P.G Department of Social Work,M.S.C.A.

S 1
LABOUR LAWS

The Payment of Gratuity Act, 1972

 It shall apply to every factory, mine, oilfield, plantation, port and railway company,
every shop or establishment
 Sec 2-g"family", in relation to an employee, shall be deemed to consist of –
(i) In the case of a male employee, himself, his wife, his children, whether
married or unmarried, his dependent parents and the dependent parents of his wife
and the widow and children of his predeceased son, if any,
(ii) In the case of a female employee, herself, her husband, her children,
whether married or unmarried, her dependent parents and the dependent parents
of her husband and the widow and children of her predeceased son, if any:
Explanation: Where the personal law of an employee permits the adoption by him of a
child, any child lawfully adopted by him shall be deemed to be included in his family, and
where a child of an employee has been adopted by another person and such adoption is,
under the personal law of the person making such adoption, lawful, such child shall be
deemed to be excluded from the family of the employee;
 Sec2-q "retirement" means termination of the service of an employee otherwise than on
superannuation;
 Sec2-r "superannuation", in relation to an employee, means the attainment by the
employee of such age as is fixed in the contract or conditions of service at the age on the
attainment of which the employee shall vacate the employment;
 Sec2-s "wages" means all emoluments which are earned by an employee while on duty
or on leave in accordance with the terms and conditions of his employment and which are
paid or are payable to him in cash and includes dearness allowance but does not include
any bonus, commission, house rent allowance, overtime wages and any other allowance.

Explanation: - Wages =Basic pay + Dearness allowance

2A. CONTINUOUS SERVICE

An employee shall be said to be in continuous service for a period if he has, for that period, been
in uninterrupted service, including service which may be interrupted on account of sickness,
accident, leave, absence from duty without leave lay off, strike or a lock-out or cessation of work
not due to any fault of the employee.
 P.G Department of Social Work,M.S.C.A.S 2
LABOUR LAWS

Continuous service applies to the following circumstances:-

1. Lay off under the Industrial Disputes Act, 1947;

2. Leave with full wages, earned in the previous year;
3. Absent due to temporary disablement caused by accident arising out of and in the course
of his employment; and
4. In the case of a female, she has been on maternity leave; so, however, that the total period
of such maternity leave does not exceed twelve weeks.

N
o
-
n
O
h
t
r
e
e
n
a
I
T
O
C
l
B
i
m
1
2
S
o
N
s
h
g
t
w
u
Y
9
/
y
d
0
4
r
h
w
t
c
i
S
U
O
n
o
(
)
a
s
e
7
r
m
b
%
5
l
f
U
a
n
r
h
n
a
s
h
l
t
r
e
o
f
d
g
i
y
9
1
w
k
b
5
m
6
/
0
2 x
i
s
h
t
n
e
s
a
c
k
e
i
w
a
E
y
n
s
t
S
C
I
V
R
d
h

4. PAYMENT OF GRATUITY

Eligibility  Termination of employment after rendered continuous service not less

: than 5 years.
 Superannuation,
 Retirement or Resignation
 Death or disablement due to accident or disease: Provided that the
completion of continuous service of five years shall not be necessary
where the termination of the employment of any employee is due to death
or disablement.
In the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if
no nomination has been made, to his heirs, and where any such nominees or heirs is a minor, the
share of such minor, shall be deposited with the controlling authority who shall invest the same
 P.G Department of Social Work,M.S.C.A.S 3
LABOUR LAWS

for the benefit of such minor in such bank or other financial institution, as may be prescribed,
until such minor attains majority.

The amount of gratuity payable to an employee shall not exceed 10,00,000

Can gratuity amount be forfeited?

Sec 6 (a) the gratuity of an employee, whose services have been terminated for any act, willful
omission or negligence causing any damage or loss to, or destruction of, property belonging to
the employer, shall be forfeited to the extent of the damage or loss so caused.

(b) The gratuity payable to an employee may be wholly or partially forfeited –

(i) If the services of such employee have been terminated for his riotous or
disorderly conduct or any other act of violence on his part, or

(ii) If the services of such employee have been terminated for any act which
constitutes an offence involving moral turpitude, provided that such offence is committed by him
in the course of his employment.

4A. COMPULSORY INSURANCE

 Every employer, other than governmental establishments, obtains insurance from the Life
Insurance Corporation of India established under the Life Insurance Corporation of India
Act, or any other prescribed insurer.
 Exemptions: - Every employer who have approved gratuity funds of its own (or) every
employer employing 500 or more persons who establishes an approved gratuity fund
 Where an employer fails to make any payment by way of premium to the insurance he
shall be liable to pay the amount of gratuity due under this Act including interest, if any,
for delayed payments.
 P.G Department of Social Work,M.S.C.A.S 4
LABOUR LAWS

 Contravening leads to 10,000 and if continued 1,000/day

6. NOMINATION

(1) Each employee, who has completed one year of service, shall make nomination for the
payment of gratuity

(2) An employee may in his nomination, distribute the amount of gratuity payable to him, under
this Act amongst more than one nominee.

(3) If an employee has a family at the time of making a nomination, the nomination shall be
made in favour of one or more members of his family, and any nomination made by such
employee in favour of a person who is not a member of his family, shall be invalid.

(4) If at the time of making a nomination the employee has no family, the nomination may be
made in favour of any person or persons but if the employee subsequently acquires a family,
such nomination shall become invalid and the employee shall make a fresh nomination in favour
of one or more members of his family.

(5) A nomination may, be modified by an employee at any time, after giving to his employer a
written notice in such form and in such manner as may be prescribed, of his intention to do so.

(6) If a nominee predeceases (dies before) the employee, the interest of the nominee shall revert
to the employee who shall make a fresh nomination, in the prescribed form, in respect of such
interest.

(7) Every nomination, fresh nomination or alteration of nomination, as the case may be, shall be
sent by the employee to his employer, who shall keep the same in his safe custody.

7. DETERMINATION OF THE AMOUNT OF GRATUITY.

(1) A person who is eligible for payment of gratuity shall send a written application to the
employer for payment of such gratuity.

(2) As soon as gratuity becomes payable, whether application is made or not, determine the
amount of gratuity and give notice in writing to the person to whom the gratuity is payable and
also to the controlling authority specifying the amount of gratuity so determined.
 P.G Department of Social Work,M.S.C.A.S 5
LABOUR LAWS

(3) Maximum time limit = 30 days, if not paid within 30days simple interest is payable, interest
is not payable if fault is on employee (or) employer has obtained permission in writing from the
controlling authority for the delayed payment on this ground.

Controlling Authority:-
Re-appeal:- 60days
1. Inquire & give opportunities for both employee and employer
2. Controlling authority shall direct the employer to pay extra
amount if employee is subjected to pay more gratuity than
entitled.
3. The controlling authority shall pay the amount deposited,
including the excess amount, if any, deposited by the
employer, to the person entitled thereto.
4. Amount can be paid to employee or nominee

8. RECOVERY OF GRATUITY

If the amount of gratuity payable under this Act is not paid by the employer, within the
prescribed time, the controlling authority shall, on an application made to it in this behalf by the
aggrieved person, issue a certificate for that amount to the Collector, who shall recover the same,
together with compound interest, Provided employer must be given an opportunity.

SECTION-9

Actions Penalties
 Avoiding any Imprisonment for a term which may extend to six months
payment (or)Rs.10,000(or)Both
 False statement
 P.G Department of Social Work,M.S.C.A.S 6
LABOUR LAWS

 False representation
Contravening of provisions
by employer
Non-payment of any
gratuity
Imprisonment for a term which shall not be less than three months but
which may extend to one year, or with fine which shall not be less
than Rs.10,000but which may extend to Rs,12,000, or with both.
Punishable with imprisonment for a term which shall not be less than
six months but which may extend to two years.

LIST OF FORMS:-

Notice of applicability for new

Form A
establishment
Notice Of Change in the
particulars of the establishment
Form B
like name, address or nature of
business
Notice of closure Form C
Notice for excluding husband
Form D
from family
Notice of withdrawal of husband
FormJ E
Form
from family
Nomination by the new employee Form F

Change of Nomination Form G

Modification Of Nomination Form H

Application for gratuity by an
Form I
employee
Application for gratuity by a
nominee
Application for gratuity by a
Form K
legal heir
Notice for payment of gratuity to
Form L
employee
Notice rejecting payment of
Form M
gratuity
Application for direction to
Form N
controlling Authority

Notice for payment of Gratuity

from controlling authority
Form R
Notice for payment of Gratuity
as determined by appellate Form S
authority

Abstract of the Act & Rules Form U

 P.G Department of Social Work,M.S.C.A.S 7
LABOUR LAWS

The Maternity Benefits Act, 1961

An Act to regulate the employment of women in certain establishments for certain periods before
and after child-birth and to provide for maternity benefit and certain other benefits.

2. Application of Act: - (1) It applies, in the first instance, to every establishment being a
factory, mine or plantation including any such establishment belonging to Government

3. Definitions: -

(j) "Miscarriage" means expulsion of the contents of a pregnant uterus at any period prior to or
during the twenty sixth week of pregnancy but does not include any miscarriage, the causing of
which is punishable under the Indian Penal Code (45 of 1860)

(n) "Wages" means all remuneration paid or payable in cash to a woman, if the terms of the
contract of employment, express or implied, were fulfilled and includes –basic
pay,D.A,H.R.A,Incentive Bonus, the money value of the confessional supply of food grains and
other articles.

But does not include any bonus other than incentive bonus; O.T; any contribution
paid or payable by the employer to any pension fund or provident fund or for the benefit of the
woman under any law for the time being in force; and any gratuity payable on the termination of
service.

4. Employment of, or work by, women prohibited during certain periods

Non-employment of woman under the following circumstances:-

 During the six weeks immediately following the day of her delivery or her
miscarriage
 Any work which is of an hazardous nature or which involves long hours of standing
 Or which in any way is likely to interfere with her pregnancy or the normal
development of the fetus
 Or is likely to cause her miscarriage or otherwise to adversely affect her health
 the period of one month immediately preceding the period of six weeks, before the
date of her expected delivery
 any period during the said period of six weeks for which the pregnant woman does
not avail leave of absence under section 6
 P.G Department of Social Work,M.S.C.A.S 8
LABOUR LAWS

SEC(5). RIGHT TO PAYMENT OF MATERNITY BENEFIT

P
l
u
F
n
e
m
y
a f
o
t
e
t
a
M
N
r
o
e
l
b
a
y
o
p
O
M
O
M
u
m
a
-
:
y
t
l
b
i
p
w
A
F
M
6
g
E
t
e
x
k
s
m
y
a
p
i
f
n
e
b
t
r
v
i
l
e
s
y
a
&
d
u
w
h
t
g
k
f
om
di
a r
i
n
l
n
r
o
f
y
d
n
s
e
f
o
t
n
e
2
1
-
r
l
i
t
f
o
i
r
6
t
p
g
n
o
i
h
c
t
u
o
y
a
b
l
y
t
0
6
g
n
i
k
r
w
d
a
1
o
u
l
c d
h
t
i
s
y
a
g
e
h
t
n

l
a
e
m
h
t
w
a
l
y
i
n
r
k
o
s
2
p
1 i
n
l
t
s
f
o
y
v
a
e
-
m
i
n
r
t
a
d
e
h
s
e
i
d
e
y
a
f
d
o
h
t
m
n
p
l
v
r
u
e
i
d
s y
t
f
o
r
e
h
s
n
e
B
hf
=
7
*
2
4
y
r
v
i
l
e
1
(
8
d
a
i
f
n
b
t
a
e
d
h
t
a
e
d i
t
)
s
y
a
d

6. Notice of claim for maternity benefit and payment thereof:-

 Women must give a written notice stating that her maternity benefit and any other
amount to which she may be entitled under this Act may be paid to her or to such person
as she may nominate in the notice and that she will not work in any establishment during
the period for which she receives maternity benefit.
 In the case of a woman who is pregnant, such notice shall state the date from which she
will be absent from work, not being a date earlier than six weeks from the date of her
expected delivery.
 Any woman who has not given the notice when she was pregnant may give such notice as
soon as possible after the delivery.
 The employer shall permit such woman absent herself from the establishment until the
expiry of six weeks after the day of her delivery.
 Maternity benefit can be paid in advance by the employer with proof and balance amount
will be settled within 48 hrs of proof of delivery
 Failure of notice from woman does not deprive the woman from availing maternity
benefit.

Payment of maternity
Sec-7 benefit in case of death To the nominee /legal representative
of a woman
Payment of medical Rs.2500 if no pre-natal confinement and post-natal care is
Sec-8
bonus provided for by the employer free of charge.
 P.G Department of Social Work,M.S.C.A.S 9
LABOUR LAWS

Leave with wages at the rate of maternity benefit-6 weeks

Sec-9 Leave for miscarriage
following the day of miscarriage
Leave for illness arising
out of pregnancy, Leave with wages at the rate of maternity benefit for a
Sec-10
delivery, premature birth maximum period of 1 month
of child, or miscarriage
In addition to the interval for rest allowed to her during
work, should allow two breaks of the prescribed duration
Sec-11 Nursing breaks
for nursing the child until the child attains the age of 15
months.
1.Unlawful for her employer to dismiss/give notice/expiry of
notice during the actual maternity leave
2. a. Discharge or dismissal of a woman at any time during
her pregnancy, shall not have the effect of depriving her of
the maternity benefit or medical bonus
Dismissal during
Sec-12 2. b. dismissal is for any prescribed gross misconduct the
absence of pregnancy
employer may, by order in writing communicated to the
woman, deprive her of the maternity benefit or medical
bonus or both.
3. Any woman deprived of maternity benefit or medical
bonus or both may, within 60 days from the date of order
should appeal to such authority.
Sec-13 No deduction of wages No deduction due to nature of work (as exempted in
in certain cases hazardous process) and breaks for nursing the child.
Sec-18 Forfeiture of maternity If a woman works in any establishment when permitted in
benefit maternity leave by the actual employer, she shall forfeit her
claim to the maternity benefit for such period.
Sec-19 Abstract of Act and rules An abstract of the provisions of this Act and the rules with
there under to be appropriate language shall be exhibited in a conspicuous
exhibited place by the employer in which women are employed.
Sec-20 Registers, etc Every employer shall prepare and maintain such registers,
records and muster-rolls and in such manner as may be
prescribed.
Sec-21 Penalty for Imprisonment which may extend to 3 months, or with fine
contravention of Act by which may extend to 500 rupees, or with both
employer
Sec-22 Penalty for obstructing Failure of production of registers leads to imprisonment
Inspector which may extend to 3 months, or with fine which may
extend to 500 rupees, or with both
LIST OF FORMS:-

Form-D Form-E Form-N Form-J Form-A Form-M Form-K

Notice Form of Details of Abstract of the Muster Employment, Annual Return (
claiming receipt of Payment Act to be Roll Dismissal, Refer Factories
Maternity Mat. exhibited Payment of Act Annual
benefit Benefit Bonus Etc., Return)
The Minimum Wages Act, 1948
 P.G Department of Social Work,M.S.C.A.S 10
LABOUR LAWS

An act to provide for fixing minimum rate of wages in certain employments. Where it is
expedient to provide for fixing minimum rates of wages in certain employments.

2. Interpretation

(d) "Cost of living index number" in relation to employees in any scheduled employment in
respect of which minimum rates of wages have been fixed means the index number ascertained
and declared by the competent authority by notification in the Official Gazette to be the cost of
living index number applicable to employee in such employment;

(h) "wages" means all remuneration capable of being expressed in terms of money which would
if the terms of the contract of employment express or implied were fulfilled be payable to a
person employed in respect of his employment or of work done in such employment and
includes house rent allowance but does not include -

(i) The value of -

(a) Any house accommodation supply of light water medical attendance or

(b) Any other amenity or any service excluded by general or special order of the
appropriate government;

(ii) Any contribution paid by the employer to any person fund or provident fund or under any
scheme of social insurance;

(iii) Any traveling allowance or the value of any traveling concession;

(iv) Any sum paid to the person employed to defray special expenses entailed on him by the
nature of his employment; or

(v) Any gratuity payable on discharge;

3. Fixing of minimum rates of wages –

 The appropriate government may fix the minimum rates of wages payable to employees
& review in every 5 years
 The appropriate government may fix a minimum rate of wages for time work, piece
work, remuneration to apply in the case of employees employed on piece work for the
 P.G Department of Social Work,M.S.C.A.S 11
LABOUR LAWS

purpose of securing to such employees a minimum rate of wages on a time work basis (a
guaranteed time rate") &overtime rate.
 In fixing or revising minimum rates of wages under this section:-
 Different minimum rates of wages may be fixed for different
scheduled employments; different classes of work in the same
scheduled employment; adults adolescents children and apprentices;
different localities;
 minimum rates of wages may be fixed by any one or more of the
following wage periods; namely:Hour,day,month; by such other larger
wage-period as may be prescribed;

4. Minimum rate of wages

Any minimum rate of wages fixed or revised may consist of: -

1. Basic rate of wages + cost of living allowance

2. Basic rate of wages, with or without the cost of living allowance + the cash value of the
concessions in respect of suppliers of essential commodities at concession rates
3. An all-inclusive rate allowing for the basic rate the cost of living allowance and the cash
value of the concessions if any.

5. Procedure for fixing and revising minimum wages

The appropriate government shall either appoint as many committees and sub-committees to fix
minimum wages, after considering the advice of the committee or committee appointed may
revise the minimum rates of wages in respect of each scheduled employment.

11. Wages in kind

 Minimum wages payable under this Act shall be paid in cash.

 Official Gazette authorizes the payment of minimum wages either wholly or partly in
kind.
 Official Gazette authorizes the provision (essential commodities) of such supplies at
concessional rates.

12. Payment of minimum rate of wages

 P.G Department of Social Work,M.S.C.A.S 12
LABOUR LAWS

Employer shall pay to every employee engaged in a scheduled employment under him wages at a
rate not less than the minimum rate of wages fixed by such notification for that class of
employees in that employment without any deductions except as may be authorized within such
time and subject to such conditions as may be prescribed.

13. Fixing hours for normal working day etc

In regard to any scheduled employment minimum rates of wages in respect of which have been
fixed under this Act the appropriate government may –

 Fix the number of hours of work(one or more specified intervals)

 Provide for a day of rest in every period of seven days and for the payment of
remuneration in respect of such days of rest
 Provide for payment for work on a day of rest at a rate not less than the overtime rate.

These provisions are not applicable in cases like 1.employees engaged on urgent work or in any
emergency, 2.employees engaged in work in the nature of preparatory or complementary work,
3.employees whose employment is essentially intermittent; 4.employees engaged in any work
which for technical reasons has to be completed before the duty is over; 5.except at times
dependent on the irregular action of natural forces.

14. Overtime

Where an employee whose minimum rate of wages is fixed works on any day in excess of the
number of hours than the normal hours, the employer shall pay him for every hour or for part of
an hour so worked in excess at the overtime rate fixed under this Act

15. Wages of worker who works for less than normal working day

Employee will receive the fixed minimum rates of wages even though he has been employed for
than minimum working hours on that particular day. But it is not applicable if: -

 Unwillingness to work
 And not by omission of employer to provide him work

16. Wages for two or more classes of work

 P.G Department of Social Work,M.S.C.A.S 13
LABOUR LAWS

Where an employee does two or more classes of work to each of which a different minimum rate of
wages is applicable the employer shall pay to such employee in respect of the time respectively occupied
in each such class of work wages at not less than the minimum rate in force in respect of each such class.

17. Minimum time rate wages for piece work

Where an employee is employed on piece work for which minimum time rate and not a minimum piece
rate has been fixed under this Act the employer shall pay to such employee wages at not less than the
minimum time rate.

18. Maintenance of registers and records

Every employer shall maintain such registers and records

22. Penalties for certain offences any employer who

Pays to any employee less than the minimum rates of wages & contravenes any rule or order shall be
punishable with imprisonment for a term which may extend to six months or with fine which may extend
to five hundred rupees or with both

22A. General provision for punishment of other offences punishable with fine which may extend to
five hundred rupees.

Register Of fines Form I

Register of Deductions for Damages or Loss Form II

Muster Roll (not needed if maintained in other Acts) Form V

Wage Register  

Overtime Register Form IV

Wage Slip (not needed if maintained in other Acts)  

Annual Return ( Refer Factories Act Annual Return) Form III

Abstract of the Act & Rules (To be displayed at conspicuous places) Form X

Inspection Book  

Employees Provident Fund and Miscellaneous Provisions Act, 1952

 P.G Department of Social Work,M.S.C.A.S 14
LABOUR LAWS

An Act to provide for the institution of provident funds, family pension funds and deposit linked
insurance fund for the employees in the factories and other establishments.

2. Definitions

(b) "basic wages" means all emoluments which are earned by an employee while on duty or on
leave or on holidays with wages in either case in accordance with the terms of the contract of
employment and which are paid or payable in cash to him but does not include :

 the cash value of any food concession;

 D.A+H.R.A+O.T+COMMISSION+BONUS+PRESENTS

(ll) "superannuation" in relation to an employee who is the member of the Pension Scheme
means the attainment by the said employee of the age of fifty-eight years".

5. Employees' Provident Funds Scheme

(1) The Central Government may by notification in the Official Gazette frame a Scheme to be
called the Employees' Provident Funds Scheme for the establishment of provident funds under
this Act for employees or for any class of employees and specify the establishments or class of
establishments to which the said Scheme shall apply and there shall be established as soon as
may be after the framing of the Scheme a Fund in accordance with the provisions of this Act and
the Scheme.

(1A) The Fund shall vest in and be administered by the Central Board constituted under section
5A.

6. Contributions and matters which may be provided for in the Scheme

 P.G Department of Social Work,M.S.C.A.S 15
LABOUR LAWS

CONTRIBUTION OF EMPLOYERS
EPF SCHEME
ESTABLISHMENTS declared as sick
other than the SICK ESTABLISHMENT
 employing 20 or more persons and  the rate of contribution is 10%
engaged in industry  less than 20 persons are employed.
 12% of the Basic pay,D.A, Cash  Any Establishment which has at the end of any
value of food concession and financial year accumulated losses equal to or
retaining allowance exceeding its entire net worth.
 maximum of Rs.6500/- per month.  Any Establishment engaged in manufacturing of
 Voluntary higher contributions are (a) Jute , (b) Beedi , (c) Brick , (d) Coir (other
also acceptable at the joint request than spinning sector), (e) Guar Gum
of the member and the employer Industries/Factories.
6A. The Employees' Pension Scheme
 From and out of employer's share  Eligibility:-1.superannuation pension retiring
of Provident Fund contributions pension or permanent total disablement pension
8.33% of the total wages limited to 2. widow or widower's pension children pension
Rs. 6500/- per month is segregated of orphan pension
and credited to the Employees' 6C. Employees' Deposit Linked Insurance Scheme
 No amount is recovered from employee's wages.
Pension Fund
Employer should pay 0.5% of total wages
 The Central Government also subject to a ceiling of Rs. 6500/- per month
 Admin charges:-not more than 1/4 th of
would contribute at the rate of 1.1 /
employer contribution
6% of total wages.

7A. Determination of moneys due from employers

 The Central Provident Fund Commissioner any Additional Central Provident Fund
Commissioner any Deputy Provident Fund Commissioner any Regional Provident Fund
Commissioner or any Assistant Provident Fund Commissioner may by order
(a) in a case where a dispute arises regarding the applicability of this Act to an establishment
decide such dispute; and(b) determine the amount due from any employer under any
provision of this Act the Scheme or the Pension Scheme or the Insurance Scheme as the
case may be and for any of the aforesaid purposes may conduct such inquiry as he may
deem necessary.
 P.G Department of Social Work,M.S.C.A.S 16
LABOUR LAWS

7C. Determination of escaped amount

Where an order determining the amount due from an employer under section 7A or section 7B
has been passed and if the officer who passed the order

(a) has reason to believe that by reason of the omission or failure on the part of the employer
to make any document or report available or to disclose fully and truly all material facts
necessary for determining the correct amount due from the employer any amount so due
from such employer for any period has escaped his notice;
(b) has in consequence of information in his possession reason to believe that any amount to
be determined under section 7A or section 7B has escaped from his determination for any
period notwithstanding that there has been no omission or failure as mentioned in clause
(a) on the part of the employer he may within a period of five years from the date of
communication of the order passed under section 7A or section 7B re-open the case and
pass appropriate orders re-determining the amount due from the employer in accordance
with the provisions of this Act

7D. Employees' Provident Funds Appellate Tribunal

A Tribunal shall consist of one person only to be appointed by the Central Government, Judge of
a High Court will be qualified.

7P. Transfer of certain applications to Tribunal

All applications which are pending before the Central Government under section 19A before its
repeal shall stand transferred to a Tribunal exercising jurisdiction in respect of establishments in
relation to which such applications had been made as if such applications were appeals preferred
to the Tribunal.

7Q. Interest payable by the employer

The employer shall be liable to pay simple interest of 12%p.a on any amount due from him under
this Act from the date on which the amount has become so due till the date of its actual payment
8
s
u
m
a
h
W
t
p
n
i
f
O
y
r
v
o
c
e
R
,
d
l
:
w
b
f
t
n
u
o
m
a
tt
.
1
c
a
h
t
e
m
n
o
e
h
u
s
M
v
R
A
(
b
i
d
a
r
t
n
C
a
r
t
n
c
N
I
.
B
8
f
d
h
o
e
l
b
a
m
f
v
s
y
o
n
m
d
+
)
E
a
f
i
t
r
e
c
u
b
i
r
t
n
o
+
c
f
y
v
r
g
a
h
C
I
L
D
s
'
E
d
l
e
m
i
e
l
b
a
o
r
p
v
e
R
A
.
D
+
t
n
o
d
i
c
n
m
u
b
a
B
'
l
p
m
y
r
v
e
m
h
i
l
b
a
t
s
c
n
w
a
'
y
l
p
e
m
o
r
f
.
2
s
r
d
n
t
e
A
a
m
s
l
a
n
r
p
y
b
a
t
n
o
r
e
c
i
f
O
r
y
o
l
p
m
e

11. Priority of payment of contributions over other debts

P.G Department of Social Work,M.S.C.A.S 17
LABOUR LAWS

Where any employer is adjudicated insolvent or, being a company, an order for winding up is made, the
amount due from the employer in relation to an establishment to which any Scheme or the Insurance
Scheme applies in respect of any contribution payable to the Fund or, as the case may be, the Insurance
Fund damages recoverable under section 14B, accumulations required to be transferred under sub-section
2 of section 15 or any charges payable by him under any other provision of this Act or of any provision of
the Scheme or the Insurance Scheme

OR

from the employer in relation to an exempted establishment in respect of any contribution to the
provident fund or any insurance fund in so far as it relates to exempted employees, under the rules
of the provident fund or any insurance fund, any contribution payable by him towards the Pension
Fund under sub-section 6 of section 17, damages recoverable under section 14B or any charges
payable by him to the appropriate Government under any provision of this Act, or under any of the
conditions specified under section 17.

12. Employer not to reduce wages, etc.

No employer shall reduce whether directly or indirectly, the wages of any employee to whom the
Scheme or the Insurance Scheme applies or the total quantum of benefits in the nature of old age
pension, gratuity, provident fund or life insurance to which the employee is entitled under the
terms of his employment, express or implied.
d
e
l
a
s
y
r
&
E
h
e
b
l
a
f
r
o
y
b
e
h
o
t
s
g
a
c
m
o
r
f
e
h
t
f
o
y
t
r
e
m
r
m
f
d
g
a
n
o
t
u
b
i
r
t
n
y
r
l
a
s
o
ti
n
e
 P.G Department of Social Work,M.S.C.A.S 18
LABOUR LAWS

Section Offence Penalty

14(1) avoiding any payment towards contributions & false Imprisonment for a term which
statement or false representation may extend to 1 year, or with fine
of RS.500 or with both.
14(1A) Non- payment of inspection charges, contributions, EDLI, imprisonment for a term which
Admin charges etc. may extend to 1 year
in case of default in payment of the employees’ contribution not be less than 1 year and a fine of
which has been deducted by the employer from the Rs.10,000
employees’ wages
Any other case not be less than 6 months and a
fine of Rs.5000
(2) who contravenes the Scheme, the Pension Scheme or the Imprisonment for a term which
Insurance Scheme may extend to one year, or with
fine which may extend to four
thousand rupees, or with both.

EMPLOYEES' DEPOSIT LINKED INSURANCE SCHEME, 1976

Introduction:

The Central Government with the motive of providing additional Social Security in the form of
Life Insurance to the family of the deceased member of the Provident Fund, introduced the
Employees Deposit Linked Insurance Scheme with effect from 1-8-1976 as provided under
Section 6(C) of the Employees' Provident Fund & MP Act, 1952. The benefit under the Scheme
is so devised that it acts as an incentive to the members to save more in their Provident Fund
Account. As the name of the Scheme says, the benefit is linked to the amount of accumulation in
the Provident Fund Account of the member.

Applicability:

The Scheme applies to all the establishments to which the Employees' Provident Fund Scheme
applies.

Membership:

All the members of the Employees' Provident Fund Scheme are covered as members of the
Employees' Deposit Linked Insurance Scheme also.

Contribution:

Under this Scheme, the member does not contribute any amount as contribution. However, the
employer pays an amount equal to 0.5% of the total wages paid to the members as contribution.

Administrative Charges:

As regards Administrative charges, the employer is required to pay an amount equal to 0.01% of
the wages subject to a minimum of Rs. 2/- per month.
 P.G Department of Social Work,M.S.C.A.S 19
LABOUR LAWS

Exemption: (Section 17(2A) of the Act and Para 28 of Employees’ Deposit Linked Insurance
Scheme, 1976)

The provisions are available as per Section 17(2A) of the Act and para 28(1) and 28(4) of the
Employees' Deposit Linked Insurance Scheme, 1976 for grant of exemption to an establishment
or to an employee or to a class of employees as the case may be, from the operation of all or any
of the provisions of the Scheme, where the Life Assurance benefit of the Scheme in the
establishment is more beneficial than the benefits provided under the statutory Scheme.

Inspection Charges:

An employer of an establishment exempted from the provisions of the Employees' Deposit

Linked Insurance Scheme is required to pay inspection charges at the rate of 0.005% subject to a
minimum of Re.1/- per month.

Assurance Benefit:

The benefit provided under the Employees' Deposit Linked Insurance Scheme is called
Assurance Benefit. On the death of the member while in service, the nominee or any other
person entitled to receive the Provident Fund benefits will, in addition to the Provident Fund,
receive the Assurance Benefit under Employees' Deposit Linked Insurance Scheme .

Scale of Assurance Benefit:

From 1-4-93 onwards the amount of Assurance Benefit payable is an amount equal to the
average balance in the amount of deceased in the Fund during the preceding 12 months or during
the period of his membership whichever is less, except where the average balance exceeds Rs.
25,000/- amount payable shall be Rs. 25,000/- plus 25% of the amount in excess of Rs.25,000/-
subject to a selling of Rs. 35,000/-. The Form prescribed for claiming the Assurance Benefits
under the Employees' Deposit Linked Insurance Scheme, 1976 , is Form 5(IF).

* w.e.f. 24.6.2000 the amount of benefits has been increased to 60,000/-

LIST OF FORMS
Employer registration for new establishment  

Nomination and declaration by new employee Form 2

Transfer of accumulation - after joinging of new employee Form 13

 P.G Department of Social Work,M.S.C.A.S 20
LABOUR LAWS

Return of contribution cards Form 6

Remittance  

Consolidated annual statement of contributions Form 6A

Application for financing a LIC policy out of PF accumulation ( employee share Form 14
alone)
Contribution card of individual members Form-3A

Information of Addition and deletion of members Form-5 / 10

Statement of contribution with receipted copy of challan Form-12 A

Full and final settlement of PF account - of left employee Form 19, 20

Claim for withdrawl of Pension account / Pension 10 C / 10 D

Application for claiming the assurance benefit under EDLI scheme 1976 Form 5 (IF)

Return of ownership - when change occurs Form 5A

FORM
FORMS FOR CLAIMING BENEFITS UNDER  THE EMPLOYEES' PROVIDENT FUND SCHEME
NO.
13 For transferring the Provident Fund account of a member from one establishment to another
(revised) establishment covered under the act / scheme.

14. Application for financing a life insurance policy out of Provident Fund account.

19. To be submitted by a member to withdraw his Provident Fund dues on leaving

service/retirement/termination.

20. In the event of death of member, this form is to be used by a nominee / family member to claim the
member's Provident Fund accumilation.
31. For the use of Provident Fund members to avail advances / withdrawals as provided in the scheme.

FORMS FOR CLAIMING BENEFITS UNDER THE EMPLOYEES' PENSION SCHEME '95
For claiming :Refund of Employer share., Withdrawl benefit, Scheme certificate for retention of
10-C
membership
To be submitted by the first claimant i.e. member orwidow/widower ororphan ornominee as the
10-D
case may be
Certificate to be submitted by pensioner
(Life Certificate/Non Re-Marriage Certificate)
FORMS FOR WITHDRAWAL OF INSURANCE FUNDS BENEFITS UNDER EMPLOYEES' DEPOSIT
LINKED INSURANCE SCHEME, 1976
To be preferred by the person eligible to receive the Employees' Provident Fund dues of the deceased
5(I.F.) member who died while in services
Statement Statement of Employees qualifying for membership as International Workers
IW - 1
Advance Stamped Receipt

The Payment of Wages Act, 1936

An Act to regulate the payment of wages to certain classes of employed persons.

2. Definitions

(vi) "wages" means all remuneration (whether by way of salary allowances or otherwise)
expressed in terms of money or capable of being so expressed which would if the terms of
 P.G Department of Social Work,M.S.C.A.S 21
LABOUR LAWS

employment express or implied were fulfilled by payable to a person employed in respect of

his employment or of work done in such employment and includes - 

(a) any remuneration payable under any award or settlement between the parties or order
of a court; 

(b) any remuneration to which the person employed is entitled in respect of overtime work
or holidays or any leave period; 

(c) any additional remuneration payable under the terms of employment (whether called a
bonus or by any other name); 

(d) any sum which by reason of the termination of employment of the person employed is
payable under any law contract or instrument which provides for the payment of such sum
whether with or without deductions but does not provide for the time within which the
payment is to be made; 

(e) any sum to which the person employed is entitled under any scheme framed under any
law for the time being in force, but does not include - 

(1) any bonus (whether under a scheme of profit sharing or otherwise) which does not form
part of the remuneration payable under the terms of employment or which is not payable
under any award or settlement between the parties or order of a court; 

(2) the value of any house-accommodation or of the supply of light water medical
attendance or other amenity or of any service excluded from the computation of wages by a
general or special order of the State Government; 

(3) any contribution paid by the employer to any pension or provident fund and the interest
which may have accrued thereon; 

(4) any travelling allowance or the value of any travelling concession; 

(5) any sum paid to the employed person to defray special expenses entailed on him by the
nature of his employment; or 

(6) any gratuity payable on the termination of employment in cases other than those
specified in sub-clause (d).
P.G Department of Social Work,M.S.C.A.S 22
LABOUR LAWS
.%
8
fi
G
v
y
f
N
F
r
3
d
lx
7
0
5
%t
u
a
w
h
S
b
e
c
ti
g
n
s
o
p
im P.G Department of Social Work,M.S.C.A.S 23

Maximum deductions that can be made from salary:-

LABOUR LAWS