Professional Documents
Culture Documents
T. Siva Kumar
Compiled from:
Elements of Mercantile Law by N.D.Kapoor (2007),
http://labour.nic.in/act/welcome.html
Various postings in www.citehr.com
Law
What is law?
Law includes all the rules & principles which regulate our
Object of law?
To establish socio-economic justice and remove the
Mercantile/Business/Commerci
al Law
What is it mean?
It deals with contractual situations and the right &
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9.
Workmens Compensation
Act, 1923
First step towards social security of workmen
The theory behind this act is that the cost of product
Note: Workmen who are covered under ESI Act, 1948 are not
Disablement?
Disablement means loss of capacity to work or to
move
It may result in loss or reduction of his/her earning
capacity.
Disablement may be
Partial
Total
Further it may be
Permanent
Temporary
Occupational Disease
Compensation
for
Calculation
Minimum
amount
Death
Rs. 80,000
Permanent total
disablement
Rs. 90,000
Permanent partial
disablement
Temporary
disablement (total &
partial)
Note: Where the monthly wages of workman exceed Rs. 4000, his monthly
wages shall be deemed to be Rs.4000 only.
Object?
To regulate the conditions governing the
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month (2005) or such other higher sum which, on the basis of figures of the
Consumer Expenditure Survey published by the National Sample Survey
Organisation, the Central Government may, after every five years, by notification
in the Official Gazette.
period)
Absence of duty
Services like house accommodation, amenities etc
Recovery of advances
Recovery of loans
Payments to co-operative societies & insurance schemes
Other deductions such as income tax, PMs Relief fund etc
Important Terms
Lay off Failure/Refusal/Inability of an employer to give
Conciliation Machinery
Work committees
Conciliation Officer
Board of Conciliation
Courts of Inquiry
Adjudication Machinery
Labor Courts
Industrial Tribunal
National Tribunal
manufacturing process
10 or more persons are engaged if power is used
or
20 or more persons are engaged if power is not
used
Object?
To protect children & to provide for some
Health of workers
Cleanliness
Disposal of wastes & effluents
Ventilation & Temperature
Dust & fume
Artificial humidification
Overcrowding
Lighting
Drinking water
Latrines & Urinals
Spittoons
Safety of workers
Fencing of machinery
Work on near machinery in motion
Employment of young persons on dangerous machine
Striking gear & devices for cutting off power
Self acting machines
Casting of new machinery
Prohibition of employment of women & children near cotton
opener
Hoists & Lifts
Lifting machine, chains, ropes & lifting tackles
Revolving machinery
Safety of workers
Pressure plant
Floors, stairs and means of access
Pits, sumps, openings in floors etc
Excessive weights
Protection of eyes
Precautions against dangerous fumes
Precautions regarding the use of portable electric light
Precautions against explosive or inflammable dust, gas, fire etc.
Power to require specifications of defective parts or tests of
stability
Safety of building & machinery
Maintenance of building
Safety officers
Welfare of workers
Washing facilities
Facilities for storing & drying clothes
Facilities for sitting
First aid appliances
Canteens
Shelter, rest rooms & lunch rooms
Creches (>30 women workers)
Welfare officers (>500 workers)
Working hours
Not more than 48hours per week or 9 hours per day
Intervals of rest fixed by factory
Women employees 6AM to 7PM
Ordinary rate of wages = Basic wage + Allowances
Extra wages for overtime wages at twice the ordinary rate
Annual leave with wages
1 day for every 20/15 days of work performed in case of adult/child
Application for leave atleast 15 days before for private, 30 days
for public utility service
Maternity leave not exceeding 12 weeks
(Gross Salary).
Benefits?
Sickness benefit
Maternity benefit
Disablement benefit
Dependants benefit
Medical benefit
Funeral expenses
Employee?
Any person employed for wages in or in connection with
Wages?
All remuneration paid in cash to an employee except
Contribution?
Contribution Sum of money payable to ESI Corporation by the
Rate of Contribution
Employer
Employee
Authorized Officer?
Central PF Commissioner
Additional Central PF Commissioner
Deputy PF Commissioner
Regional PF Commissioner
Contribution is made to
Employees Provident Fund Scheme
Employees Pension Scheme & Fund
Employees Deposit Linked Insurance Scheme (EDLI) & Fund
Contribution
ESI is covered to employees whose wages are upto
Employers Contribution
1.10%of Basic
Salary
0.50% of Basic
Salary
Characteristics of the
company
1. Separate legal entity
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9.
Limited liability
limited by shares
limited by guarantee
Perpetual succession
Common seal
Transferability of shares
Separate property
Capacity to sue
Company Vs Partnership
Company
Partnership
Regulated under
Companies Act 1956
Managed by Directors,
Board of Directors
Company Vs Partnership
Shares are transferable when
the transferee becomes the
member
Members
Public
Pvt
Min
Max
No limit
50
Min-2
Max- banking 10
others 20
No statutory provisions
Dissolved by death/
insolvency of partner or
wound if it is for fixed period.
Private Co.
Min members- 7
Min- 2
Max - 50
No restriction
No public invitation
Quorum members 5
Managerial remuneration
cannot exceed 11% of NP
No restrictions
No privileges
Special priviliges
Fundamental document
Lays down the area of operation
Regulates the external affairs of the co in relation to outsiders
Articles of Association if any(public limited co limited by
shares need not have its own AOA
Rules and regulations and bye-laws for the internal management of the
affairs of a company.
(4)
(5)
(6)
(7)
(8)
interview/test (b) Designation and address of the person to whom applicants should report
tested.
Employer to furnish the result of selection within 15 days.
Submission of Returns
Quarterly in Form ER-I - Within 30 days by 30th June, 31st March, 30th
September & 31st December
BIENNIAL Return Form ER-II Within 30 days of the due date as
notified in the Official Gazette
apprentices
Types
Technician (Vocational) Apprentice
Undergo training for 2 years inorder to hold a certificate in
vocational course after completing secondary stage of school
education, recognized by All India Council of Technical Education
Trade Apprentice
Employers responsibilities
Total number of hours/week = 42 to 48 (6AM to 10PM)
Employer shall look after
Offer & Acceptance of employment
Practical & basic training of apprentices & related
instructions
Health, Safety & Welfare of apprentices
Leave / Overtime hours
Payment of stipend
Compensating for injury during training
Holding test & granting certificate
Records, settlement of disputes
establishments for certain periods before & after child birth &
to provide for maternity benefit & other certain benefits
Wage?
Remuneration in cash + Cash Allowances including DA & HRA +
Liabilities of Employer
Pregnant women are prohibited to work in establishments
Registration of Establishment
Principal employer employing 20 or more workers through
Rs.60
Rs.150
Rs.300
Rs.600
Rs.1200
Rs.1500
Licensing of Contractor
Engaging 20 or more than 20 workers and on deposit of
Rs.15.00
Rs.37.50
Rs.75.00
Rs.150
Rs.300.00
Rs.375.00
Rate of Gratuity
Penalties
If an employer
Omits or fails to produce any register, muster-roll, any information or other
India and some of the states have formulated different professional tax slabs
for men, women, and the senior citizens of the respective states.
Eg: Tamil Nadu's Tax Slabs: Half yearly basis Half yearly Income
Nil
Between Rs.21001-Rs.30000
Rs.75
Between Rs.30001-Rs.45000
Rs.188
Rs.390
Rs.585
Beyond Rs.75001
Date of payment
15th of succeeding month + additional 5 days grace
Rs.810
Duties of Contractors
To furnish prescribed particulars to the specified authority in State from
The wage rates, holidays, hours of work and other conditions of service of an
inter-State migrant workman shall remain the same as any other workman in
that establishment and Minimum Wages Act, 1948 is also applicable to them
migrant workman in his State to the place of work in the other State
Other facilities such as suitable conditions of work, residential accommodation,
sex, in case of fatal accident or serious bodily injury to any such workman to
report to the specified authorities of both the States and also the next-of-kin of
the workman
of age.
Penalties
Violations under Section-3 shall be
punishable with imprisonment - 3 months to 1 year or
with fine of Rs.10,000 to Rs.20,000 or with both.
Continuing offence shall be punishable with imprisonment for a term of 6 months
to 2 years.
Government
workers relating to
provident fund,
employment injury benefits,
housing,
educational schemes for children,
skill upgradation,
funeral assistance and
old-age homes
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