ACTS GOVERNING SOCIAL SECURITY MEASURES IN INDIA NEED FOR SOCIAL SECURITY Social Security protects the subscriber

and his/her entire family by giving beneficial packages in financial security and health care. It facilitates people to plan their future through insurance and assistance. Social Security schemes are designed to guarantee at least long-term sustenance to families when the earning member retires, dies or suffers a disability. WORKFORCE IN INDIA The dimensions and complexities of the problem in India can be better appreciated by taking into consideration the extent of the labour force in the organized and unorganized sectors.

While as per the 1991 census, the total workforce was about 314 million and the organized sector accounted for only 27 million out of this workforce. workforce had increased to about 397 million out of which only 28 million were in the organized sector. There has been a growth of only about one million in the organized sector in comparison the growth of about 55 million in the unorganized sector. -2000 has estimated that the Organized sector The organized sector includes primarily those establishments which are covered by the Factories Act, 1948, the Shops and Commercial Establishments Acts of State Governments, the Industrial Employment Standing Orders Act, 1946 etc. This sector already has a structure through which social security benefits are extended to workers covered under these legislations. Unorganized sector The unorganized sector on the other hand, is characterized by the lack of labour law coverage, seasonal and temporary nature of occupations, high labour mobility, dispersed functioning of operations, lack of organizational support, etc. all of which make it vulnerable to socio-economic hardships. Landless agricultural labourers, farmers, persons engaged in animal husbandry, fishing, horticulture, bee-keeping, rural artisans, etc. Where as in the urban areas, it comprises mainly of manual labourers in construction, carpentry, trade, transport, communication, street vendors, hawkers, head load workers, garment makers, etc. SYNOPSIS OF SOCIAL SECURITY LAWS The principal social security laws enacted in India are the following: The Employees State Insurance Act, 1948 (ESI Act) The Employees Provident Funds & Miscellaneous Provisions Act, 1952 (EPF & MP Act) The Workmens Compensation Act, 1923 (WC Act),

The Payment of Gratuity Act, 1972 (P.G. Act), The Maternity benefit Act,1961. The Employees State Insurance Act, 1948 (ESI Act) The promulgation of Employees State Insurance Act, 1948 envisaged an integrated need based social insurance scheme that would protect the interest of workers in contingencies such as sickness, maternity, temporary or permanent physical disablement, death due to employment injury resulting in loss of wages or earning capacity. The Act also guarantees reasonably good medical care to workers and their immediate dependants. Following the promulgation of the ESI Act the Central Govt. set up the ESI Corporation to administer the Scheme. The Scheme, thereafter was first implemented at Kanpur and Delhi on 24th February 1952. Benefits The section 46 of the Act envisages following social security benefits :Medical benefit Sickness benefit (SB) (a) Extended Sickness Benefit (b) Enhanced Sickness Benefit Maternity Benefit (MB) Disablement Benefit (a) Temporary disablement benefit (TDB) (b) Permanent disablement benefit (PDB) Funeral Expenses The Employees Provident Funds & Miscellaneous Provisions Act, 1952 (EPF & MP Act) The EPF & MP Act, 1952 was enacted by Parliament and came into force with effect from 14th March,1952. A series of legislative interventions were made in this direction, including the Employees' Provident Funds & Miscellaneous Provisions Act, 1952. Presently, the following schemes are in operation under the Act: I. II. Employees' Provident Fund Scheme, 1952 Employees' Pension Scheme, 1995 (replacing the Employees' Family Pension Scheme, 1971) III. Employees' Deposit Linked Insurance Scheme, 1976 The Employees' Provident Fund Organization, India, is one of the largest provident fund institutions in the world in terms of members and volume of financial transactions that it has been carrying on. Employees' Provident Fund Scheme, 1952 Employee Provident Fund Scheme: Which applies to specific scheduled factories and establishments employing 20 or more employees and ensures terminal benefits to provident fund, superannuation pension, and family pension in case of death during service. Employees' Provident Fund Scheme takes care of following needs of the members: i. ii. iii. iv. v. vi.

Retirement Medical Care Housing Family obligation Education of Children Financing of Insurance Polices BENEFITS A member of the provident fund can withdraw full amount at the credit in the fund on retirement from service after attaining the age of 55 year. Full amount in provident fund can also be withdraw by the member under the following circumstance: A member who has not attained the age of 55 year at the time of termination of service. A member is retired on account of permanent and total disablement due to bodily or mental infirmity. On migration from India for permanent settlement abroad or for taking employment abroad. Withdrawal before retirement: A member can withdraw up to 90% of the amount of provident fund at credit after attaining the age of 54 years or within one year before actual retirement. Claim application in form 19 may be submitted to the concerned Provident Fund Office. Accumulations of a deceased member: Amount of Provident Fund at the credit of the deceased member is payable to nominees/ legal heirs. Claim application in form 20 may be submitted to the concerned Provident Fund Office. The Workmen's Compensation Act, 1923 Is one of the important social security legislations. It aims at providing financial protection to workmen and their dependants in case of accidental injury by means of payment of compensation by the employers. WHO IS A WORKMAN Workman means any person (other than a person whose employment is of a casual nature and who is employed otherwise than for the purposes of the employers trade or business) who is a railway servant as defined in section 3 of the Indian Railways Act, 1890 not permanently employed in any administrative, district or sub-divisional office of a railway and not employed in any such capacity as is specified in Schedule II, or employed in any such capacity as is specified in Schedule II, provisions of the Act have been extended to cooks employed in hotels, restaurants using power, liquefied petroleum gas or any other mechanical device in the process of cooking.

Compensation In case of death the minimum amount of compensation fixed is Rs,. 80,000 and Rs. 90,000 in case of permanent total disablement. The maximum amount of compensation payable is Rs. 4.56 lakh in the case of death and Rs. 5.48 lakh in the case of permanent total disablement. EMPLOYERS LIABILITY FOR COMPENSATION (ACCIDENTS) The employer of any establishment covered under this Act, is required to compensate an employee : Who has suffered an accident arising out of and in the course of his employment, resulting into (i) death,

(ii) permanent total disablement, (iii) permanent partial disablement, or (iv) temporary disablement whether total or partial, or(v) occupational disease. HOWEVER THE EMPLOYER SHALL NOT BE LIABLE a) b) c) In respect of any injury which does not result in the total or partial disablement of the workmen for a period exceeding three days; In respect of any injury not resulting in death, caused by an accident which is attributable to the workmen having been at the time thereof under the influence or drugs, or the willful removal or disregard by the workmen of any safeguards. when the employee has contacted a disease which is not directly attributable to a specific injury caused by the accident or to the occupation. The Payment of Gratuity Act, 1972 (P.G. Act) Which provides 15 days wages for each year of service to employees who have worked for five years or more in factories, establishments having a minimum of 10 workers. The maximum amount of gratuity payable is Rs. 3,50,000/-. The Maternity Act,1961 Every woman shall be entitled to, and her employer shall be liable for, the payment of maternity benefit, which is the amount payable to her at the rate of the average daily wage for not less than 12 weeks i.e. preceding and following the day of her delivery does not exceed 12 weeks. FACTORIES ACT 1948 The Factories Act, 1948 The Factories Act, is a social legislation which has been enacted for occupational safety, health and welfare of workers at workplaces. Factories covered under the Factories Act 1. The industries in which 10 or more than 10 workers are employed on any day of the preceding 12 months and are engaged in manufacturing process being carried out with the aid of power. 2. The industries in which 20 or more than 20 workers are employed in manufacturing process being carried out without the aid of power. Welfare Measures Factories Act Washing Facilities Facilities for storing and drying clothing Facilities for sitting First aid appliances Canteens Shelters, rest rooms and lunch rooms Creches Welfare officers Washing Facilities In every Factory 1.

Adequate and suitable facilities for washing shall be provided and maintained for the use of the workers therein. Separate and adequately screened facilities shall be provided for the use of male and female workers. 2. 3. Such facilities shall be conveniently accessible and shall be kept clean. Facilities for storing and drying Clothing The State Government may, in respect of any factory or class or description of factories, make rules requiring the provision therein of suitable places for keeping clothing not worn during working hours and for tile drying of wet clothing. Facilities for sitting Suitable arrangements for sitting shall be provided and maintained for all workers obliged to work in a standing position. The Chief Inspector may, by order in writing, require the occupier of the factory to provide before a specified date sitting arrangements as may be practicable for all workers so engaged or working. The State Government may, by notification in the Official Gazette, declare that the provisions of subsection (1) shall not apply to any specified factory or manufacturing process. First aid appliances There shall in every factory be provided and maintained, so as to be readily accessible during all working hours, first-aid boxes or cupboards equipped with the prescribed contents. There shall in every factory be provided and maintained, so as to be readily accessible during all working hours, first-aid boxes or cupboards equipped with the prescribed contents. The number of such boxes or cupboards shall not be less than 1 for every 150 workers ordinarily employed in the factory. Nothing except the prescribed contents shall be kept in a first-aid box or cupboard. Each first-aid box or cupboard shall be kept in the charge of a separate responsible person, who holds a certificate in first-aid treatment recognized by the State Government and who shall always be readily available during the working hours of the factory. In every factory wherein more than 500 workers are ordinarily employed, there shall be provided and maintained an ambulance room of the prescribed size, containing the prescribed equipment and in the

charge of such medical and nursing staff as may be prescribed and those facilities shall always be made readily available during the working hours of the factory. Canteens The State Government may make rules requiring that in any specified factory wherein more than 250 workers are ordinarily employed, a canteen or canteens shall be provided and maintained by the occupier for the use of the workers. Such rules may provide for1. The date by which such canteen shall be provided. 2. The standards in respect of construction, accommodation, furniture and other equipment of the canteen. The foodstuffs to be served therein and the charges which may be made therefore. The constitution of a managing committee for the canteen and representation of the workers in the management of the canteen. 3. 4. 5. The items of expenditure in the running of the canteen which are not to be taken into account in fixing the cost of foodstuffs and which shall be borne by the employer. Shelters, rest rooms and lunch rooms In every factory wherein more than 150 workers are ordinarily employed, adequate and suitable shelters or rest rooms and a suitable lunch room, with provision for drinking water, where workers can eat meals brought by them, shall be provided and maintained for the use of the workers. The shelters or rest rooms or lunch rooms to be provided under sub-section (1) shall be sufficiently lighted and ventilated and shall be maintained in a cool and clean condition. The State Government may1. Prescribe the standards in respect of construction, accommodation, furniture and other equipment of shelters, rest rooms and lunch rooms to be provided under this section. By notification in the Official Gazette, exempt any factory or class or description of factories from the requirements of this section.

2. Creches In every factory wherein more than 50 women workers are ordinarily employed there shall be provided and maintained a suitable room or rooms for the use of children under the age of six years of such women. Such rooms shall provide adequate accommodation, shall be adequately lighted and ventilated, shall be maintained in a clean and sanitary condition and shall be under the charge of women trained in the care of children and infants. The State Government may make rules1. Prescribing the location and the standards in respect of construction, accommodation furniture and other equipment of rooms to be provided under this section. Requiring the provision in any factory of free milk or refreshment or both for such children. Requiring that facilities shall be given in any factory for the mothers of such children to feed them at the necessary intervals. Requiring suitable provision of facilities for washing and changing the clothing of children. 2. 3. 4. Welfare officers In every factory wherein 500 or more workers are ordinarily employed the occupier shall employ in the factory such number of welfare officers as may be prescribed. The State Government may prescribe the duties, qualifications and conditions of service of officers employed under the above sub-section. Provident fund Provident fund A part of your salary is deducted every month and deposited on your behalf. If you work in a private firm then the company pays the same amount as it is deducted from your account and when you leave the firm you can apply and withdraw the amount saved. It's actually your personal saving of your earnings. If you are in government service then Provident Funds and Miscellaneous Provisions Act, provides for compulsory contributory fund for the future of an employee after his retirement or for his dependents in case of his early death.It extends to the whole of India except the State of Jammu and Kashmir and is applicable to: every factory engaged in any industry specified in Schedule 1 in which 20 or more persons are employed; every other

establishment employing 20 or more persons or class of such establishments which the Central Govt. may notify; Employees' Provident Funds & Miscellaneous Provisions Act, 1952 Objective promoting and securing the well being of the employees by way of provident fund, family pension and insurance to them. inculcating a habit of saving amongst workers. providing a steady workforce to the employers and assisting the government by providing funds of considerable magnitude for utilization on various projects meant for promoting economic and social development of the country and the well being of its people. Applicability The Act shall apply to every establishment which is a factory engaged in any industry mentioned in schedule I of the Act and employing 20 or more persons or any other establishment employing twenty or more persons or such other establishment as the central Government may notify. Employees Provident Funds and Miscellaneous Provisions Act, 1952 SCHEMES Employees Provident Funds Scheme,1952 sec 5 Employees Pension Scheme,1995 sec 6A Employees Deposit-Linked Insurance Scheme,1976 sec 6C REGULATORY MECHANISM Central Board - section 5A Executive Committee section 5AA State Board - section 5B Central Government Hemant Sahai Associates Advocates Contribution of Employee12% of the Pay.* Pay includes basic wages# with dearness allowance, retaining allowance. VOLUNTARY CONTRIBUTION: -Member shall be at liberty to make voluntary contribution .Minimum PF Contribution: 12%, Maximum PF Contribution: 100% of the Pay. # Tax Benefits to the contribution are applicable as per Income Tax Rules. Employers Employees Provident Fund Scheme, 1952 What employee gets. Benefit Structure Accumulated Balance paid out on retirement. Balance = Employee and Employer Contributions + Interest credited Non-refundable Loans HRM PRESENTATION TOPIC: PENSION FUND AS A MEAN OF SOCIAL SECURITY MEANING OF THE TERM SOCIAL SECURITY Social security: Primarily refers to social welfare service concerned with social protection, or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others. Social security may refer to: 1) Social insurance 2) income maintenance 3) Services 4) basic security

CONTD. Social insurance- where people receive benefits or services in recognition of contributions to an insurance scheme. These services typically include provision for retirement pensions, disability insurance, survivor benefits and unemployment insurance. Income maintenancemainly the distribution of cash in the event of interruption of employment, including retirement, disability and unemployment Services provided by administrations responsible for social security. In different countries this may include medical care, aspects of social work and even industrial relations. Basic security, a term roughly equivalent to access to basic necessitiesthings such as food, clothing, shelter, education and medical care NEED FOR SOCIAL SECURITY Poverty in India points towards the need to adopt a wider concept of social security that would include both promotional and protective social security Prevention against increases in deprivation and the promotion of better chances of individual development. Provides financial relief at the time of distress. People all over the world are living longer, having fewer children, and expecting higher standards of living in their retirement years. The most important feature shared by all these workers is the absence of any sort of protection: whether it be employment security, pension, or coverage for risks such as ill health, accidents, death CONTD. Affects labour productivity and thus has implications that extend far beyond the workers and their families themselves With India's traditional means of support (the extended family), gradually breaking down a huge, impoverished and aging segment of the population is becoming an enormous drain on the country's resources. As people grow older the expenditure on their health also increases. While social security systems are meant to take care of the redundant/unemployed or the unemployable, selfaccumulated retirement savings are the only saviour for citizens of countries where formal social security systems dont exist PENSION A pension is a steady income given to a person (usually after retirement). Pensions are typically payments made in the form of a guaranteed annuity to a retired or disabled employee. Occupational pensions are a form of deferred compensation, usually advantageous to employee and employer for tax reasons. Many pensions also contain an insurance aspect, since they often will pay benefits to survivors or disabled beneficiaries, while annuity income insures against the risk of longevity. PENSION FUND A Pension fund is a pool of assets forming an independent legal entity that are bought with the contributions to a pension plan for the exclusive purpose of financing pension plan benefits. SOCIAL SECURITY ACTS PASSED BY THE GOVT. WORKMENS COMPENSATION ACT EMPLOYEE STATE INSURANCE ACT EMPLOYEE PROVIDENT FUND ACT MATERNITY BENEFIT ACT PAYMENT OF GRATUITY ACT

EMPLOYEE PROVIDENT FUND Employees Provident Funds Scheme, 1952. Employees Deposit-Linked Insurance Scheme, 1976 . Employees Pension Scheme 1995 (Earlier Employees Family Pension Scheme, 1971) . the Employees Provident Funds Scheme, 1952 To provide old-age and post service financial support to the workers in general employed in Industrial & Commercial Sector establishments. The scheme provided for provident fund system on contributory basis by the Employers and the Employees at equal rate. It made available to the employee concerned the accretions in the Provident Fund a/c with interest in lump sum on retirement or leaving the job. CONTRIBUTION OF THE EMPLOYEE 1. 12% OF THE PAY ( INCLUDING BASIC WAGES ) 2. VOLUNTARY CONTRIBUTION BY EMPLOYEE 3. EMPLOYER CANNOT REDUCE PAY 4. MINIMUM CONTRIBUTION 12% 5. MAXIMUM CONTRIBUTION 100% 6. TAX BENEFITS APPLICABLE AS PER INCOME TAX RULES CONTRIBUTION BY THE EMPLOYER 1. EQUAL TO 12% PAY OF THE EMPLOYEE 2. EPS 8.33% OF PENSIONBLE SALARY 3. PF 12% PAY EPS OTHER PROVISIONS IN THIS ACT 1. An employee may be allowed to make a nomination conferring on one or more persons the right to receive the provident fund amount. 2. If an employee nominates more than one person, he shall, in his nomination specify the amount or share payable to each of the nominees. 3. Where an employee has a family at the time of making a nomination, the nomination shall be in favour of one or more persons belonging to his family EMPLOYEES DEPOSIT-LINK INSURANCE SCHEME 1976 Provides for payment of assurance benefit, upon death of the member while in service; linked to the average balance in the provident fund account of the deceased member. The assurance benefit shall be payable to the person entitled to receive provident fund accumulation of the deceased member. MEMBERSHIP : ALL MEMBERS OF PROVIDENT FUND CONTRIBUTION: EMPLOYEES NOT REQUIRED TO CONTRIBUTE EMPLOYERS ARE REQUIRED TO CONTRIBUTE 0.50% OF PENSIONABLE SALARY EMPLOYEES PENSION SCHEME, 1995 (EARLIER THE EMPLOYEES FAMILY PENSION SCHEME 1971) CONTRIBUTION 1. Employee is not required to contribute separately under the Employees Pension Scheme 1995. 2. Employer share of Provident Fund Contribution @ 8.33% is diverted to Pension Fund

TYPE OF PENSION Monthly Members Pension: On attaining the age of 58 years. Invalidity pension: Permanent and total disablement during the course of employment. Widow pension: Death of member whether in service or after exit from employment or after retirement/ commencement of monthly member pension. Pension for life or until remarriage Children pension: Payable to two children of deceased member upto the age of 25 years in addition to widow. Orphan pension: Two orphan children upto the age of 25 years. Nominee pension: In case of unmarried members, a person nominated by the member will get pension equal to widow pension. REASONS FOR A NEW PENSION SCHEME Close to 65% of population still live in rural areas are not covered. Of the salaried 20% are govt employees-have a defined, indexed, pension entirely funded by the govt. About 49% of non-govt employees only covered by EPF & EPS. Less than 10% are eligible for the formal pension fund scheme estimated working population. Serious majority of workers who are not below the poverty line might go below it after their as they have not accumulated enough savings for future. NEW PENSION FUND SCHEME The Pension Fund Regulatory and Development Authority Bill, 2005 establishes an authority to develop and regulate the new pension system (NPS) which seeks to provide old age income security for all individuals, including those in the unorganised sector. NPS will be implemented through a combination of retailers, pension funds and record keeper(s). Every subscriber will have an individual pension account, which will be portable across job changes. The subscriber will choose the fund managers and schemes to manage his pension wealth. He also has the option of switching schemes and funds. The NPS has already been operationalised for new central government employees through a notification. This is a 'defined contribution' scheme unlike the 'defined benefit' scheme for existing central government employees KEY ISSUES AND ANALYSIS 1) The Bill provides a structure to the private and unorganised sectors to plan for old age income security. It is not compulsory for these sectors to take part in this system. Those not participating may still have to fall back on public resources in old age. 2) In the system for new government employees, the investment risk is entirely borne by the employee. However, he is no longer exposed to the risk of default by the government. 3) Only 13% of the workforce is currently covered by pension schemes. These are government employees and those in the organised sector covered by the Employees Pension Scheme 1995. This Bill provides a regulatory framework for a new pension system (NPS) which will be available to any individual Contd.. 4)Any unfavourable event affecting market prices at the time of retirement could lower both pension wealth and the annuity rate. Subscribers may have to stay on in the system beyond their retirement date in order to ride over such a shock. 5)Parliamentary Research Service (PRS) estimates that given

current market rates for annuity, Rs 1,000 per month subscribed to NPS for 35 years will result in lifetime annual pension for self of Rs 47,000 to Rs 77,000 under different scenarios of returns. KEY IMPLICATIONS LEADING TO SOCIAL SECURITY PROVIDES SOCIAL SECURITY TO THE PEOPLE IN THE FORM OF INCOME THROUGH PENSIONS INCOME REMAINS DEFINED WITH NO FLUCTUATIONS ALL CONTRIBUTIONS,ACCUMULATIONS AND RETURN OF BALANCES ON RETIREMENT ARE ALL TAXADVANTAGED ENJOY THE FACILITY OF SOFT LOANS FOR HOUSING FROM THE EMPLOYERS GROWTH IN VALUE OVER THE LONG TERM. INVESTMENT ACCORDING TO OUR PRIORITIES HIGHER RETURS DUE TO CHANGES IN INVESTMENT PATTERNS ( DEBT, EQUITY ) OPTIONS OF WITHDRAWING ANY TIME OF THE YEAR WHAT ARE STATUTORY WELFARE ACTIVITES? These are the Legal welfare activities for uplifment of employees. As in industries we are having Performance Appraisal system and 360 Degree Feedback Method for uplifment of employees similarly we have to take care of employees by welfare activities. Statutory Welfare Activities (Legal) It is the function of the public authorities to promote the well-being, health and welfare of the employees. The provision of social welfare and health care services in practice is the task of the individual employee. Compulsory to provide by an organization as compliance to the laws which govern employee health and safety. These include provisions given in industrial acts like Factories Act 1948 , Dock Workers Act (Safety health & welfare) 1986 , Mines Act 1962 STATUTORY WELFARE SERVICES Customs/Excise Conveyance Allowance Educational Allowance Income Tax Concession Award of Dealership by Oil Companies Economic Assistance by Public Sector Banks STATUTORY WELFARE SCHEMES First aid facilities Rest rooms Changing rooms Canteens Access to workplace Medical/Hospital facilities STATUTORY WELFARE SCHEMES Ventilation Lighting Space Heating Cleanliness VARIOUS ACTS The Factories Act, 1948 Employees Provident Fund Act Payment of Gratuity Maternity Benefit Act The Employee State Insurance Act , 1948 Health and Safety at Work Act 1974 Industrial Disputes Act The Factories Act, 1948

The industries in which 20 or more than 20 workers are employed in manufacturing process being carried out without the aid of power. Sitting facilities for occasional rest for Workers who are obliged to work standing. Provided for routine inspections of factories Detailed policies about cleanliness ,disposal of wastage, ventilation, spacing between workers, urinals, drainage, drinking water facilities etc This act is a complete document on hours of work, holidays, special provisions on accidents and diseases. Need a welfare officer if working more then 500 or more workers. All factory rooms must be well ventilated and lime-washed twice a year. Children must be supplied with two complete outfits of clothing. The work hours of children must begin after 6 a.m., end before 9 p.m., and not exceed 12 hours a day. Child labour should be avoided. Male and Female children must be housed in different sleeping quarters. Children may not sleep more than two per bed. Employees Provident Fund Act This Act may be cited as the Employees Provident Fund Act, No.15 of 1958. For the purposes of this Act, there shall be established a fund to be called the Central Provident Fund into which shall be paid all contributions authorised under this Act and out of which shall be met all payments authorised to be paid under this Act. A worker who completes 6 months continuous service or 120 days of work during 12 months is eligible. According to this scheme , the employer would pay 10 to 12 percent of the basic wage to the fund . The employee makes equal contribution. Payment of Gratuity This act includes all factories and establishments that employ 10 or more employees. Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years (a) on his superannuation, or (b) on his retirement or resignation, or (c) on his death or disablement due to accident or disease. The total gratuity payable should not me more than 20 months wages. Maternity Benefit Act To regulate the employment of women in certain establishments for certain periods before and after childbirth and to provide for maternity benefits and certain other Benefits This act applies to all women not covered by ESI Act and who have completed 160 days of service in last 12 months It allows for 6 weeks leave before and after the delivery during which she is paid the average daily wage. A women shall be entitled to maternity benefit only if she has actually worked in an Establishment of the employer for a period of not less then eighty days in the twelve months immediately proceeding the date of her expected delivery (section-5[2]) The Employee State Insurance Act, [ESIC] 1948

The Employee State Insurance Act, [ESIC] 1948, is a piece of social welfare legislation enacted primarily with the object of providing certain benefits to employees in case of sickness, maternity . The Employee State Insurance act was promulgated by the Parliament of India in the year 1948. To begin with the ESIC scheme was initially launched on 2 February 1952 at just two industrial centers in the country namely kanpur and Delhi with a total coverage of about 1.20 lac workers. Health and Safety at Work Act 1974 Before 1974 approximately 8 million employees had no legal safety protection at work. HASAWA 74 provides the legal framework to promote, stimulate and encourage high standards of health and safety in places of work. It protects employees and the public form work activities. Everyone has a duty to comply with the Act, including employers, employees, trainees, self-employed, manufacturers, suppliers, designers, importers of work equipment. Secures Health Safety and Welfare protects other people against risks from the activity of other people at work. controlling emissions Industrial Disputes Act An Act to make provision for the investigation and settlement of industrial disputes, and for certain other purposes. COLLECTIVE AGREEMENTS:(a) Collective agreement(i) any employer or employers, and (ii) any workmen or any trade union or trade unions consisting of workmen, and (b) which relates to the terms and conditions of employment of any workman, or to the privileges, rights or duties of any employer or employers or any workmen or any trade union or trade unions consisting of workmen, or to the manner of settlement of any industrial dispute. For the purposes of this Act, the President may from time to time appoint a panel, of not less than five persons, from which industrial courts shall be constituted as herein after provided. An industrial court consists of three persons, a member of the court nominated by the Minister shall be the president of the court nominated by the Minister shall be the president of the court. Non Statutory means Not fixed by law Facility means buildings, services, equipment, etc. that are provided for a particular purpose: Keep employee Loyal content Differentiate the company Attract talent

Leadership position on workplace safety even before Thomas J. Watson, Jr. issued first formal policy in 1967 Well Being Management System the companys holistic approach to managing the health and safety of employees wherever they work. At-home work location Employee has access to qualified physicians, nurses. Preventive and wellness program Life at Home Work/life balance program Flexible work options Employee assistance program Health promotion Life in the workplace Accident/Illness Prevention Quality of workplace environment Quality of facilities Healthcare management programs Life at Home Disability Management Conditions Management Life in the workplace Progressive return to work Onsite Programs Express wellness onsite is a program that is offered at select US sites, that provide important health screenings for cholesterol, blood pressure, glucose, body fat percentage, and bone density , as well as welfare coach consultation and goal setting. Employees can access health and wellness programs without leaving their home or office. In US, Virtual Fitness Center (VFS) can be used by employees to help make fitness a part of their daily lives. Online Programs Accessible 24 x 7 from any computer in Internet Employees are able to set goals, track their activities and chart their success and stay focused on fitness goal. Health and Wellness Companion Interactive online health information tool to make them informed choices about their health. They can learn about prescription, and nonprescription medications, evaluate their health risk and discover ways to improve their health including better nutrition, stress management, and maintaining a healthy weight. Healthy Living Rebate Program for employee who dont smoke or if they do, are willing to participate in an IBM sponsored working cessation program can receive a $150 cash rebate. Virtual Fitness Center Routine of physical activity and log their performance

IBM provides a range of accommodations and assistive devices for employees who have disabilities, including: Constructing ramps, power doors, parking facilities and other accommodations to provide access for people with impaired mobility. Captioning videotapes and providing sign-language interpreters and note takers for classes and meetings for employees who are deaf or hard of hearing. Recording company publications on audiocassette for employees and retirees who are visually impaired. Providing travel assistance for employees with mobility impairments. Providing adaptive services or modifications such as screen readers, display-screen magnifiers, keyboard guards, real-time captioning of meetings and Webcasts, and telecommunications devices and telephone amplifiers to enable people with disabilities to use work-related equipment. Two new IBM Accessibility Centre developments also provide IBM employees with disabilities with enhanced assistive technology tools and options: Home Page Reader v3.04, provides employees with disabilities with a range of new capabilities, including the ability to read accessible, tagged PDF documents and Macromedia Flash content, and a new zoom feature that enlarges everything on a Web page. aDesigner is a disability/barriers simulator that helps Web designers test the accessibility of Web pages for people who are visually impaired. The software program is now available on IBM alphaWorks for download. Portable computers are being used everywhere today. Work can be performed anywhere anytime. IBMs ergonomics program is for remote and mobile workers with a focus on communicating the availability of ergonomic accessories to our employees as well as continuing an education campaign on healthy computing practices and behaviours worldwide. Stock options Intel University Tuition Assistance Mentoring Career Opportunities Flexible work schedules Compressed work weeks and alternate work schedules Telecommuting Home office options Part-time employment Job share Childcare assistance Resource and referral services Work/Life seminars and training Employee discounts Onsite convenience stores Fitness centres and recreation facilities Nursing mothers rooms Health and wellness benefits Employee groups and clubs Family events Rideshare and transportation programs Intel volunteer programs Geographically dispersed teams Paid time off (including sabbaticals in the United States) Leaves of absence Improve the lives of employee Employee loyalty increases Employee identifies themselves with company Employee satisfaction increases Attrition rate goes down Enhance the work life of employee Employee remains healthy, absenteeism lowers increasing the productivity Employee get lazy Employee may feel they are getting a free ride Not everybody avails the facilities like gym hence employees do not get healthy

ANOTHER PRESENTATION ON PROVIDENT FUND ACT Contents Objectives of the Act Employees Provident Fund Organisation (EPFO) Benefits of Employees Provident Fund Important Definitions Employer Contribution Employee Contribution Administration of the Fund Advances/Withdrawals & Final Withdrawal Schemes Under the Act 1. Employees Family Pension Scheme 2. Employees Deposit Linked Insurance Scheme 3. Employees Pension Scheme Achievements of EPF Conclusion Whats this Act mean Employees Provident Fund Act 1952 provides security for OLDAGE to the industrial workers who are not able to save out of their meagre emoluments for their future. Objectives of the Act Employees Provident Fund part of social security promoting and securing the well being of the employees by way of provident fund, family pension and insurance to them. Inculcates a habit of saving amongst workers Employees contributing sums to the Provident Fund Employees Provident Fund Organization (EPFO) The Employees Provident Fund 1952, provides for compulsory provident fund, pension and deposit linked insurance in factories / establishments employing 20 or more employees in scheduled industries, which is implemented through offices of Employees Provident Fund Organization. Benefits of Employee Provident Fund A member of the provident fund can withdraw full amount at the credit in the fund on retirement from service after attaining the age of 55 years. Full amount in provident fund can also be withdraw by the member under the following circumstance: A member who has not attained the age of 55 years at the time of termination of service. A member is retired on account of permanent and total disablement due to bodily or mental infirmity. On migration from India for permanent settlement abroad or for taking employment abroad. The payment of provident fund be made after complementing a continuous period of not less than two months immediately preceding the date on which the application for withdrawal is made by the member: Where a member is discharged and is given retrenchment compensation under the Industrial Dispute Act, 1947. Retrenchment Compensation: It is received by a workmen under the industrial disputes Act or Under a Contract of from his Employer at the time of his Retrenchment or on the closure of Transfer of the

business of the employer will be exempted as a) Amount calculate in accordance with the provision of the Industrial Dispute Act. Or b) Rs.500000 (whichever is less, is exempt) Important Definitions Appropriate Government [Section 2(a)]: Establishments under control of Central Government or in relation to an establishment connected with railway company or branches in more than one state and in relation with the State Government Basic Wages [Section 2(b)]: All emoluments earned by employee while on duty or on leave or on holiday with wages in terms of the contract of employment which are paid or payable in cash but does not include: (i) the cash value of any food concession (ii) dearness allowance, house rent allowance, overtime allowance, bonus, commission payable to employee in respect of his employment Contd Contribution [Section 2(c)]: Contribution means a contribution payable in respect of a member or an employee to whom the Insurance Scheme applies. Controlled Industry [Section 2(d)]: It means any industry the control has been declared by the Central Government to be expedient in the public interest. Employer [Section 2(e)]: The owner or occupier of the factory or the person of authority having the ultimate control over the affairs of establishment. Employee [Section 2(f)]: A person who is employed for wages in any kind of Contd Factory [Section 2(g)]: Premises including the precincts thereof in any part of which a manufacturing process. Family pension Fund [Section 2(gg)]: means established under the Family pension Scheme Family Pension Scheme [Section 2(ggg)]: Employees Family Pension Scheme framed under Section 6A (Consolidated Annual Contribution Statement for the currency period) Fund [Section 2(h)]: means Provident established under the Scheme Contd Industry [Section 2(i)]:

Industry added to the Schedule by notification under Section 4 (Contribution card for employees other than monthly paid employees for the period) Insurance Fund [Section 2(i-a)]: Deposit linked insurance Fund established under section 6(c) Insurance Scheme [Section 2(i-b)]: means Employees Deposit Linked Insurance Scheme framed under Section 6(c) Contd Manufacturing process [Section 2(i-c)]: any process for making, repairing, finishing, packing any article or substance with a view to its use, sale, transport etc. Member[Section 2(j)]: member of the Fund Occupier of the factory [Section 2(k)]: Person who has ultimate control over the affairs of the factory where the affairs are entrusted to the managing agent. Employer/Employees Contribution Particulars Employers Contributio n Employees Contributio n Statutory PF Amount is not taxable Fully exempt RPF Amount is not taxable 12% of salary exempt 9.5% of P.A Interestexe mpt URPF Amount is not taxable Salary fully exempt Fully exempt PPF Amount is not taxable He does not contribute Fully exempt Interest on Balance After retirement Amt recorded at the time of Maturity Fully exempt Fully exempt Fully exempt Taxable Fully exempt Employers contribution

Section 6 (Return of the Contribution Cards sent to the Commissioner on the expiry of the period of currency) of the act provides that contribution which shall be paid by the employer to the Fund shall be 8-1/3% of the basic wages, DA, RA if any for the time being payable to each of the employees whether employed by him directly or through a contractor Employees Contribution The employees contribution shall be equal to the contribution payable by the employer in respect of him an amount not exceeding 813% of Basic wages, DA and RA, if any. Employees if they desire may make contribution exceeding this amount subject to the condition that employer shall not under any obligation to contribute over and above the contribution payable under the Act. Administration of the fund Board of Trustees or Central Board: Section 5A(Return of Employees qualifying for membership of the Employees Provident Fund for the first time during the month) provides the administration of the Fund and notification given the Central Government and it is extends by Board of Trustees to: (a) (b) (c) (d) A Chairman and a Vice-Chairman to be appointed by the Central government Not more than 15 persons to be appointed by the Central Government from amongst its officials Not more than 15 persons representing government of such States as the Central Government may specify in this behalf appointed by CG 10 persons representing employers of the establishing to which the Schemes applies, appointed by the CG after consultation with such organizations of employers/employees as may be recognised by the CG in this behalf. Advances/Withdrawals Non refundable advance for payment of premia towards policies of Life Insurance of a member Withdrawal for purchasing a dwelling house or flat or for construction of house including acquisition of a suitable site and necessary alterations for the improvement of the house. Withdrawals for repayment of loans in special cases Non-refundable in case of: (a) hospitalization lasting one month or more (b) major surgical operation in a hospital (c) suffering from T.B., leprosy, Paralysis for the treatment of which leave has been granted by the employer Non-refundable advance for (i) surgical operation or daughter/sons marriage or any member of the family (ii) for member affected by cut in the supply of electricity or incase of property damaged by calamities. (iii) or for physically handicapped members for purchasing an equipment Final Withdrawal Full accumulations with interest thereon are refunded (i) in the event of death, permanent disability (ii) retrenchment or migration from India for permanent settlement abroad, voluntary retirement, transfer

to an establishment not covered under the Act With the permission of commissioner or any subordinate officer to him, a member is allowed to draw full amount when he ceases to be in employment and has not employed in any establishment to which the Act applies for a continuous period of atleast 2 months. The Employees Family Pension Scheme This scheme provides Family Pension and Life assurance benefit to the employees The Central government provides long-term financial security to the families of industrial employees Membership of Employees Family Pension Scheme Retention of Membership: Can Continue to be a member upto age 60 Or quit the service and withdraws Or dies during the period of reckonable service Family Pension Fund: The contribution from one and 1/6% of employees pays an equal amount of one and 1/6% from and out of employees contribution is remitted by the employer to the Family Pension Fund The Employees Deposit-linked Insurance Scheme This Act amended in 1976 by Central Government The purpose of the scheme is providing life insurance benefit to the employees of any establishment Contribution to the Insurance Fund: Employers pay 0.5% of the total emoluments Administrative Expenses: Employers are required to pay at the rate of 0.01% The Central Government also meets the expenses at the rate of 0.005% Nomination: The nomination made by a member under the Employee Fund Scheme is treated as nomination under this scheme Benefit Payable: On the death of an employee, the persons entitled receives an additional amount equal to the average balance in the provident fund account The Employees Pension Scheme, 1995 Under this scheme pension at the rate of 50% of pay is payable to the employees on retirement on completion of 33yrs of service Minimum 10yrs service is required for entitlement to pension Depending upon salary and service at time of death pension ranges from Rs.450 to Rs.2500/month The Central Government also contributes at the rate of 1.16% to the scheme Contd Employer not to reduce wages: It prohibits an employer from reducing directly or indirectly the wages of any employee to whom the Insurance Scheme applies Inspector: The appropriate Government by

notification in the Official Gazette appoint such persons as it thinks fit to be inspectors for the purpose of this Act or the Pension Scheme or the Insurance Scheme The inspector appointed exercise powers for the purpose of inquiring to the correctness of any information furnished in connection with this Act Achievements of Employees Provident Fund The coverage of benefits of PF, family pension and deposit linked insurance increased from 2.31 crore subscribers as on 31.03.1998 to nearly 3.95 crore subscribers as on 31.03.2003 A nationally unique Social Security Number for each worker would be provided. The scheme was launched by way of a Reinventing EPF India programme on 25.02.2003 so as to reduce claim settlement from 30 days to 2-3 days only Any Time Any Where access for a member to service for settlement of claim or for information relating to account balance. Creates a facilitating environment and capacity for geometric growth in membership Additional facilities of disbursement of pension through 26000 post offices has been introduced so as to benefit the workers who after retirement go back to their native places located in rural and far flung areas A new Directorate of recovery has been approved to step up recovery of EPF dues. Conclusion On the basis of the above analysis, the lists of classes of establishments other than factories be removed, extending the provisions of the Employees' Provident Fund Act 1952 and the schemes framed there under to all establishments, irrespective of their activities. This will enlarge the scope of social security benefits covering the workers engaged in both the organized or non-organized sector. References Book References: Human Resources Management by T.N Chabbra Website References: http://www.corpmen.com/labourlaws/epfmpa195 2/epf_brief.htm http://epfindia.nic.in/epf.htmanaging safety in the John Jacob PGM07060555 workplace Dimensions of safety People safety Machine and Material safety Product safety Safety legislation Factories Act 1948: No young person allowed to work on dangerous machines without training or supervision (Sec 23) If there is risk of injury to the eyes then due protection must be provided to the worker. (Sec 35) Those persons working in gas chambers or related areas must wear gas masks for protection. (Sec 36) In every factory, precautions and all measures to ensure safety against fire should be applied. (Sec 38) If it appears to the Safety Inspector that a certain part of the building or machinery is not safe to use, then

he can prohibit its use and recommend changes to be made. (Sec 40) Every factory with more than 1000 employees must have a Safety Officer. (Sec 40B) A Safety Committee must be setup in those relevant industries and must have equal represent management and workers. (Sec Case study 1: Vista Foods Pvt. Ltd. Core business: Food processing (Supplier for McDonalds) Products: Chicken and Veg Burgers Location: Taloja, Panvel Capacity: 8000 metric tonnes/annum Area: 1500 sq. metres Employees working: 180 Safety measures (people) Safety sensors Safety lids Fire extinguishers (2 per line, 2 lines) Assembling points Flowchart for emergency Training for fire emergency (annual) Medical checkup (annual) Eye washers Emergency switch Emergency exits Antiskid on floors and staircase Safety Helmets Vehicular inspection Mock drills once a year Water hydrants Siren Smoke alarm First aid Other highlights External training One accident in 1998 Safety audit by Intratec (Score:88.5%) Investment in safety has gone up. Case Study 2: Vizag Steel Plant Core business: Steel manufacturing Products: Steel, manganese, alloys Location: Vizag Capacity: 4 million tonnes (annual) Area: 1000 acres Employees working: 17, 500 Safety measures Safety engineering dept. and committee Safety pass CISF Fire Unit Automated fire safety devices Mock drills (Bi-monthly) Training programs Material handling Gas safety Road safety Fire fighting First Aid and safety health precautions Occupational health hazards Mock Drill Other highlights Investment in safety: Rs 3 crores (procurement) and Rs 5-6 lakhs (training) Two major accidents in the last 5 years. Training done internally but there are external safety audits done (OSHAS 18001) Safety Innovation Award in 2006.