and facilities for trade test of apprentices;
• To fulfill obligations as agreed under the contract of apprenticeship.

Factories Act, 1948

Purpose & Object

Factories Act, 1948 has been enacted to regulate the working conditions in factories and to ensure provision of the basic minimum requirements for safety, health and welfare of the workers as well as to regulate the working hours, leave, holidays, employment of children, women, etc.

Applicability

• Factories Act, 1948 extends to whole of India.
• It applies to factories as defined under the Act.

Coverage

• Any premises including the precincts thereof where 10 or more workers are or were working on any day of the preceding 12 months and in any part of which a manufacturing process is being carried on with the aid of power or is ordinarily so carried on; or
• Any premises including the precincts thereof where 20 or more workers are or were working on any day of the preceding 12 months and in any part of which a manufacturing process is being carried on without the aid of power or is ordinarily so carried on

Working Conditions in Factories

Adult Workers

Working Conditions	Men	Women	Children
Hours of Work	Not more than 9 hours in a day and 48 hours in any week	Not more than 9 hours in a day and 48 hours in any week	Not more than 4½ hours in a day
Working Hours	Having Certificate of Fitness to work in a factory and having attained the age of 17 years: Any time Having Certificate of Fitness to work in a factory but not having attained the age of 17 years: between 6AM and 7PM	Between 6 A.M.and 7 P.M. State Governments may modify the limit by notification; but in no case, any female adolescent may be employed between 10 P.M.and 5 A.M.	For male child:Between 6 A.M. and 10 P.M.For female child: Between 8 A.M. and 7 P.M.No child is permitted to work during night
Overtime	In case of more than 9 hours of work in any day or 48 hours in any week, the worker shall be entitled to overtime wages at the rate of twice his ordinary rate of wages	In case of more than 9 hours of work in any day or 48 hours in any week, the worker shall be entitled to overtime wages at the rate of twice his ordinary rate of wages	N.A.
Interval	At least ½ hour break after every 5 hours of continuous work	At least ½ hour break after every 5 hours of continuous work	N.A.

Adolescent

Working Conditions	Male	Female	Children
Hours of Work	Not more than 9 hours in a day and 48 hours in any week	Not more than 9 hours in a day and 48 hours in any week	Not more than 4½ hours in a day
Working Hours	Any time	Between 6 A.M. and 7 P.M State Governments may modify the limit by notification; but in no case, any women may be employed between 10 P.M. and 5 A.M.	For male child:Between 6 A.M. and 10 P.M.For female child: Between 8 A.M. and 7 P.M.No child is permitted to work during night
Overtime	In case of more than 9 hours of work in any day or 48 hours in any week, the worker shall be entitled to overtime wages at the rate of twice his ordinary rate of wages	In case of more than 9 hours of work in any day or 48 hours in any week, the worker shall be entitled to overtime wages at the rate of twice his ordinary rate of wages	N.A.
Interval	At least ½ hour break after every 5 hours of continuous work	At least ½ hour break after every 5 hours of continuous work At least ½ hour break after every 5 hours of continuous work At least ½ hour break after every 5 hours of continuous work	N.A.

Payment of Gratuity Act, 1972

Purpose & Object

The Payment of Gratuity Act, 1972 has been enacted to provide for a scheme for payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments upon their superannuation, retirement, resignation, death or disablement due to accident or disease.

Applicability

• Payment of Gratuity Act, 1972 extends to whole of India.
• It applies to every factory, mine, oilfield, plantation, port and railway company, shop or establishment in which 10 or more persons are or were employed on any day of the preceding 12 months;
• It applies to all such other establishments or class of establishments in which 10 or more persons are or were employed on any day of the preceding 12 months as the Central Government may, by notification, specify in this behalf.

Eligibility

Gratuity is payable to employees who have rendered continuous service of at least 5 years.

Maximum Limit

• Employees covered under the Act are entitled for maximum amount of gratuity of Rs. 10,00,000/-

• The employer may be pleased to offer better terms of gratuity. However, any amount exceeding the maximum prescribed limit of gratuity (Rs. 10,00,000/-) becomes taxable in the hands of the recipient..

Rate of Gratuity

• Gratuity is payable at the rate of 15 days' last drawn wages by the employee concerned for every completed year of his service or part thereof in excess of 6 months.

• In case of a monthly rated employee, 15 days' wages shall be calculated by dividing the last drawn monthly wages by 26 and multiplying the quotient by 15.

• In case of a piece-rated employee, daily wages shall be computed on the average of the total wages received by him for a period of 3 months immediately preceding the termination of his employment (without taking into account the wages paid for any overtime work).

Industrial Disputes Act, 1947

Purpose & Object

Industrial Disputes Act, 1947 has been enacted to provide machinery for peaceful resolution of Industrial Disputes and to promote harmonious relation between employers and workers..

Applicability / Eligibility

• The coverage of Industrial Disputes Act, 1947 extends to whole of India
• Applicable to all industrial and commercial establishments
• Covers all workers and supervisors drawing salaries up to Rs. 1600/- per month
• Not applicable to person employed in managerial and administrative capacities

Main Provisions

• Defines terms ‘Industry’, ‘Industrial Dispute’, ‘Lay-off’, ‘Strike’, ‘Lockout’, ‘Retrenchment’, ‘Trade Union’ etc
• Provides machinery for investigation and settlement of ‘Industrial Disputes’ through Works Committees, Conciliation Officers, Boards of Conciliation, Courts of Inquiry, Labour Courts, Industrial Tribunals, voluntary Arbitration and Collective Bargaining
• Provides for setting-up of 'Grievance Settlement Authority’ (GSA) in certain establishments
• Provides for notice of change in employment conditions
• Provides Strike, Lockout & Retrenchment procedures
• Provides for Lay-off & Retrenchment Compensation
• Provides for Compensation to workmen in case of transfer of undertakings
• Protection of workmen during pendency of proceedings
• Provides for Right to Appeal
• Provides for Reopening of Closed Undertakings
• Lays down provisions regarding Unfair Labour Practices
• Provides Obligations & Rights of Employees

The Equal Remuneration Act, 1976

The Equal Remuneration Act is a gift of "the International Women's Year" to women workers. It is enacted to give effect to the provision of Article 39 of the Constitution of India which contains a directive principle of equal pay for equal work for both men and women. The Act provides for the payment of equal remuneration to men and women workers for the same work or work of a similar nature and for the prevention of discrimination on the ground of sex against women in the matter of employment. The main provisions of the Act are as follows.

Equal pay for equal work

No employer shall pay to any worker employed by him remuneration at rates less favourable than those at which remuneration is paid by him to the workers of the opposite sex for performing the same work or work of similar nature. {Section 4(1)}

No discrimination to be made while recruiting men and women

No employer shall make any discrimination against women while making recruitment for the same work or work of a similar nature. {Section 5}

Exceptions

The provisions of the Act shall be inapplicable when special treatment is given to women under any law or when special treatment is accorded to women in connection with the birth of a child. {Section 15}

Claims and Complaints

(a)Complaints with regard to the contravention of any provision of the Act and claims arising out of non-payment of wages at equal rates to men and women workers for the same work or work of similar nature shall be heard and decided by an authority appointed by the appropriate Government. An appeal shall lie against any order of the authority to an appellate authority appointed by the appropriate Government {Section 7}
(b)Monies due from an employer arising of the decision of the authority or the appellate authority can be recovered by making an application under Section 33-C(1) of the Industrial Disputes Act, 1947. {Section 7(8)}

Penalties

If any employer (a) makes any recruitment in contravention of the provisions of the Act, or (b) makes any payment of remuneration at unequal rates to men and women workers, for the same work or work of a similar nature, or (c) makes any discrimination between men and women workers in contravention of the provisions of the Act, he would be punished with fine upto Rs. 10000.00 {Section 10}

Maintenance of Register

Every employer shall maintain in the prescribed form a register in relation to the workers employed by him. {Section 8 & Rule 6}

What is meant by equality of work?

The equality of work is not based on the designation or the nature of work alone. There are several other factors, which are equally relevant. They are qualifications, responsibilities, reliabilities, experience, confidentiality, functional need and requirements commensurate with the position in the hierarchy.

Industrial Employment Act, 1946

Purpose & Object

The Industrial Employment (Standing Orders) Act, 1946 has been enacted with the object that the employers in industrial establishments shall define with sufficient precision the conditions of employment and shall also make known these conditions to the workmen.

Applicability

• Industrial Employment (Standing Orders) Act, 1946 extends to whole of India.
• It applies to every industrial establishment in which 100 or more workmen are or were employed on any day of the preceding 12 months;
• It shall not apply to any industry to which the provisions of Chapter VII of the TN Industrial Relations Act, 1946 are applicable;
• It shall also not apply to any industrial establishment to which the provisions of the Madhya Pradesh Industrial Employment (Standing Orders) Act, 1961 are applicable.

Meaning Industrial Establishment:

• An industrial establishment as defined in section 2(ii) of the Payment of Wages Act, 1936; or
• Factory as defined in section 2(m) of the Factories Act, 1948; or
• Railway as defined in section 2(4) of the Indian Railways Act, 1890; or
• Establishment of a person who, for the purpose of fulfilling a contract with the owner of any industrial establishment, employs workmen

Standing Orders:

• Standing Orders means Rules relating to matters set out in the Schedule to Industrial Employment (Standing Orders) Act, 1946.

The Maternity Benefit Act, 1961

Purpose & Object

The Maternity Benefit Act, 1961 has been enacted to regulate the employment of women in certain establishments for a certain period before and after the child birth and also to provide for maternity and other benefits.

Applicability

• Maternity Benefit Act, 1961 extends to whole of India.
• It applies to every establishment being a factory, mine or plantation including any such establishment belonging to Government and to every establishment wherein persons are employed for the exhibition of equestrian, acrobatic and other performances;
• It also applies to every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which 10 or more persons are or were employed on any day of the preceding 12 months;
• Maternity Benefit Act, 1961 is not applicable on any factory or other establishment to which the provisions of ESI Act, 1948 apply. Eligibility for Maternity Benefits
• Every woman shall be entitled to maternity benefit;
• No woman shall be entitled to maternity benefit unless she has actually worked in an establishment for a period not less than 80 days during 12 months immediately preceding the date of her expected delivery.

Maternity Benefits

• Maternity Benefits may be claimed for a maximum period of 12 weeks- 6 weeks up to and including the day of her delivery and 6 weeks immediately following that day.
• Maternity Benefits are calculated at the rate of Average Daily Wages for the period of her actual absence.

The Minimum Wages Act, 1948

Purpose & Object

The Minimum Wages Act, 1948 has been enacted to provide the minimum wages in certain specified employments. The Minimum Wages Act binds the employers to pay the minimum wages fixed under the Act from time to time. Under the provisions of the Act both the Central and State Government have authority to fix, review, revise and enforce the minimum wages to workers employed in scheduled employment under their respective jurisdictions.

Applicability

• Minimum Wages Act, 1948 extends to whole of India.
• It applies on persons employed in an employment specified in Part I (Non-agricultural Employment) & Part II (Agricultural Employment) of the Schedule to the Minimum Wages Act, 1948.

Fixation of Minimum Wages

• Appropriate Government (Central or State, as the case may be) has authority to fix the minimum rate of wages in respect of employment specified in Part I & II of the Schedule to the Act.
• The Central Government has authority to fix rate of minimum wages for 45 Spheres of employment; whereas, the State Governments have authority to fix rate of minimum wages for 1596 Spheres of employment in their territory.

Minimum Rate of wages

The Central Government and the State Governments have fixed different rate of minimum wages for different spheres / sectors of employment in their respective jurisdictions. You may access the updated rate of Minimum Wages, as applicable in different states, by clicking the following link: http://labour.nic.in/wagecell/minwages.html

Payment of Wages Act, 1936

Purpose & Object

The Payment of Wages Act, 1936 has been enacted to regulate the payment of wages of certain specified classes of workers. The Act provides for prompt and effectual remedy to the workers against illegal and unjustified deductions from their wages. Further, the Act also seeks to ensure timely payment of wages to workers and prescribes mode of payment of wages to the employed persons.

Applicability

• Payment of Wages Act, 1936 is a central legislation & extends to whole of India.
• It applies to all persons employed, whether directly or through contractors, in a factory or certain specified industrial or other establishments.
• Applicable on employees drawing wages up-to 6,500/- per month.

Person Responsible for Payment

• In case of factories, person named as manager under the provisions of Factories Act, 1948; • In case of industrial or other establishments, person responsible for supervision and control of the industrial or other establishments; • In case of railways, the railway administration and the person nominated by railway adminis¬tration for the local area concerned; • In case of contractor, person designated by contractor.

Professional Tax Act, 1992

Tax on Profession, trade, calling and employment.

1) "Employee" means a person employed on salary and includes,
1) a Government servant receiving pay from the revenue of the Central Government or any State Government;
2) a person in the service of a body whether incorporated or not, which is owned or controlled by the Central Government or any State Government, where, such body operates within the municipal limit even though its headquarters may be outside the municipal limit; and
3) a person engaged in any employment by an employer not covered by sub-clauses (i) and (ii);
2) "employer" in relation to an employee earning any salary on a regular basis under his means, the person or the officer who is responsible for disbursement of such salary and includes the head of the office or any establishment as well as the Manager or Agent of the employer;
3) "half-year" shall be from the 1st day of April to the 30th day of September and from the 1st day of October to the 31st day of March of a year;
4) "month" means a calendar month;
5) "person" means any person who is engaged actively or otherwise in any profession, trade, calling or employment in the State of Tamil Nadu and includes a Hindu undivided family, firm, company, corporation or other corporate body, any society, club, body of persons or association, so engaged, but does not include any person employed on a casual basis;
6) "Tax" means the tax on profession, trade, calling and employment levied under this Chapter.

Levy of Profession tax :

1) There shall be levied by the Municipal Council a tax on profession, trade calling and employment.
2) Every company which transacts business and every person, who is engaged actively or otherwise in any profession, trade, calling or employment with in the Town Panchayat on the first day of the half-year for which return is filed, shall pay half-yearly tax at the rates specified in the Table below in such manner as may be prescribed:

THE TABLE

Sl. No.	Six months income (Rs.)	Old Tax (Rs)	New Tax (Rs)
1	upto 21,000	-	-
2	21,001– 30,000	75	100
3	30,001 – 45,000	188	235
4	45,001 – 60,000	390	510
5	60,001 – 75,000	585	760
6	75,001 and above	810	1095

Profession Tax Collectable from the salary of August (Ist Quarter ) and January (IInd Quarter)

3) The rate of tax payable under sub-section (2) shall be published by the executive authority in such manner as may be prescribed.
4) Where a company or person proves that it or he has paid the sum due to account of the tax levied under this chapter or any tax of the nature of a profession tax imposed under the Cantonments Act, 1924 for the same half-year to any local authority or cantonment authority in the State of Tamil Nadu such company or person shall not be liable by reason merely of change of place of business, exercise of profession, trade, calling or employment or residence, to pay the tax to any other local authority or cantonment authority. (Central Act II of 1924).
5) The tax livable from a firm, association or Hindu undivided family may be levied on any adult member of the firm, association or family.
6) Where a person doing the same business in the same name in one or more places within the Town Panchayat, the income of such business in all places within the Town Panchayat shall be computed for the purpose of levy of tax and such person shall pay the tax in accordance with the provisions of this Chapter.
7) Where any company, corporate body, society, firm, body of persons or association, pays the tax under this chapter, any director, partner or member as the case may be, of such company, corporate body, society , firm, body of persons or association shall not be liable to pay tax under this Chapter for the income derived by such director partner or member form such company, corporate body, society, firm, body of persons or associations.
8) Every person who is liable to pay tax, other than a person earning a salary or wage shall furnish to the executive authority a return in such form, for such period and within such date and in such manner as may be prescribed . Provided that subject to the provisions of sub-sections (10) and (11), such person may make a self-assessment on the basis of average half-yearly income of the previous financial year and the return filed by him shall be accepted without calling for the accounts and without any inspection.
9) Every such return shall accompany with the proof of payment of the full amount of tax due according to the return and a return without such proof of payment shall not be deemed to have been duly filed.
10) Notwithstanding anything contained in the proviso to sub-section (8), the executive authority may select the percent of the total number of such assessment in such manner as may be prescribed for the purpose of detailed scrutiny regarding the correctness of the return submitted by a person in this connection and in such cases final assessment order shall be passed in accordance with provisions of this Chapter.
11) If no return is submitted by any person under sub-section (8) within the prescribed period or if the return submitted by him appears to the executive authority to be incomplete or incorrect, the executive authority shall, after making such enquiry as be may consider necessary assess such person to the best of his judgement:
Provided that before taking action under this sub-section, the person shall be given a reasonable opportunity of proving the correctness or completeness of any return submitted by him.
12) Every person who is liable to pay tax under this section, other than a person earning salary or wage:-
(a) shall be issued with a pass book containing such details relating to such payment of tax as may be prescribed and if the pass book is lost or accidentally destroyed the executive authority may, on an application made by the person accompanied by such fee as may be fixed by the municipal council, issue to such person a duplicate of the pass book.
(b) shall be allotted a permanent account number and such person shall -
(i) quote such number in all his returns to, or correspondence with the executive authority;
(ii) quote such number in all chalans for the payment of any sum due under this chapter.
(13) The rate of tax specified under sub-section (2) shall be revised by the municipal council once in every five years and such revision of tax shall be increased not less than twenty-five percent and not more than thirty-five percent of the tax levied immediately before the date of revision.
Rules - The Tamil Nadu Town Panchayats, Municipalities and Municipal Corporations (Collection of Arrears of Tax on Profession, Trades, Calling and Employment's) Rules, 1998 - Issued.