EMPLOYEE BENEFITS AND SOCIAL SECURITY RELATED LAWS

MADE BY: Nitya

WORKMENSS COMPENSATION ACT, 1923 y MATERNITY BENEFIT ACT, 1961 y E.S.I.C. ACT, 1948 y PROVIDENT FUND ACT, 1952 y PAYMENT OF GRATUITY ACT, 1972
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ACTS COVERED ARE

WORKMENS COMPENSATION ACT, 1923

It is one of the earliest labour welfare and social security legislation enacted in India. y It recognizes the fact that if a workman is a victim of accident or an occupational disease in course of his employment, he needs to be compensated
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Introduction to the Act

Provide workmen and/or their dependents some relief in case of accidents arising out of and in the course of employment y To enable a workmen to get compensation irrespective of his negligence. y It lays down the various amounts payable in case of an accident, depending upon the type and extent of injury.
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Objectives of the Act

Act provides for cheaper and quicker mode of disposal of disputes through special proceedings than possible under Civil Laws. y Act provides compensation to workmen for injury caused by accident and occupational disease arising out of and in the course of employment. y Procedure for settlement of claim is through Commissioners.
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Features of the act

An employer is liable to pay compensation to a workman: y For personal injury caused to him by accident, and y For any occupational disease contracted by him.

Employers Liability for Compensation [Section 3]

It includes:y Must have been caused during the course of his employment; and y Must have been caused by accident arising out of his employment.

Persona l injury

Any of these occupational diseases shall be deemed to be: y An injury by accident within the meaning of the Act and compensation is payable to the workman who contracts such disease; y The types of employment which exposes the workman to occupational disease as well as the list of occupational diseases are contained in Schedule III of the Act.

OCCUPATIONAL DISEASES

Compensation payable to a workman depends on: y The nature of the injury caused by accident. y The monthly wages of the workman concerned, and y The relevant factor for working out lump-sum equivalent of compensation amount.

AMOUNT OF COMPENSATION

New Section 4 provides for compensation for: y 1) Death; y 2) Permanent total disablement; y 3) Permanent partial disablement; and y 4) Temporary disablement total or partial.

THE MATERNITY BENEFIT ACT, 1961 ACT NO. 53 OF 1961 12th December, 1961

OBJECTIVE OF THE ACT

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To Provide Healthy Maintenanc e Of Pregnant Women Employee and her child APPLICABILITY Every factory, mine or plantation (including those belonging to Government) and  To every shop or establishment wherein 10 or more persons are employed

No employer shall knowingly employ a woman in any establishment during the six weeks immediately following the day of her delivery, y No women shall work in any establishment during the six weeks immediately following the day of her delivery
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RIGHT TO PAYMENT OF MATERNITY BENEFITS

No pregnant women shall, on a request being made by her in this behalf, be required by her employer do any work which is of an arduous nature or which involves long hours of standing, or which in anyway is likely to interfere with her pregnancy or the normal development of the foetus, or is likely to cause her miscarriage or otherwise to adversely affect her health.

Must actually work for 80 days in 12 months immediately preceding her date of Delivery. y Should intimate the employer Seven Weeks before her delivery date about the leave period. y Can take advance payment for 6 week leave before delivery y Can take payment for 6 week leave after child birth within 48 hours after submitting the proof.
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CONDITIONS FOR CLAIMING BENEFITS

Cash Benefits
84 Days Leave with pay A medical bonus of Rs. 1,000/-(As Per latest Amendment) An additional leave with pay up to one month In case of miscarriage Six weeks leave with average pay Non Cash Benefits Light work for 10 weeks (6 weeks plus 1 month) before delivery. 2 Nursing breaks of 15 Minutes until the child 15 months old. No discharge or dismissal while on maternity leave. No charge to her disadvantage while on maternity leave.

Penalty for Contravention of Act

Imprisonment with minimum period of 3 months to maximum 1 year Fine from Rupees Two Thousand to Rupees Five Thousand.

THE EMPLOYEES STATE INSURANCE ACT, 1948

The Employee State Insurance Act, 1948, is a Introduction legislation enacted piece of social welfare primarily with the object of providing certain benefits to employees in case of sickness, maternity and employment injury and also to make provision for certain others matters incidental thereto. y The Act in fact tries to attain the goal of socioeconomic justice enshrined in the Directive principles of state policy under part 4 of our constitution, in particular articles 41, 42 and 43 which enjoin the state to make effective provision for securing, the right to work, education and public assistance in cases of unemployment, old age, sickness and disablement.
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Applicability
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y y y

Under sec 1(4) of the act, the Act applies to non-seasonal, power using factories or manufacturing units employing twenty or more persons on wages. Now, the provision of the act have also been extended the under sec 1(5) of act to cover : Like shops, hotels, restaurants, cinemas, employing 20 or more persons Act does not apply to: Mines Railway running sheds Govt. factories or establishments and

Employees : 1.75% on total monthly wages y Employer : 4.75% on total monthly wages y (Employees whose average daily wage is below Rs. 15 are exempted from payment of their contribution , only the employers contribution will be payable at 4.75% in respect of such employee.)
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Contribution Under ESIC Act, 1948

Both the employers and the Employees contribution are to paid in cash or by cheque , into the State Bank of India or any other bank authorized by the ESI Corporation, by filling in a prescribed Challan within 21 days following the end of the calendar month (like contribution period from 1st April to 30th sep. & the corresponding benefit period shall be from 1st Jan to 30th June) in which the contribution falls due. Because these periods are fixed. An employer who fails to pay his contribution within the periods specified shall be liable to pay interest & damages for late payment under sec 85 (B) of the act. y The Bank will retain two copies of the Challan and return other two to payment one employer, Time &Method fortheOffice of theof for submitting to the Regional Corporation and Contribution the other for the record of the employer.
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y An employee is not entitled to receive two Benefits cannot be combined

benefits at the same time. That means he cannot receive for the same period. y (a) Both sickness benefit and maternity benefit; or y (b)Both sickness benefit and disablement benefit for temporary disablement; or y (c) Both maternity benefit and disablement benefit for temporary disablement

Punishment for false statement :- In this case any false statement or false representation, shall be punishable with imprisonment up to six month or Rs.2000 or with both Punishment for failure to pay contributions :if any person fails to pay any contribution which under to this act he is liable to pay, he shall be punishable with imprisonment up to three years.

Punishment for other contravention :- in contraventions like dismisses, discharges, reduces or otherwise punishes an employee, shall be punishable with imprisonment up to one year or with fine up to Rs.4000 or with Offences and penalties both
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Employees State Insurance (ESI) Corporation, a statutory body headed by the Union Labor minister, has revised its benefit rates of those insured and employers coming under the sub-regional office, ESI Corporation Pune. The rates are revised as follows w.e.f. December 1, 2007: y 1. The daily rates of sickness benefit as given under rules 55 has been increased by 20 per cent. y 2. Daily rates of disability benefits have been increased to 50 per cent form 40 per cent. y 3. Daily rates of dependents benefit have been increased to 50 per cent from 40 per cent. y 4. Funeral w.e.f. 01.12.2007 Revisionexpenses. given under rule 59 has w.e.f 3,000/- from Rs. been increased to Rs. 2,500/y

y The Employees Provident Funds Act, 1952 Employees Provident FundsScheme,

1952 was introduced in November 1952 to provide old-age and post service financial support to the workers in general employed in Industrial & Commercial Sector establishments. The scheme provided for provident fund system on contributory basis by the Employers and the Employees at equal rate.

Contribution of Employee :12% of the Pay Pay includes basic wages

VOLUNTARY CONTRIBUTION: Member shall be at liberty to make voluntary contribution Employer can not reduce Pay y Minimum PF Contribution: 12% of the Pay y Maximum PF Contribution: 100% of the Pay # Tax Benefits to the contribution are applicable as per Income Tax Rules
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Contribution

y y y y y y y y y y y y y y y y y

Purchase dwelling site Construction of a dwelling house Completing construction of the house Buy a dwelling house /Flat from Agency Purchasing a newly constructed/old dwelling house or flat from an individual Purchasing house/flat from a promoter Additional Loan -alterations/improvements Further housing withdrawal Repayment housing loan Withdrawal on 54 Years or within 1 year before actual retirement Closure or lockout/non-receipt of wages for a continuous period of 2 months etc. Further advance in case of closure or lock-out of establishment/ factory for more than 6 months Advance for illness of member and his family For marriage, or post matriculation education Property damaged by a nature calamity If Members affected by cut in the supply of electricity Member physically handicapped

Type of Advance from PF accumulations

y y y y

An employee may be allowed to make a nomination conferring on one or more persons the right to receive the provident fund amount If an employee nominates more than one person, he shall, in his nomination specify the amount or share payable to each of the nominees. Where an employee has a family at the time of making a nomination, the nomination shall be in favour of one or more persons belonging to his family Any nomination made by an employee in favour of a person not belonging to his family shall be invalid. If at the time of making a nomination the employee has no family, the nomination may be in favour of any person or persons A nomination made by an employee may, at any time, be modified by filing Form no. 2 g) Where the nomination is wholly or partly in favour of a minor, the Member may, appoint a major person of his Family to be the guardian of the minor nominee Provided that where there is no major person in the Family, the Member may, at his discretion, appoint any other person to be a guardian of the minor nominee.

Nomination

y y y y

y y y y

Member is entitled to withdraw full amount: On retirement from service. On retirement on account of permanent and total incapacity for work due to bodily or mental infirmity. Immediately before migration from India for permanent settlement abroad or for taking employment abroad On termination of service in the case of mass or individual retrenchment On termination of service under a voluntary scheme of retirement After two months of resignation. In case of no employment # A member of the Fund shall continue to be a member until he withdraws under aforesaid conditions

Withdrawal from the Fund

An Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments and for matters connected therewith or incidental thereto ( shall be applicable to whole of india except the state of jammu and kashmir.

Payment of Gratuity Act, 1972

Every factory (as defined in Factories Act), mine, oilfield, plantation, port and railway. Every shop or establishment to which Shops & Establishment Act of a State applies in which 10 or more persons are employed at any time during the year end. Any establishment employing 10 or more persons as may be notified by the Central Government.

Once Act applies, it continues to apply even if Applicability employment strength falls below 10.
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Any person employed on wages/salary. At the time of retirement or resignation or on superannuation, an employee should have rendered continuous service of not less than five years, In case of death or disablement, the gratuity is payable, even if he has not completed 5 years of service.

Eligibility

The quantum of gratuity is to be computed at the rate of 15 days wages (7 days wages in case of seasonal establishments) based on rate of wages last drawn by the employee concerned for every completed year of service or a part thereof exceeding 6 months. The total amount of gratuity payable shall not exceed the prescribed limit. In case where higher benefit of gratuity is available under any gratuity scheme of the Co., the employee will be entitled to higher benefit

Benefits

Gratuity = Monthly Salary x 15 days x No. of yrs. of service 26 y Max. Gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997)
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Calculation of Gratuity

Nonpayment of gratuity payable under the Act is punishable with imprisonment up to 2 years (minimum 6 months) and/or fine up to RS 20,000/-. y Other contravention/offenses attract imprisonment up to 1 year and/or fine up to RS 10,000
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Penal Provisions

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