Training Module

On
Labour Laws

Various Acts
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10.
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15.
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17.
18.

The Factories Act

The Contract Labour (R&A) Act
The Payment of Wages Act
The Minimum Wages Act
The Payment of Bonus Act
The Employment Exchanges Act
The Provident Fund Act
The Profession Tax Act
The Workmens Compensation Act
The Maternity Benefit Act
The Industrial Employment (Standing Orders) Act
The Bombay Labour Welfare Fund Act
The Payment of Gratuity Act
The Bombay Shops and Establishment Act
The Industrial Disputes Act
The Water (Prevention & Control of Pollution) Act
The Maharashtra Recognition of Trade Union (MRTU) and
Prevention of Unfair Labour Practices (PULP) Act
The Employees State Insurance Act

Applicability of Acts
The Factories Act
Applicability :
Any premises including precincts thereof where ten or more workers are
working or were working on any day of preceding twelve months and in any
part of which a manufacturing process is being carried on with the aid of
power,
where twenty or more workers are working or were working on any day of
preceding twelve months and in any part of which a manufacturing process is
being carried on without the aid of power.
Scope :
An Act to consolidate and amend the law regulating labour in factories
Comments :
This Act covers basic rules and regulations for starting of a new factory
and maintaining it consistently under the conditions prescribed in the Act
for safety and health and welfare of the employees.

Applicability of Acts
The Payment of Wages Act
Applicability :
Every Factory
Scope :
An Act to regulate the payment of wages to certain classes
of employed persons.
Comments :
This Act covers various rules regarding payment of wages
like date of payment, place of payment, mode of payment,
verification by principle employer and records thereof. It
also describes eligible deduction from wages and related
procedures.

Object of the Act

To regulate the payment of wages of certain classes of employed persons.

Applicability of Act
Factory industrial Establishment
Tramway service or motor transport service engaged in carrying
passengers or good or both by road for hire or reward.
Air transport service Dock, Wharf or Jetty
Inland vessel, mechanically propelled
Mine, quarry or oil-field Plantation
Workshop or other establishment etc.
Coverage of Employees

Drawing average wage upto Rs.10,000/- pm

Time of payment of wages

The wages of every person employed be paid.
When less than 1000 persons are employed shall be paid before the expiry
of the 7th day of the following month.
When more than 1000 workers, before the expiry of the 10 th day of the
following month.

Wages to be paid in current coins or currency notes

All wages shall be paid in current coins or currency notes or in both.
After obtaining the authorization, either by cheque or by crediting the
wages in employees bank Account.

Deduction for absence from duties for unauthorised absence

Absence for whole or any part of the day
If ten or more persons absent without reasonable cause, deduction of
wages upto 8 days.

Deduction made from wages

Deductions such as, fine, deduction for amenities and services supplied by
the employer, advances paid, over payment of wages, loan, granted for
house-building or other purposes, income tax payable, in pursuance of the
order of the Court, PF contributions, cooperative societies, premium for
Life Insurance, contribution to any fund constituted by employer or a trade
union, recovery of losses, ESI contributions
Deduction for damage or loss
For default or negligence of an employee resulting into loss. Show cause
notice has to be given to the employee.
Deductions for service rendered
When accommodation amenity or service has been accepted by the
employee.

Applicability of Acts
The Minimum Wages Act
Applicability :
Every Factory
Scope :
An Act to provide for fixing minimum rates of wages in
certain employments.
Comments :
This Act covers rules & regulations regarding minimum
wages applicable to nature of industry which is decided
based on process carried out. It also covers the index for
Dearness Allowance and HRA rules.

 Object of the Act

To provide for fixing minimum rates of wages in certain employments
What is Minimum Rates of Wages ?
Such as Basic rates of wages etc. Variable DA and Value of other
concessions etc.
Payment of Minimum Rates of Wages
Employer to pay to every employee engaged in schedule employment at a
rate not less than minimum rates of wages as fixed by Notification by not
making deduction other than prescribed
Wages must be paid in cash
Fixing Hours for Normal Working
Number of hours of work in a day should not exceed nine hours in a day
for an Adult & 4-1/2, hours for a child
Shall constitute a normal working day inclusive of one or more specified
intervals.
To provide for a day of rest in every period of seven days with
remuneration.
To provide for payment for work on a day of rest at a rate not less than
double the Normal rate

 Overtime
To be fixed by the hour, by the day or by such a longer wage-period works
on any day in excess of the number of hours constituting normal working
day.
Payment for every hour or for part of an hour so worked in excess at the
overtime rate double of the ordinary rate of wages
Distribution of wages
The employer shall pay wages on a working day within seven days of the
end of wage period or within Ten days if more than 1000 employees are
employed in establishment
Every employer shall issue wage slip in prescribed form
Maintenance of registers and records
Register of Fines Form I Rule 21(4)
Annual Returns Form III Rule 21 (4-A)
Register for Overtime Form IV Rule 25
Register of WagesForm X,
Wages slipForm XI,
Muster RollForm V Rule 26
Representation of register for three year Rule 26-A

Exhibition of Act
The employer shall exhibit a notice in respect of the following in English
& in local language in a Clean & legible form
Minimum Rate of Wages
Abstract of the act and rules made there under
Name & address of the inspector
PENALITIES
Offence
Punishment
For paying less than minimum
rates of wages

Imprisonment upto 6 months or

with fine upto Rs.500/-

For contravention of any

provisions pertaining to fixing
hours for normal working day
etc.

Imprisonment upto 6 months or

with fine upto Rs.500/-

Applicability of Acts
The Contract Labour (Regulation & Abolition) Act
Applicability :
Every establishment in which twenty or more workmen are
employed or were employed on any day of the preceding twelve
months as contract labour through contractor for the work to be
carried out which is not directly connected to manufacturing activities,
to every contractor who employs or who employed on any day of
the preceding twelve months twenty or more workmen.
Scope :
An Act to regulate the employment of contract labour in certain
establishments and to provide for its abolition in certain
circumstances and for matters connected therewith.
Comments :
The principle employer and the contractor should obtain a
permission by applying for registration to The Competent
Authority.

Object of the Act

To regulate the employment of contract labour in certain establishments
and to provide for its abolition in certain circumstances and for matters
connected therewith.

Applicability
Every establishment in which 20 or more workmen are employed or were
employed on any day of the preceding 12 months as contract labour.
Every contractor who employs or who employed on any day of the
preceding twelve months 20 or more workmen

Registration of Establishment
Principal employer employing 20 or more workers through the contractor
or the contractor(s) on deposit of required fee in Form 1

Prohibition of Employment of Contract Labour

Only by the appropriate Government through issue of notification after
consultation with the Board (and not Courts) can order the prohibition of
employment of contract labour.

Welfare measures to be taken by the Contractor

Contract labour either one hundred or more employed by a contractor for
one or more canteens shall be provided and maintained.
First Aid facilities.
Number of rest-rooms as required under the Act.
Drinking water, latrines and washing facilities.

Liability of Principal Employer

To ensure provision for canteen, restrooms, sufficient supply of drinking
water, latrines and urinals, washing facilities.
Principal employer entitled to recover from the contractor for providing
such amenities or to make deductions from amount payable.

 Registers of Contractors
Principal employer
To maintain a register of contractor in respect of every establishment in
Form XII.
Contractor
To maintain register of workers for each registered establishment in Form
XIII.
To issue an employment card to each worker in Form XIV.
To issue service certificate to every workman on his termination in Form
XV.
Register or wage-cum-Muster Roll in Form XVII where the wage period is
a fortnight or less.
Maintain a Register of Overtime in Form XXIII.
Obtain the signature or thumb impression of the worker concerned against
the entries relating to him on the Register of wages or Muster Roll-CumWages Register.

Applicability of Acts
The Payment of Bonus Act
Applicability :

year.

Every factory & every other establishment in which twenty or

more persons are employed on any day during an accounting

Scope :
An Act to provide for the payment of bonus to persons
employed in certain establishments on the basis of profits or on the
basis of
production or productivity and for matters connected
therewith.
Comments :
Every factory or establishment completed 5 years or the year in
which it earns profits whichever is earlier, this Act is
applicable then onwards.
Registers to be maintained and
Returns to be submitted on applicability of this Act.

Applicability of Act
Every factory where in 10 or more persons are employed with the aid of
power or
An establishment in which 20 or more persons are employed without the
aid of power on any day during an accounting year
Eligibility of Bonus
An employee will be entitled only when he has worked for 30 working
days in that year
Employees drawing wages up to Rs.10000 per month or less.
For calculation purposes Rs.3500 per month maximum will be taken even
if an employee is drawing upto Rs.10000 per month.Sec.12
Note: The proposal to enhance the existing ceiling of Rs.3500 is under
active consideration by the Govt.

 Payment of Minimum Bonus

8.33% of the salary or Rs.100 (on completion of 5 years after 1 st
Accounting year even if there is no profit)
Components of Bonus
Salary or wages includes dearness allowance but no other allowances e.g.
over-time, house rent, incentive or commission.
Time Limit for Payment of Bonus
Within 8 months from the close of accounting year.
Maintenance of Registers and Records etc.
A register showing the computation of the allocable surplus referred to in
clause (4) of section 2, in form A.
A register showing the set-on and set-off of the allocable surplus, under
section 15, in form B
A register showing the details of the amount of bonus due to each of the
employees, the deductions under section 17 and 18 and the amount actually
disbursed, in form C.
Submission of Return
In form D to the inspector within 30 Days of the expiry of Eight months
from closing of the accounting year

Disqualification & Deduction of Bonus

On dismissal of an employee for
Fraud; or riotous or violent behaviour while on the premises of the
establishment; or theft, misappropriation or sabotage of any property of the
establishment or Misconduct of causing financial loss to the Employer to
the extent that bonus can be deducted for that year

Applicability of Acts
The Employment Exchanges (Compulsory
Notification of Vacancies) Act
Applicability :
Every establishment employing twenty five or more persons.
Scope :
An Act to provide for compulsory notification of vacancies to
Employment Exchanges.
Comments :
Needs to comply by notifying vacancies every quarter and to
submit the returns quarterly as well as biannually.

Applicability of Acts
The Provident Fund Act
Applicability :
I

Every establishment which is a factory specified in Schedule

and where twenty or more persons are employed.

Scope :
An Act to provide for the institution of Provident Funds for
employees in factories and other establishments
Comments :
Registration under the Act is mandatory for all. Principle
employer is responsible for deductions and remittance of PF
contributions under this Act even for contract employees also. Monthly,
yearly returns are required to be submitted in the
prescribed format.

Applicability
Every establishment which is factory engaged in any industry specified in
Schedule 1 and in which 20 or more persons are employed.
Any other establishment employing 20 or more persons which Central
Government may, by notification, specify in this behalf.
Any establishment employing even less than 20 persons can be covered
voluntarily u/s 1(4) of the Act.
Eligibility
Any person who is employed for work of an establishment or employed
through contractor in or in connection with the work of an establishment.
Excluded
employee
Excluded
Employee:
"Exclude Employee" as defined under pare 2(f) of the Employees' Provident
Fund Scheme means an employee who having been a member of the fund has
withdraw the full amount of accumulation in the fund on retirement from
service after attaining the age of 55 years; Or An employee, whose pay
exceeds Rs. Six Thousand five hundred per month at the time, otherwise
entitled to become a member of the fund.

Benefits
Employees covered enjoy a benefit of Social Security in the form of an un
attachable and un withdrawable (except in severely restricted
circumstances like buying house, marriage/education, etc.) financial nest
egg to which employees and employers contribute equally throughout the
covered persons employment.
This sum is payable normally on retirement or death. Other Benefits
include Employees Pension Scheme and Employees Deposit Linked
Insurance Scheme.
Payment of Contribution
The employer shall pay the contribution payable to the EPF, DLI and
Employees Pension Fund in respect of the member of the Employees
Pension Fund employed by him directly by or through a contractor.
It shall be the responsibility of the principal employer to pay the
contributions payable to the EPF, DLI and Employees Pension Fund by
himself in respect of the employees directly employed by him and also in
respect of the employees directly employed by him and also in respect of
the employees employed by or through a contractor.

Rates of Contribution

SCHEME

EMPLOYEES

EMPLOYERS

12%

Amount > 8.33% (in case where

contribution is 12% of 10%)

NIL

Insurance Scheme

NIL

0.5

NIL

Pension Scheme

NIL

8.33% (Diverted out of Provident

Fund

Provident
Scheme

Fund

CENTRAL
GOVTS

1.16%

Clarification about Contribution

After revision in wage ceiling from Rs.5000 to Rs.6500 w.e.f. 1.6.2001 per
month, the government will continue to contribute 1.16% upto the actual
wage of maximum Rs.6500 per month towards Employees Pension Scheme.
The employers share in the Pension Scheme will be Rs.541 w.e.f. 1.6.2001.
Under Employees Deposit-Linked Insurance Scheme the contribution @
0.50% is required to be paid upto a maximum limit of Rs.6500.

 The employer also will pay administrative charges @ 0.01% on maximum

limit of Rs.6500 whereas an exempted establishment will pay inspection
charges @ 0.005% on the total wages paid.
Since an excluded employee i.e. drawing wages more than Rs.6500 can
also become member of the Fund and the Schemes on joint request and if,
for instance, such an employee is getting Rs.10,000 per month, his share
towards provident fund contribution will be Rs.1200 e.g. 12% and
employers share towards provident fund contributioin will be Rs.659 and
Rs.541 towards Employees Pension Fund.
Last date of submitting the contribution
contribution shall be submitted in prescribed form within 15 days of wage
period
Damages if contribution not submitted in time
Less than 2 months
.@ 17% per annum
Two months and above but less than upto four months .@ 22% per annum
Four months and above but less than upto six months .@ 27% per annum
Six months and above
..@ 37% per annum

Penal Provision
Liable to be arrested without warrant being a cognisable offence.
Defaults by employer in paying contributions or inspection/administrative
charges attract imprisonment upto 3 years and fines upto Rs.10,000 (S.14).
For any retrospective application, all dues have to be paid by employer
with damages upto 100% of arrears.

Returns submitted under Act

Monthly Return
P.F Challan, Form 5( New Joining), Form 10,(Left employees), Form
-02(Nomination & declaration of new joiner),SSN form.
Annual return
From 03A(Monthly contribution details employee wise)
Form 06A(Summary of form 03A)
Maintenance of registers and records
Inspection register in prescribed format
Contribution card of employees(Form 03A)

Applicability of Acts
The Profession Tax Act
Applicability :
Every Factory / Establishment
Comments :
Registration under the Act is mandatory for all. Principle employer
is responsible for deductions and remittance of Profession Tax
under this Act even for contract employees also. Monthly, yearly
returns are required to be submitted in the prescribed format.

Applicability of Acts
The Workmens Compensation Act
Applicability :
Every Factory
Scope :
An Act to provide for the payment by certain classes of employers
to their workmen of compensation for injury by accident.
Comments :
The Act speaks about the compensation payable in case of
disablement due to occupational hazards. ESI can be substituted by
having insurance policy under the Act to take care of compensation
payable, if any.

Applicability of Acts
The Maternity Benefit Act
Applicability :
Every shop & establishment in which ten or more persons are
employed on any day of the preceding twelve months or
where Employees State Insurance Act is applicable for the time
being.
Scope :
An Act to regulate employment of women in certain
establishments for certain period before and after child-birth and to
provide for maternity benefits and certain other benefits.
Comments :
This act describes maternity benefits to the working women in
certain establishments.

Object of the Act

To protect the dignity of motherhood and the dignity of a new persons
birth by providing for the full and healthy maintenance of the woman
and her child at this important time when she is not working.
Coverage of the Act
Upon all women employees either employed directly or through
contractor except domestic women employees employed in mines,
factories, plantations and also in other establishments if the State
Government so decides. Therefore, if the State Government decides to
apply this Act to women employees in shops and commercial
establishments, they also will get the benefit of this Act. Bihar, Punjab
Haryana, West Bengal, U.P., Orissa and Andhra have done so.

Benefits

Cash Benefits
Leave with average pay for six weeks before the delivery.
Leave with average pay for six weeks after the delivery.
A medical bonus of Rs.25 if the employer does not provide free medical care to
the woman.
An additional leave with pay up to one month if the woman shows proof of
illness due to the pregnancy, delivery, miscarriage, or premature birth.
In case of miscarriage, six weeks leave with average pay from the date of
miscarriage.
Non Cash Benefits/Privilege
Light work for ten weeks (six weeks plus one month) before the date of her
expected delivery, if she asks for it.
Two nursing breaks in the course of her daily work until the child is 15 months
old.
No discharge or dismissal while she is on maternity leave.
No change to her disadvantage in any of the conditions of her employment
while on maternity leave.
Pregnant women discharged or dismissed may still claim maternity benefit
from the employer.

Leave for Miscarriage& Tubectomy Operation

Leave with wages at the rate of maternity benefit, for a period of six weeks
immediately following the day of her miscarriage or her medical termination of
pregnancy.
Entitled to leave with wages at the rate of maternity benefit for a period of two
weeks immediately following the day of her tubectomy operation.
Leave for illness arising out of pregnancy etc.
A woman suffering from illness arising our of pregnancy, delivery, premature
birth of child (Miscarriage, medical termination of pregnancy or tubectomy
operation) be entitled, in addition to the period of absence allowed to her leave
with wages at the rate of maternity benefit for a maximum period of one month
Prohibition of dismissal during absence of pregnancy
Discharge or dismissal of a woman employed during or on account of such
absence or to give notice or discharge or dismissal on such a day that the notice
will expire during such absence or to very her disadvantage.
Discharge or dismissal during or on account of such absence or to give notice
of discharge or dismissal on such a day that the notice will expire during such
absence, or to vary to her disadvantage any of the conditions of her service.

At the time during her pregnancy, if the woman but for such discharge or
dismissal would have been entitled to maternity benefit or medical bonus,
etc.
Not barred in case of dismissal for cross misconduct.
Conditions for eligibility of benefits
Women indulging temporary of unmarried are eligible for maternity
benefit when she is expecting a child and has worked for her employer for
at least 80 days in the 12 months immediately proceeding the date of her
expected delivery
Conditions for Claiming benefits
Ten weeks before the date of her expected delivery, she may ask the
employer to give her light work for a month. At that time she should
produce a certificate that she is pregnant.
She should give written notice to the employer about seven weeks before
the date of her delivery that she will be absent for six weeks before and
after her delivery. She should also name the person to whom payment will
be made in case she can not take it herself.

She should take the payment for the first six weeks before she goes on
leave. She will get payment for the six weeks after child-birth within 48
hours of giving proof that she has had a child.
She will be entitled to two nursing breaks of fifteen minutes each in the
course of her daily work till her child is fifteen months old.
Her employer cannot discharge her or change her conditions of service
while she is on maternity leave.

Forfeiture of maternity benefit

If permitted by her employer to absent herself under the provisions of
section 6 for any period during such authorized absence, she shall forfeit
her claim to the maternity benefit for such period.
For discharging or dismissing such a woman during or on account of her
absence from work, the employer shall be punishable with imprisonment
which shall not be less than 3 months, but it will extend to one year and
will find, but not exceeding Rs.5,000.

Applicability of Acts
The Industrial Employment (Standing Orders) Act
Applicability :
Every industrial establishment wherein fifty or more workmen are
employed on any day of preceding twelve months.
Scope :
An Act to provide for defining with sufficient precision certain
conditions of employment in industrial establishments.
Comments :
This Act regulates basic terms and conditions of employment. The
employer can get its rules and regulations certified from the
competent authority or The Model Standing Orders described in
the
Act gets applied to the establishment.

Applicability of Acts
The Bombay Labour Welfare Fund Act
Applicability :
Applies to every factory within the meaning of Factories Act,
1948, every establishment within the meaning of Shop &
Establishment Act, 1948, branches / Depts. situated in the same
premises or different places thereof.
Scope :
An Act to provide Constitution of a fund for the financing of
activities to promote welfare of labour in the state of Maharashtra
Comments :
The employer has to deduct the amount specified every six month
from the eligible employees salary / wages and remit the same to
the Welfare Fund. The amount collected is used for the welfare of
labours by various means.

Applicability of Acts
The Payment of Gratuity Act
Applicability :
Every factory,
every shop & establishment in which ten or more persons are
employed, or were employed on any day of the preceding twelve
months.
Scope :
An Act to provide for a scheme for the payment of gratuity to
employees engaged in factories, mines, oilfields, plantations, ports,
railway
companies, shops and other establishments and for matters
connected
therewith or incidental thereto.
Comments :
Every employee who has completed his 4 years and 240 days
uninterrupted continuous service is eligible to get benefits under
this Act.
While calculating the refund to the employee the basic
pay is to be
divided by 26 days and the employee gets 15 days of basic pay for every
completed year.

 Applicability
Every factory, mine, oil field, plantation, port, railways, company, shop,
establishment or educational institutions employing 10 or more employees
Employee
All employees irrespective of status or salary
Entitlement On completion of five years service except in case of death
or disablement
Qualifying period
On rendering of 5 years service, either termination, resignation or
retirement.
Wages for Calculation
@ 15 days wages for every completed year as if the month comprises of
26 days at the last drawn wages

Display of Notice
On conspicuous place at the main entrance in English language or the
language understood by majority of employees of the factory, etc.
Forfeiture of Gratuity
On termination of an employee for moral turpitude or riotous or disorderly
behavior.
Wholly or partially for willfully causing loss, destruction of property etc.
Nomination
To be obtained by employer after expiry of one years service, in Form F
Maximum Ceiling
Rs.3,50,000
Penalties
Imprisonment for 6 months or fine upto Rs.10,000 for avoiding to make
payment by making false state-ment or representa -tion.
Imprisonment not less than 3 months and upto one year with fine on
default in comply-ing with the provisions of Act or Rules.

Applicability of Acts
The Bombay Shops and Establishment Act
Applicability :
Every Shop and Establishment which is not a Factory under The
Factories Act.
Scope :
An Act to consolidate and amend the law relating to the
regulation of conditions of work and employment in shops,
commercial establishments, residential hotels, restaurants, eating
houses, theatres and other places, public amusement or
entertainment and other establishments.
Comments :
This Act covers every shop and establishments which is not a
factory and regulates the conditions of employment. The
employer
has to obtain a license from the authority under the Act
and renew
it regularly before the expiry.

Applicability of Acts
The Industrial Disputes Act
Applicability :
Every factory
Scope :
An Act to make provisions for the investigation and settlement
of industrial disputes and for certain other purpose
Comments :
The act describes the meaning, legality and rules regarding
Strike, Lock-out, Lay-off and Retrenchment. It also describes the
procedure of making complaints to the competent authority
and the
settlement thereof.

Applicability of Acts
The Water (Prevention & Control of Pollution) Act
Applicability :
Every factory
Scope :
An Act to provide for prevention and control of water pollution and
the maintaining or restoring of wholesomeness of water, for the
establishment, with a view to carrying out of the purposes aforesaid, of
Boards for the prevention and Control of Water Pollution, for
conferring on and assigning to such Boards powers and functions
relating thereto and for matters connected therewith.
Comments :
This act covers all rules and regulations related to prevention of Water
and Air pollution and control thereto. Every employer has to obtain a
license to establish / operate from the MPCM Board.

Applicability of Acts
The Employees State Insurance Act
Applicability :
Every factory & establishment
(for employees drawing wages less than Rs. 7,500/-)
Scope :
An Act to provide for certain benefits to employees in case of
sickness, maternity and employment injury and to make provision for
certain other matters in relation thereto.
Comments :
This act covers all rules and regulations related to employee safety &
health issues.

Applicability of the Act & Scheme

Is extended in area-wise to factories using power and employing 10 or
more persons and to non-power using manufacturing units and establishments employing 20 or more person upto Rs.10,000/- per month. It has
also been extended upon shops, hotels, restaurants, roads motor transport
undertakings, equipment maintenance staff in the hospitals.

Coverage of employees
Drawing wages upto Rs.10000/- per month engaged either directly or thru
contractor

Benefits
Medical, sickness, extended sickness for certain diseases, enhanced
sickness, dependents maternity, besides funeral expenses, rehabilitation
allowance, medical benefit to insured person and his or her spouse
Rate of Contribution of the wages
Employers 4.75%
Employees 1.75%
Contribution period
1st April to 30th September.
1st October to 31st March
Benefit period
If the person joined insurance employment for the first time, say on 5 th
January, his first contribution period will be from 5 th January to 31st March
and his corresponding first benefit will be from 5 th October to 31st
December.

WAGES FOR ESI CONTRIBUTIONS

To be deemed as wages
Basic pay, Dearness allowance , House rent allowance ,City compensatory
allowance, Overtime wages, Payment for day of rest, Production incentive
Bonus other than statutory bonus, Night shift allowance Heat, Gas & Dust
allowance, Payment for un substituted holidays Meal/food allowance
Suspension allowance, Lay off compensation Children education
allowance
NOT to be deemed as wages
Contribution paid by the employer to any pension/provident fund or under
ESI Act. Sum paid to defray special expenses entailed by the nature of
employment Daily allowance paid for the period spent on tour. Gratuity
payable on discharge . Pay in lieu of notice of retrenchment compensation ,
Benefits paid under the ESI Scheme , Encashment of leave , Payment of
Inam which does not form part of the terms of employment, washing
allowance for livery , Conveyance Amount towards reimbursement for
duty related journey

Manner and Time Limit for making Payment of contribution

The total amount of contribution (employees share and employers share)
is to be deposited with the authorised bank through a challan in the
prescribed form in quadruplicate on ore before 21 st of month following the
calendar month in which the wages fall due.
Maintenance of registers and records
Regulation 32 ( Register of employees covered under scheme & their
contribution details)
Penalties
Different punishment have been prescribed for different types of offences
in terms of Section 85: (I) (six months imprisonment and fine Rs.5000), (ii)
(one year imprisonment and fine), and 85-A: (five years imprisonment and
not less to 2 years) and 85-C(2) of the ESI Act, which are self explanatory.
Besides these provisions, action also can be taken under section 406 of the
IPC in cases where an employer deducts contributions from the wages of
his employees but does not pay the same to the corporation which amounts
to criminal breach of trust.

The Factories Act

Returns / Registers

Form
No.

When to comply

Approval of Plans

Before situationg a factory or

construction or extension of it

Certificate of Stability

1-A

Once every 5 years

Application for Registration

After commencement of Factory

Grant and renewal of License

Starting and renewal on or before 31st

Oct., every year

Notice of Change of Manager

As and when Factory Manager changes

Record of white washing, varnishing, painting, etc.

& repainting, re-varnishing

To be maintained always

Register of workers attending to machinery

10

To be maintained always

Report of examination of lifting machinery /

ropes / tackles by competent person

12

Certificate to be obtained annually

Examination of pressure plant by competent person 13

Every Six Months
Once in Twelve months
Once in four years

Externally
Internally
Hydraulic Test
Register of Compensatory Holidays

14

To be maintained always

The Factories Act ( contd.. )

Returns / Registers

Form
No.

When to comply

Notice of period of work for adults

16

To display and maintain

Register of adult workers

17

To be maintained always

Leave with wages register

20

To be maintained always

Leave Book

21

To be maintained always

Report of accident by the Manager

24

To be submitted to Factory Inspection

office as and when accident takes place

Notice of Dangerous Occurrence

24A

Within 12 hours of taking place of such

accident

Abstract under the Act

26

To be displayed always

Annual Return

27

To be submitted to Factory Inspection

office on or before 1st Feb. every year

Muster Roll

29

To be maintained if Form 17 & 19 are

not maintained

Register of accidents & dangerous occurrences

30

To be maintained always

Inspection Book

31

To be maintained always

Notification of Paid Holidays

To display and to submit to Factory

Inspection Office every year in January

The Contract Labour (Regulation & Abolition) Act

Returns / Registers

Form
No.

When to comply

Application for registration of establishments

Every year before 31st December

Certificate of Registration

II

To preserve

Application for license

IV

To be made by contractor

Certificate from Principle Employer

Required for submission of application

for license

Renewal of License

VI

To be made by contractor every year

before 31st October

Register of contractor

VII

To be maintained by Principle Employer

Register of persons employed

IX

To be maintained by the contractor

Muster Roll

XII

To be maintained by the contractor

Register of Wages

XIII

To be maintained by the contractor

Annual Return

XXI

By 15th February every year

The Payment of Wages Act

Returns / Registers

Form
No.

Abstract under the Act

When to comply
To display always

Register of Wages

II

To maintain always

Register of deductions for damage or loss

III

To maintain always

Notice of dates of payment

To display always

Register of advances

IV

To maintain always

Annual Return

To submit before 15th February every

year

Display of rates of Wages

To display always

Inspection Book

To maintain always

All registers and records to be preserved for a period of THREE years.

The Minimum Wages Act

Returns / Registers

Form
No.

When to comply

Muster Roll cum Wage register

II

To maintain always

(Unless registers in Form 17 & 19 appended to

Maharashtra Factories Rules, 1963 & a register in
Form II appended to the Maharashtra Payment of
wages Rules, 1963 are maintained.)

Inspection Book

To maintain always

Abstract

To display always

Annual Return

To submit every year before 15th

February

Attendance cum Wage slip or Wage Card

To maintain always

All registers and records to be preserved for a period of THREE years.

The Payment of Bonus Act

Returns / Registers

Form
No.

When to comply

Allocable Surplus register

To maintain

Set on and Set Off Register

To maintain

Payment of Bonus register

To maintain

Annual Return

To submit every year before 30 days

from the date of payment of bonus

Inspection Book

To maintain

Unclaimed Bonus register

To maintain

The Employment Exchanges (Compulsory

Notification of Vacancies)Act
Returns / Registers

Form
No.

Notification of Vacancies
Local Employment Exchange
Central Employment Exchange

When to comply

15 days before interview / test

60 days before interview / test

Quarterly Return

ER-I

Within 30 days from the completion of

quarter.

Biannual Return (Occupational Return)

ER-II

Once in a two years on a date to be

specified in the official Gazette

The Provident Fund Act

Returns / Registers

Form
No.

When to comply

Declaration and Nomination

On becoming the member of EPF

scheme

Contribution Card

3-A

Yearly submission before 30th April

Return of employee qualifying to become member

of the fund for the first time

To submit before 15th of every month

Return of Ownership to be sent to the Regional

State Commissioner

5-A

Once

Consolidated annual contribution statement

6-A

Yearly submission before 30th April

Cancellation / Change of Nomination

As and when there is change in the

nomination of the employee

Return of members leaving service

10

To submit before 15th of every month

Statement of contribution for the month

12-A

To submit before 25th of every month

Transfer of EPF account

13

As and when employee joins other

company

Application of withdrawal of EPF

19

On leaving of service of a member

Challan (No.s 1, 2, 10, 21, 22)

To submit before 15th of every month

Inspection Book

To maintain always

The Workmens Compensation Act

Returns / Registers

Form
No.

When to comply

Statement of depositing compensation

At the time of depositing the

compensation in respect to death

Application by dependants for deposit of

compensation

To be made by dependents

Repot of fatal accidents

EE

At the time of occurrence of fatal

accident

The Maternity Benefit Act

Returns / Registers

Form
No.

To display always

Abstract

Annual Return

When to comply

11

To submit before 15th January every year

The Industrial Employment (Standing Orders) Act

Returns / Registers

Form
No.

When to comply

Register of Standing Orders or Model Standing Orders

To maintain always

Submission of draft amendments

As and when required

Notice of discontinuance / restart of a shift

IV-A

As and when required

The Bombay Labour Welfare Fund Act

Returns / Registers

Form
No.

When to comply

Register of Wages

To maintain always

Consolidated register of unclaimed Wages & Fines

To maintain always

Statement of Employees and Employers

contribution

A-1

Half yearly by 15th July and 15th January

(Unless registers in Form 17 & 19 appended to

Maharashtra Factories Rules, 1963 & a register in
Form II appended to the Maharashtra Payment of
wages Rules, 1963 are maintained.)

Abstract under the Act

To display always

The Payment of Gratuity Act

Returns / Registers

Form
No.

When to comply

Notice of opening of the Establishment

Within 30 days of rules becoming

applicable

Notice of change in Name, Address, Employer,

Nature of Business

Within 30 days of any such change

Notice of closure

Atleast 60 days before the intended

closure

Display of Notice specifying the name and

designation of authorised officer to receive the
notices

To display always

Notification of family in relation to an employee

As and when required

Nominations

Within 30 days of completion of 1 year

of service

Notice of payment of gratuity

Within 15 days of the receipt of the

application

Abstract under the Act

To display always

Compulsory Insurance

To obtain an insurance for the liability

for payment towards the gratuity

The Bombay Shops & Establishments Act

Returns / Registers

Form
No.

When to comply

Application for registration

Within 30 days from the date of

commencement

Application for renewal of registration

15 days before the expiry of registration

Registration Certificate

To display always

Notice of change in respect of change on no. of

employees

Within 15 days after the expiry of the

quarter

Notice of change in respect of any other change

Within 30 days after the change has

taken place.

Register of recording lime washing, color washing

To maintain always

Register of employment

H/J

To maintain always

Register of leave

M, N

To maintain always

Name of board in Marathi

Ascertainment of age of employee

To display always
O

To get from registered medical

practitioner

Inspectors Visit Book

To maintain always

List of Weekly offs and Paid Holidays

To display

The Industrial Disputes Act

This act covers the provisions related to Change in the service
condition of any workman, Strike, Lock-out, Lay-off,
Retrenchment
Returns / Registers

Form
No.

When to comply

Notice of change in the conditions of service

XIII

Before intending to effect any change in

the conditions of service applicable to
any workman.

The Water (Prevention & Control of Pollution) Act

Returns / Registers

Form
No.

When to comply

Application for consent to establish

XIII

Before establishing or taking any steps

for establishment of industry / operation /
process / or any treatment / disposal
system for discharge, continuation of
discharge.

Renewal of consent to establish / operate

Return under Cess Rules showing the quantity of
water consumed in the previous month

Before ending the period of the existing

consent
1

On or before 5th of every month

The Employees State Insurance Act

Returns / Registers

Form
No.

When to comply

Registration of factories / establishments

01

Before 15 days of applicability of the Act

Declaration form

To get filled up from all employees on the date of

joining

Declaration form to be sent to appropriate

office

Within 10 days from the date of filling up of form

Registration of families

1A

Within 10 days from the date of filling up of form

Change in family declaration

1B

To be filled in by employee and employer to

forward it within 10 days

Return of contributions to be send in

triplicate

Within 42 days of the termination of the

contribution period to which it relates

Challans of contributions

Monthly to submit in Bank

Register of employees

To maintain

Accident Book

15

To maintain

Accident Report

16

Immediately, if accident is serious or within 24

hours

Inspection Book

To maintain

List of acts and commissions which amounts to

misconduct
(a) Willful insubordination or disobedience, whether or not in combination with
another, of any lawful and reasonable order of a superior.
(b) Going on illegal strike or abetting, inciting, instigating or acting in furtherance
thereof;
(c) Willful slowing down in performance of work, or abetment or instigation thereof;
(d) Theft, fraud or dishonesty in connection with the employers business or property
or the theft or property of another workman within the premises of the
establishment;
(e) Taking or giving bribes or any illegal gratification;
(f) Habitual absence without leave, or absence without leave for more than ten
consecutive days or overstaying the sanctioned leave without sufficient grounds
or proper or satisfactory explanation;
(g) Late attendance on not less than four occasions within a month;
(h) Habitual breach of any Standing Order or any law applicable to the establishment
or ant rules made there under;
(i) Collection without the permission of the Manager of any money within the
premises of the establishment except as sanctioned by any law for the time being
in force;

List of acts and commissions which amounts to

misconduct
(j) Engaging in trade within the premises of the establishment;
(k) drunkenness, riotous, disorderly or indecent behaviour on the premises of the
establishment;
(l) Commission of any act subversive of discipline or good behaviour on the
premises of the establishment;
(m) Habitual neglect of work, or gross or habitual negligence;
(n) Habitual breach of ant rules or instruction for the maintenance and running of any
department, or the maintenance of the cleanliness of any portion of the
establishment;
(o) Habitual commission of any act or commission for which a fine may be imposed
under the Payment of Wages Act, 1936.
(p) Canvassing for union membership, or the collection of union dues within the
premises of the establishment except in accordance with any law or with the
permission of the Manager
(q) Wilful damage to work in process r to any property of the establishment;
(r) holding meeting inside the premises of the establishment without the previous
permission of the Manager or except in accordance with the provisions of any la
for the time being in force;

List of acts and commissions which amounts to

misconduct
(s) Disclosing to any unauthorised person any information in regard to the processes
of the establishment which may come into the possession of the workman in the
course of his work;
(t) Gambling within the premises of the establishment;
(u) Smoking or spitting on the premises of the establishment where it is prohibited by
the employer;
(v) Failure to observe safety instructions notified b the employer or interference with
any safety device or equipment installed within the establishment;
(w) Distributing or exhibiting within the premises of the establishment hand-bills,
pamphlets, posters, and such other things or causing to be displayed by means of
signs or writing or other visible representation on any matter without previous
sanction of the Manager;
(x) Refusal to accept a charge-sheet, order or other communication served I
accordance with these Standing Orders;
(y) Unauthorised possession of any lethal weapon in the establishment.