SEMINAR ON LABOUR LAWS Organised by:-

WESTERN INDIA REGIONAL COUNCIL OF

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA (WIRC), “ICAI BHAWAN”, 27 CUFFE PARADE, COLOBA, MUMBAI – 400 005

Date:-

8th November 2014

Faculty Trainer:Adv. Ramesh L. Soni Management Consultant and Advisor on Labour Laws

Index Sr. No

1 2 3 4 5 6

Topic

Page No.

7

Employees’ State Insurance Act, 1948 The Payment of Wages Act, 1936 Definition of Wages Maharashtra Minimum Wages Chart The Payment of Bonus Act, 1965 The Maharashtra Labour Welfare Fund Act, 1953 Payment of Gratuity Act, 1972

4 67 75 78 90 96 100

8 9 10

Maharashtra Profession Tax Act, 1975 Statutory Compliance: - Various Returns Useful Website &Disclaimer

117 127 130

2

3

Employ ees’ State Insuranc e Act , 1948 Long Back in 1923, the Government, by enacting the Workmen‘s Compensation Act, provided some Social security to the industrial workers. The benefit provided by this act was, however, limited to compensation for injury caused by accident. Besides, the cost of compensation was to be borne entirely by the employer. By enacting the Employee‘s State Insurance Act, 1948, the Government introduced a scheme of social insurance for the industrial workers. Under the scheme, the workers also are required to contribute to a social insurance fund, which is to be utilised for conferring benefits on them. The Employee‘s State Insurance Act, 1948, provides to the workers not only accident benefit but also other benefits such as sickness benefit, maternity benefit and medical benefit. Object:The object of the Act is to secure sickness, maternity, disablement and medical benefits to employees of factories and establishments and dependents‘ benefits to the dependents of such employees. Coverage under the ESI Act, 1948:The Act is applicable to the *Factory, u/s 2(12) has amended to facilitate coverage of smaller factories and all factories which employ 10 or more persons whether are run by power or without power (w.e.f. 1st June 2010) Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons. There is exception, by virtue of notification dt:- 31st Mach 2008, a person with disability under Disabilities Act, 1955 and National Trust for Welfare of Persons with Disabilities Act, 1999 is entitled to be covered under the Act even through his wage exceeds Rs. 15000/- p.m. (w. e. f. 1st May 2010) The Rule 50 of Central Rules stands suitably modified as to cover persons with disability drawing wages up to Rs. 25000/- p.m. (ONCE COVERED; COVERED FOR EVER) The Factory or Establishment shall continue to be governed by the Act notwithstanding the fall in the number of persons employed or discontinuance of the use of power w.e.f. 23rd Oct 1989 Areas Covered:The ESI Scheme is being implemented area-wise by stages. The Scheme has already been implemented in different areas in the all States & Union Territories i.e. Delhi, Chandigarh and Pondicherry

4

Non Implemented States:Nagaland, Manipur, Tripura, Sikkim, Arunachal Pradesh and Mizoram.

a) b) c) d) e) f)

Applicability: All Factories Employing 10 or more persons whether they are run by Power or without Power (w.e.f. 1st June 2010) Shop Employing 20 or more persons The existing wage-limit for coverage under the Act, is Rs.15,000/- per month, excluding overtime wages. (with effect from 1.05.2010) Disabled Employees wage limit for coverage under the Act, is Rs. 25000/- per month, Insurance Number is to be taken from respective branch office. Any Establishment which the State Government may specifically notify as being covered. Certain States like Delhi, Punjab, Karnataka, Andhra Pradesh ESIC Applicable on 10 employees to different industries. (School, Hospitals, etc.) Note:As soon as the above conditions are fulfilled the employer should furnish the details in Form01 to ESIC office for registration under the ESI Act, 1948 & Obtaining of the Company‘s Code Number. Following Employees also Entitled for ESI Coverage (Gross Salary/Wages Rs. 15,000/-P.M.):The employees have been held to be covered under the Act (establishment or factory should be covered under the ESI Act):-

1) Persons employed in a canteen of a club 2) Drivers employed by the transport organisation 3) Persons engaged in the distribution and sale of products 4) Persons carrying administrative work of processing the orders and executing sales 5) Hawkers employed for sale of products 6) Employees of cycle stand and canteen run in cinema theatres by contractors 7) Members of editorial and administrative staff of a printing press publishing newspaper 8) A home worker rolling beed is at home 9) Medical Representative 10) Persons employed in a hospital attached to an maintained by factory 11) Part-time doctor employed by ambulance room 12) Book binders engaged by a contractor 13) Sales clerk working in a factory
Is Directors Coverable? A directors and the managing director of a company, who is paid a less than Rs. 15,000/remuneration per month, have been held to be an employee for the coverage purpose
Is Partners Coverable? A partner engaged for the work of the factory or establishment and being paid monthly even less than Rs. 15,000/- P.M is not an employee as defined under the definition of ESI Act.

5


Is OT counted for Coverage Purposes? An employee whose wages (excluding OT wages) exceed Rs. 15,000/-P.M at any time after the beginning of the contribution period, shall continued to be covered until the end of that contribution period.
Is Consultants are employees??? Consultants do not work in the premised of the company. Their work is carried out in their own places. They are engaged as consultants in the matter of carrying on the business of the respondent first as retaining tax consultants such engagement cannot create employeremployee relationship.
Employer Contribution not to be deducted:No deduction shall be made from the wages / salary of any employee for the employers contribution payable or paid in respect of him.
Recovery of Contribution in respect of Contract Labour:The Principal Employer may deduct the amount of contributions both employers and employees, payable in respect of employees engaged through the contractor, from the bill of the contractor. The Contract is entitled to deduct the employee contribution from the wages payable to such contract employee in respect of the period for which the contribution is payable Following Documents are required for deciding Final Date of Coverage under ESI Act / EPF Survey: I.

Manufacturing Unit:1. Date of 1st Trial Production. 2. 1st Electricity Bill. 3. Details of Gala Purchase (viz. copy of the Agreement) 4. 1st Sale Bill 5. 1st Purchase Bill (Machinery Purchase Bill etc.) 6. V.A.T, P.Tax & T.I.N Number Certificate / Service tax registration certificate (if applicable). 7. Books of accounts (Ledger, cash books etc.) since beginning. 8. Balance sheet/P & L account (in case of Limited company Annual Report since beginning) 9. Shops & Establishment Registration Certificate/ Factory Licence. 10. Partnership deed (in case of Partnership firm) & Memorandum of Association & Articles (in case of Limited co.) 11. Salary / Wage register & Attendance Register since beginning. 12. Month wise strength of number of employees since beginning. 13. List of Directors/partners/owners along with their residential addresses. 14. Name of the Bankers, Address of the Bank and Name of the Person responsible for financial affairs.

6

II. 1. 2. 3. 4. 5. 6. 7. 8. III. 1. 2. 3. 4. 5. 6. 7. 8. 9.

Restaurant / Residential Hotel Above all documents except Date of 1st Trial Production. Invitation card or paper- cutting of the advertisement Regarding The Inauguration of the Restaurant/Hotel Eating House Licence from the Public Health Department (BMC) Licence for public entertainment in the premises issued by the police department. 1 Sale bill (either restaurant or room sale bill whichever is earlier) Room sale register. Exercise Certificate. Bar permit Licence (if any) Following Points Jointly Are Taken into Consideration While Clubbing The Units:Unit of Ownership (i.e. Management & Control) Unit of Labour (i.e. transferability of employees) Geographical Proximity (i.e. vicinity, bonafides in keeping the unit a part) Source of Finance (i.e. whether source of finance is same) Supervision & Control (i.e. whether managed by same person) Service Conditions of Workmen (i.e. rules applicable, employment contract, if any) Functional Integrality (i.e. integrated whole- part & parcel of main unit, primary & dominant activity, subsidiary, minor, incidental) Unit of Purpose (i.e. production & business, interrelated business) General (i.e. books of accounts / similarity of nomenclature)

Code Number:On receipt of the Employer‘s Registration Form the Regional Office examines the coverage and if it is satisfied that the Act applied to the factory / establishment, will allot a 17 digit Code Number along with User ID and Password to the employer. Only one code Number is allotted to a factory / establishment even though functionally it may have more than one unit / subunit within the same premises/precinct/station. The Code Number so allotted is required to be indicated by the employer in all Correspondence with the Corporation, Regional Office and Local Office. Sub Code Number:There may be a case where an employer is having the main factory / establishment at one station and sub-unit, branch office, sales office or registered office at another implemented station, either within the same State or outside that State. In all such cases, Principle Employer is required to furnish necessary details to the Regional Director concerned for allotment of SubCode Number to each sub-unit, branch office, sales office & registered office etc. Return of contribution is required to be submitted separately for the main Code Number and each Sub-Code Number. The employees working in the branch office/sale office etc. can draw/claim benefit locally from the nearby Local Office with which the branch office / sales office, etc. are attached. Similarly, it would be convenient for the workers to avail medical benefit from the nearby ESI dispensary in the State.

7

Contributions:E.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act. The contribution payable to the Corporation in respect of an employee shall comprise of employer‘s contribution and employee‘s contribution at a specified rate. The rates are revised from time to time. Currently, the employee‘s co ntribution rate (w.e.f. 1.1.97) is 1.75% of the wages and that of emplo y er‘s is 4.75% o f the wag es paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage up to Rs.100/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees. Wages for ESI contributions: - (To be deemed a wages) 1. Basic Pay. 2. Dearness Allowance 3. House Rent Allowance 4. City Compensatory Allowance 5. Overtime Wages (but not to be taken into account for determining the coverage of an employee) 6. Payment of day of rest 7. Production incentive. 8. Bonus other than Statutory 9. Night shift allowance 10. Heat, Gas & Dust allowance 11. Payment for un-substituted holidays 12. Meal / food allowance 13. Suspension allowance 14. Lay off compensation 15. Children education allowance (not being reimbursement for actual tuition fee)

1. 2. 3.

4. 5. 6.

Maintenance of Registers & Returns:Every Employer should maintain a Register in Form 7 Regulation 32 in respect of every employee of his factory or establishment. Every employer shall submit the half yearly Return of Contribution in From 5. Before 12th May & 11th November of current year with Triplicate copies of Challan. The return of contribution includes the Name of Employee, Insurance Number of Employees, detail of contribution paid in particularly period and details of wages / salary paid the in that period, average daily wages/ salary paid. If number of employees goes beyond 40 number then Return of Contribution in Form 5 should be attested by Chartered Accountant ESIC Bound Inspection Book. ESIC Accident Register under Rule 66

8

Recovery:If any employer fails to pay the amount due in respect of any contribution or any other amount payable under the Act, the Corporation can recover from the employer damages up to cent percent of the areas. The corporation is empowered to recover the contribution and the damages as an arrear of land revenue. Collection of Contribution An employer is liable to pay his contribution in respect of every employee and deduct employee‘s contribution from wages bill and shall pay these contributions at the above specified rates to the Corporation within 21 days following the end of the Calendar month in which the contributions fall due. The Corporation has authorized designated branches of the State Bank of India and some other banks to receive the payments on its behalf. Contribution Period and Benefit Period There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under.

1)

2) 3) 4) 5) 6)

7)

8)

Contribution Period

Corresponding Cash Benefit Period

1st April to 30th Sept. 1st Oct. to 31st March

1st January of the following year to 30th June. 1st July to 31st December of the year following

Benefits:Employee is covered immediately on becoming an employee under the ESI Act, along with his / her family members, Free medical treatment is offered to covered employees and their family members, at hospital and dispensaries run by the ESI Corporation. No limit of expenditure on treatment taken from ESIC Hospital / Dispensary Maternity benefit for 12 weeks of which not more than 6 weeks should be preceding confinement Injury during/ in course of employment resulting in temporary / permanent disablement entitles the covered employee to a regular payment to substitute his lost wages. Death during course of employment entitles specified dependents to a regular payment. Onetime payment of Rs. 10,000/- (w.e.f 01/04/2011) to help meet funeral expenses. Rajiv Gadhi Shramik Kalyan Yojna (Unemployment to the IPs who have been rendered unemployed involuntarily due to closure of factory / establishment / retrenchment or permanent disablement) w.e.f. 1st April 2005 Vocational Rehabilitation Scheme is provided in case of disablement of ain Insured Person of under 45 years of age and 40 % or more disablement. There is a provision of Free Supply of physical aids and appliances such as cruthers, wheelchairs, dentures, spectalcles under the act to insured person Insured person can avail cashless treatment in the hospitals referred by ESI Hospital.

9

9) An insured person who retires on attaining the age of superannuation shall be eligible to receive only medical benefits for himself and his spouse if (i) he had been in the insurable employment for not less than 5 years and (ii) if he pays contribution of Rs. 120/- every year in advance. 10) Dependent Parents whose earnings from all sources upto Rs. 5000/- pm (w.e.f. 01/04/2011) are eligible for medical benefits. 11) w.e.f 4th August 2011 an insured person whose claim for any permanent disablement benefit (PDB) has been admitted shall be paid Rs. 100 (Rupees One Hundred Only) as conveyance allowance, in addition to his PDB payment, on each visit to Branch Office for submission of life certificate as required under Regulation 107 of ESI (General) Regulations. 1950. 12) Treating commuting accidents as employment injury. 13) Payment of long – term benefits (PDB/DB) through Electronic Clearing System (ECS) 14) Minimum dependants‘ pension of Rs. 1200/- per family. Following Family Members of an insured employee are entitled to get medical treatment benefits:Where medical benefit is extended to families of insured employees, medical treatment is available to:(a) The Husband or wife of the insured employee, (b) The minor legitimate or adopted children of the insured employee dependent upon him, & (c) The dependent parents of the insured employee, whose monthly income is upto Rs. 5000/Maternity Benefit:-

1. 2. 3. 4. 5.

Eligibility:Woman shall be insured. Contributions to be payable for not less than 70 Days (seventy days) in the preceding two contributions periods She shall not be on duty for wages. To attend medical examination, if so required. To submit medical certificate form Insurance Medical Officer.

Purpose:1. For confinement. 2. For Miscarriage 3. For Sickness caused by Pregnancy, confinement, miscarriage etc. Quantum of Benefit:1. Payable at twice the standard benefit rate specified under Rule 54 or Rs. 25 whichever is higher.

10

2. Confinement expenses (Medical Bonus) of Rs. 5000/- w.e.f. 01/10/2013 when medical facilities not available. 3. No limit for benefit payable in case of Miscarriage / Confinement arises. Duration of Payment:1. For twelve weeks in case of confinement. 2. For six weeks in case of miscarriage. 3. For twelve weeks in case of woman‘s death in or after pregnancy 4. For additional days not exceeding one month in case of sickness arising out of pregnancy, confinement, miscarriage. Time for Payment:First payment to be made not later than 14 days Second and subsequent payments in the following month Requirement by insured woman to claim maternity benefit

1. 2. 3. 4.

Claim for Maternity Benefit for Confinement:Insured woman to give notice of pregnancy in Form 19 before confinement to Branch Office. To submit a Certificate of Pregnancy in Form 20 from Insurance Medical Officer. To submit a Certificate of Expected Confinement in Form 21 from Insurance Medical Officer. To submit a Claim for Maternity Benefit in Form 22 from Insurance Medical Officer within 30 days of occurrence of confident. Claim for miscarriage from Insurance Medical officer:To submit a certificate of miscarriage in Form 18 within 30 days of miscarriage

Claim for Sickness out of Pregnancy / Miscarriage etc.:1. To submit claim in Form 9 2. To submit medical certificate in Form 7 or 8. Claim in case of death of insured woman:1. Nominee specified in Form I by the deceased woman to submit claim in Form 20 of Reg. 89 A

2. Legal Representative (if no nominee) to submit claim in Form 20. 3. To submit death certificate in Form 21 Rate of Payment of Maternity Benefit:The rate of payment of the maternity benefit is 100% of the average daily wages. Medical Bonus:Insured Women or Insured Person in respect of his wife are entitled for medical bonus for Rs 5,000/- provided the confinement occurs at a place where necessary medical facilities are not available under ESIC institutions w.e.f. 01st October 2013, maximum benefit is given Twice in entire lifetime of Insured Women. 11

In the case of Accident to employee (I.P) while on duty:Accident Report in form no 12 is required to submitted to the appropriate Branch Office as well as to Insurance Medical / I.M.P within 24 Hours of the receipt of notice of injury. In case of fatal or serious accidents, it must be submitted IMMEDIATELY to avoid legal penal action under section 85. 1) If the injured person is serious, i.e. it is likely to cause death or permanent disablement or loss of a member; and 2) In any other case within 24 hours after the receipt of the notice under regulation 65 or of the time when the accident came to the notice of the employer or of a foreman or other official under whose supervision the insured person was employed at the time of the accident or any other person designated for the purpose of the employer. • Provided that in case of a serious injury, and particularly when the injury results in death at the place of employment, the report to the Insurance Medical Officer and the Branch Office shall be sent through a special messenger, or otherwise, as speedily as may be practicable under the circumstances. • Provided further that if the accident does not involve absence of the injured person from work initially, the employer may send report to the Branch Office and the Insurance Medical Officer but shall do so within 48 hours after the absence from work subsequently the results from the injury.

Records to be kept ready for ESI Inspection:1. Attendance Register / Muster Roll. 2. Salary / Wage Register/ Payroll EC Statement (Employees & Employer‘s Contribution) Statement. Employee‘s Register U/R 32 (Form 7) Accident Register in Form 11. Return of Contribution (RC- Form 5) Receipted Copies of Challan Bound Inspections Book Books of Accounts viz. Cash/Bank Book, Expenses register, Sales/ Purchase Register, Petty Cash Book, Ledger, Supporting Bill and Vouchers, along with Delivery Challan (if any), & Balance Sheet. 10. At the time of ESI inspection when job work done outside the factory / establishment premises, which are not having independent code number & engaging less than 10 or 20 employees also when no supervision was exercised & when principle employer do not have any rejection power then following detail / statement to be given to the Insurance Inspector from the books of accounts:a) Name and address of the Contractor / Immediate Employer and Code Number (If any) b) Nature of Work

3. 4. 5. 6. 7. 8. 9.

12

c) Head of A/c under which payment booked d) Payment made w.e.f. 1/8/2007, employees, who are in receipt of daily wages up to and inclusive of Rs. 100/- will not be required to pay employees share of contribution. However, employer‘s share of contribution would continue to be paid.

The Benefits are Revised w.e.f 01st July 2011 are as follows:i)

ii)

1) In rule 2, For clause (1A), the following clause shall be substituted, namely (1A) *average daily wages during a contribution period, in respect of an employee, means the aggregate amount of wages payable to him during that period divided by the number for which such wages were payable. For clause (7A), the following clause shall be substituted namely:‗(7A) ―stan dard benefi t rate‖ means average daily wages obtained by dividing the total wages paid during the contribution period by the number of days for which these wages were paid. 2) In rule 52, for the words ―rupees sev enty ‖, the words ―rupee o ne hundred‖ shall be substituted; 3) In rule 55, for sub-rule (2), the following sub-rule shall be substituted namely:*(2) The daily rate of sickness benefit in respect of a person during any benefit period shall be Seventy Percent, of the standard benefit rate of that person during the corresponding contribution period rounded to the next higher rupee, 4) In rule 56, for sub-rule (5), the following sub-rule shall be substituted namely:*(5) The daily rate of Maternity Benefit payable in respect of confinement occurring or expected to occur during any benefit period shall be equal to the Standard Benefit Rate in respect of the insured woman during the corresponding contribution period, rounded to the next higher rupee, or rupees twenty – five, whichever is higher. 5) In rule 57, for sub-rule (3), the following sub-rule shall be substituted namely:*(3) The daily rate of disablement benefit shall be ninety percent of the standard benefit rate in the contribution period corresponding to the benefit period in which the employment injury occurs, rounded to the next higher rupee.

i)

ii)

Provided that where an employment injury occurs before commencement of the first benefit period in respect of a person, the daily rate of disablement benefit shall be: Where a person sustains employment injury after the expiry of the first wage period in the contribution period in which the injury occurs, ninety percent, of his average daily wages in that wage period, rounded to the next higher rupee; Where a person sustains employment injury before the expiry of the first wage period in the contribution period in which the injury occurs, ninety percent of his wages actually earned or which would have been earned, had he worked for al full day on the date of accident, rounded to the next higher rupee. 13

Explanation:- The disablement benefit calculated as aforesaid shall be called the ―Full Rate‖ 6) In rule 58, for sub-rule (2) the following sub-rule shall be substituted namely:*(2) The daily rate of dependants benefit shall be ninety percent of the standard benefit rate in the contribution period corresponding to the benefit period in which the employment injury occurs. Provided that where an employment injury occurs before the commencement of the (i)

(ii)

first benefit period in respect of a person, the daily rate of dependants‘ benefit shall be:Where a person sustains employment injury after the expiry of the first wage period in the contribution period in which the injury occurs, ninety percent of his average daily wages during that wage period rounded to the next higher rupee. Where a person sustains employment injury before the expiry of the first wage period in the contribution period in which the injury occurs, ninety percent of wages actually earned or which would have been earned had he worked for a full day on the date of accident, rounded to the next higher rupee.

14

BENEFITS AT A GLANCE BENEFITS

a) SICKNESS BENEFIT

CONTRIBUTORY CONDITIONS

sickness specified diseases Leprosy

TO WHOM PAYABLE

RATE

I.P. Should work 91 Days Cash 70% of S.B.R. for wages for 78 Benefits within Two no. of days in the Benefits Periods corresponding C.P. 19.9.1998)

Extended benefit for long term like TB ETC.

DURATION

Only to the insured person.

(w.e.f.

In Insurable employment for at least two years should pay contribution for minimum of 156 days in the

309 days duration 80% more than has been extended the S.B.R Only to beyond 400 days (91 the days S.B. plus 309 insured days E.S.B.) to two person years in deserving cases. Enhanced sickness preceding 4 C.p‘s 7 days for vasectomy as for & Benefit (for Same 14days for sickness benefit Only to undergoing tubectomy extended S.B.R. at (a) above the sterilization in cases of postoperation for family Insured operative Planning) complications etc Person Disablement benefit No Condition (employment injury )

In case of temp disablement: as long as incapacity lasts & in case of permanent disablement: for life time.

(a) for Only to Temporary insured Disablement, person. 90% of S.B.R.

(b)

For

permanent

Total

Disablement specific in Part 1 to 2 schedule at the 90% of S.B.R.

(c)

For permanent partial disablement resulting from an injury specific in Part-II of the 2nd Schedule at such %age of the Full Rate as specific in the said schedule as being the %age of the loss of earning capacity caused by the injury.

15

Explanation: - Where more injuries than one are caused by the same accident, the rate of benefit payable under clauses (c) & (d) shall be aggregated but not so in any case as to exceed the FULL RATE and in cases of disablement not covered by clauses (a), (b), (c) & (d) at such rate, not exceeding the FULL RATE, as may be provided in the regulations.

) For permanent partial disablement resulting from an

Dependent‘s Benefit i ons (employment injury)

3/5th of FULL RATE, if there are 2 or more widows, the amount payable to the widow shall be divided equally between the widows. 2/5th of the FULL RATE, if there are 2 or more sons, the amount payable to the son shall be divided equally between the sons. Subject to min. of Rs. 14/-.

1. To the widow/s during life time until remarriage. 2. To the widowed Mother To the legitimate or adopted SON/S until he attains the age of 25yrs. (w.e.f. 1st June 2010)

injury not specified in part –II of the 2nd schedule at such %age of the Full Rate payable in the case of Permanent Total Disablement as in Proportionate to the loss of earning capacity permanently caused by the injury.

To the legitimate or adopted unmarried daughter/s until she ---------------do--------------attains the age of 25yrs. (w.e.f. 1st June 2010) or until marriage, whichever is earlier. (in case the deceased 3/10th of the FULL RATE. person does not leave a widow or legitimate or 2/10th of the FULL RATE adopted child. D.B. shall be payable to ….. a) parent or grandparent, for a life. ----------------do---------------b) Any other male dependent, until he attains the age of 18 yrs. c) Any other female dependent, until she attains the age of 18 yrs. or until marriage whichever is earlier.

16

An insured person whose PERMANENT DISABLEMENT has been assessed as final and who has been awarded permanent disablement benefit at a rate not exceeding Rs. 5/- per day may apply for a lump- sum payment and such amount shall be determined by multiplying the daily rate of permanent disablement benefit by the figure indicated in Col. 2 of the schedule III of the Regulations. Maternity Benefit Payment of 12 weeks of which 100% of average Only to wages; the contribution for not more than the 6 daily subject to min of Insured 70 days in one or weeks can precede two consecutive the expected date of Rs. 25/-p.day. Person. periods confinement. Medical bonus of 6 weeks for Rs. 5,000/- per miscarriage or for confinement w.e.f medical termination 01/10/2013where To insured of pregnancy. ESI hospital woman or Additional payment facility is not in r/o wife for one month for availed for child of I.P complications (pre or delivery. post) arising out of pregnancy. Medical Benefit

Funeral Expenses

No Condition

From the date of entry of an employee into an insurable employment as long as he remains insurable employment and thereafter for certain additional period. No conditions One time lump-sum (i.e. merely by payment virtue of being an insured person)

Full Medical Person as care including well as hospitalization his/ her family Members as defined u/s 2(11) of the Act. Not more than Rs. 10,000/(w.e.f. 01/04/2011 )

To the eldest surviving member of the family of the deceased I.P or to the person who actually incurs the expenditur e on the funeral of an I.P.

17

Rehabilitation Allowance

No Condition

Medical benefit to insured persons who ceases insurable employment on account of permanent disablement

No conditions but an I.P has to pay Rs. 10/- pm in Lump-sum for one year in advance every year i.e. Rs. 120/-

Medical Benefit to retired insured Period (Old Age Medical Care)

1)Insurable employment for a period of 5 years & 2) In case of permanent physical disablement during the course of insurable employment. 3) payment of Contribution @ Rs. 10/- pm in Lump Sum for one year in advance, each year. Rs. 120/-

For each day of which I.P. remains admitted in Artificial Limb Centre for fixation repair or replacement of artificial limb. Till the date on which an I.P would have attained the age of superannuation

Till the time yearly contribution is paid to the concerned office of the corporation

Double the Only standard sickness the I.P benefit rate but not less than full wages.

-----

-----

to

Medical Benefit to IP and spouse

Insured person and his spouse

OTHER BENEFITS Now it has added the benefit for workers for the accidents happening while commuting to the place of work and vice versa; (w.e.f. 1st June 2010) Unemployment Allowance (Rajiv Gandhi Shramik Kalyan Yojana):Unemployment Allowance is payable to those workers facing involuntary unemployment due to closure of factory/ establishment; retrenchment or permanent invalidity arising out of nonemployment injury. The daily rate of unemployment allowance is at par with the standard sickness benefits rate. Which is just above 50% of the average daily wages. This allowance is payable for a maximum period of 12 months either in one spell or in different spells of not less than one month‘s duration the insured persons eligibility condition has now been relaxed to three years from earlier five years, for being able to avail the unemployment allowance. Medical Care also provided during this period. To avail this benefit the insured person should have been entitled for sickness benefit during the last four contribution periods immediately preceding the date of unemployment Supply of special aids.: Insured persons and members of their families are provided artificial limbs, hearing aids, artificial dentures, spectacles (for insured person only)& artificial appliances like spinal supports, cervical collars, walking callipers, crutches, wheel chairs and cardiac pace makers, dialysis/ dialysis with kidney transplant etc. as part of medical care under the ESI scheme. 18

CONTRIBUTION PERIOD(C.P)

BENEFIT PERIOD (B.P)

DATE OF SUBMISSION OF RETURN

1ST April to 30th September 1st October to 31st March

1st January to 30th June 1st July to 31st December

11th November 12th May

ESI – IMPORTANT CHANGES AT A GLANCE 1.

2.

3.

4.

5 6.

7

Contribution

Repealing of Chapter V A and consequent discontinuance of Employers Special Contribution Rate of Contribution Employees Share Employers Share ) 2.00%of wages 5%of TWB = 7% ) 2.25%of wages 5%of TWB = 7.25% ) 1.50%of wages 4%of TWB = 5.50% ) 1.75%of wages 4.75%of TWB = 6.50% Total Wages* Ceiling Limit for coverage u/s 2(9) Rs. 400/Rs. 500/Rs. 1000/Rs. 1600/Rs. 3000/Rs. 6500/Rs. 7500/Rs. 10000/Rs. 15000/Rs. 25000/- for Physically Handicapped Ad hoc Calculation of Assumed wages per month Rs. 350/Contribution Rs. 440/Rs. 550/Rs. 880/Rs. 1650/Rs. 3575/Rs. 4125/Rs. 5500/Rs. 8250/Coverage of employees working in H.O/B.O/S.O u/s 2(9) etc Extension of coverage to u/s 1(5) of the Act. Commercial sectors in Sectors Covered: Mumbai Region Hotels & Restaurants Cinema Theatres including Preview Theatres Shops Newspapers Establishments Road Motor Transport Rate of Interest

Rate 6% 12% 15% 12%

w.e.f. 01-07-1973

07-07-89 to 26-01-85 27-01-85 to 31-3-92 01-04-92 to 31-12-96 From 01-01-1997 Date from which applicable Up to 30-6-73 *excluding Form 01-07-73 1) over time From 3011-75 2) washing From 27-01-85 allowance where From 01-04-92 uniform supplied From 01-01-97 for employees From 01-04-04 From 01-10-06 From 01-05-10 From 01-042011 From 01-06-1976 From 07-09-1980 From 01-04-1983 From 27-01-1985 From 01-04-1992 From 01-01-1997 From 01-04-2004 From 01-10-2006 From 01-05-2010 w.e.f. 28-01-1968

w.e.f. 12-11-1978 --------do---------------do---------------do-------w.e.f. 13-03-1989 Period from which applicable Up to 19-10-1989 From 20-10-1989 From 01-09-1994 From 01-10-2005 19

8

Rate of damages (by way of penalty)

19% 13% Slab System ---------------------- Below 2 months 5% 2months & above, But below 4 months 10% 4 months & above, But below 6 month 15% 6 months & above 25% (subject to max 100%)

LIST OF DISEASES FOR ADMISSIBLE 1. Tuberculosis 2. Leprosy 3. Chronic Emphysema 4. Brocnhiatesis 5. Intersistial Lung Diseases 6. HIV/ AIDS 7. Malignant Diseases 8. Diabetes Mellitus with proliferative retinopathy/ diabetic foot/ nephropathy. 9. Monoplegia 10. Hemiplegic 11. Paraplegias 12. Hemiparesis 13. Intracranial space occupying lesion 14. Spinal Cord Compression 15. Parkinson‘s disease 16. Myasthenia Gravis/ Neuromuscular Dystrophies 17. Immature cataract with vision 6/60 or less.

WHICH

EXTENDED

From 09-75 up to 19-10-89 From 20-10-89 up to 31-12-91 From 01-01-1992

SICKNESS

18. Detachment of Retina 19. Glaucoma 20. Coronary Artery Diseases a) Unstable Angina b) Myocardial Infraction with ejection less than 455. 21. Congestive Heart Failure Left/ Right. 22. Cardiac Valvular Diseases with failure complications. 23. Cardimyopathies 24. Heart Disease with surgical Intervention along with complications. 25. Chronic Obstructive Lung Disease (COPD) with congestive heart failure (Cor Pulmonale) 26. Cirrhosis of liver with ascitie / chronic active hepatitis

BENEFIT

IS

27. Dislocation of vertebra / prolapsed of intervertebral disc. 28. Non union or delayed union of facture 29. Post Traumatic Surgical amputation of lower extremity. 30. Compound Fracture with chronic ostemyelities 31. Psychosis – the following sub groups:a) Schizophrenia b) Endogenous depression c) Manic depression Psychosis (MDP) d) Dementia 32. More than 20% burns with infection/ complication. 33. Chronic Renal Failure 34. Reynaud‘s diseases/ Burger‘s disease.

Restrictions:When a person is entitled to any of the benefits provided under the Act, he shall not be entitled to receive any similar benefit under any other enactment. An insured person will not be entitled to receive for the same period: 1) Both sickness benefit and maternity benefit; or 2) Both sickness benefit and disablement benefit for temporary disablement; or 3) Both maternity benefit and disablement benefit for temporary disablement. 20

When a person is entitled to more than one of the benefits, he has an option to select any one of them.

Protection:The employer cannot dismiss, discharge or otherwise punish an employee during the period he/she is in receipt of sickness benefit or maternity benefit, or of disablement benefit, or is under medical treatment for sickness, or is absent from work as a result of illness which arises out of pregnancy or confinement. Any notice of dismissal, discharge or reduction during the period specified above is invalid and inoperative: An employer can discharge or punish an employee on due notice if: 1) He/she has received temporary disablement benefit and remained absent for six months or more continuously; 2) He/she is under medical treatment for sickness, otherwise than T.B. or a disease arising out of pregnancy, and has remained absent continuously for six months or more; and 3) He/she is under medical treatment for T.B or a malignant disease and has remained absent continuously for 18 months or more.

22

Offences and Penalties:Offences Whoever, knowingly makes any false statement or representation for the purpose of (a) claiming or increasing any benefit or payment allowable to him, or (b) avoiding any payment payable by him a) Failure to pay employees‘ contributions deducted from their wages Failure to pay contributions

Penalties Imprisonment upto 6 months or fine upto Rs. 2,000 or both

Imprisonment upto 3 years (minimum one year) and fine of Rs. 10,000/Imprisonment upto 3 years (minimum 6 months) and fine of Rs. 5000/Deduction of any sum from or reduces Imprisonment upto one year or fine upto wages of an employee on account, of Rs. 4000/- or both employers contribution Reduction of the wages or any privilege or Same as above benefits admissible to contravention of section 72

an

employee

in

Dismissal / discharge of an employee in contravention of section 73 Failure to submit any return or submission of false return Obstruction of any inspector in allowing him to discharge his duties Contravention of any other provision of the act, rules or regulations On every subsequent offence committed after conviction for the same offence being so mentioned at 2(a) or (b) above On every subsequent offence committed after conviction for the same offence being any other offence

Same as above Same as above Same as above Same as above Imprisonment upto 5 years (minimum 2 years) and fine of Rs. 25000 Imprisonment upto 2 years and fine of Rs. 5000/-

Penalties:Different punishment have been prescribed for different types of offences in terms of Section 85: (I) (Six months imprisonment and fine), and 85-A: (five years imprisonment and not less than 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. Provision for non-payment: For employees‘ contribution : Imprisonment for 1yrs. to max. 3yrs. and/ or fine of Rs. 10,000/For employers‘ contribution : Imprisonment for 6 months to max 3rs. And/or fine of Rs. 5,000/23

Employees Insurance Court:A dispute arising under the Act shall be decided by the Employees‘ Insurance Court and not by a civil court. The Employees‘ Insurance court shall be constituted by the State Government for such local areas as may be specified and consisting of such number of judges as the Government may think fit. Conditions for Admission of Certain Disputes:No matter which is in dispute between an employee and the ESI Corporation in respect of any contribution or any other dues shall be admitted unless the employer deposits with the court @ 50% of the amounts due from him as claimed by the Corporation. The court may, however waive or reduce the amount to be deposited for reasons to be recorded in writing. Appeal:An appeal shall made to the High Court against an order of an Employees‘ Insurance Court, if it involves a substantial questions of law. The appeal should be preferred within 60 days. Miscellaneous:Cash benefits payable under the Employees‘ State Insurance act are not liable to attachment or sale in execution of any court decree or order. Also, the right to receive any benefit is not transferable or assignable. Where a dispute arises under the provisions of the Act, that matter has to be decided by the Employees‘ Insurance Court and not by civil court. An appeal will lie to the high court from an order of the Employees‘ Insurance Court if it involves a substantial question of law. The period of limitation for appeal is 60days. The delay can be condoned for sufficient reasons. •

Any arrears payment for past period paid to employees on that amount ESIC Contribution is not payable For example: - In month of April 2012 a particular employee is earning salary / wages Rs. 14000/per month; but management has decided to increase the salary of that employee from Rs. 14000/per month of Rs. 16000/- in month of August 2012 w.e.f. 01st April 2012, so in this case the company will pay arrears dues for the month of April, May, June, July, i.e. Rs. 2000/- per month for 4 months i.e. Rs 8000/- on this arrears amount ESIC contribution is not payable, but in month of August 2012 Salary / Wages Rs. 16000/- on that amount ESIC Contribution is payable till completion of Contribution period i.e. till September 2012

24

Non-implemented area in Maharashtra Sr. No

Area

District

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43

Alibaug Riagad Asangaon & Shahpur Dronagare Khopoli Mahad Murbad Nagothane Patalganga Panvel Pen Roha Rasayani Uran Dhanu Road Palghar Tarapur (Brisor) Anchalpur ` Bhugaon Durgapur Gondia Gadegaon Jalna Jam Kalmeshwar Khamgaon Koradi Latur Madgi (Tamsar) Mouda Paithan Wahegaon (MIDC) Wardha Warthi Warora Yeotmal Ahmednagar Baramati Bavdhan BK & Khurd Bhor Bhusawal Chakan Chincholi Chiplun

Thane Thane Thane Kolaba Raigad Thane Raigad Kolaba Kolaba Raigad Raigad Kolaba Raigad Thane Thane Thane Amravati Wardha Chandrapur Bhandara Bhandara Jalna Wardha Nagpur Buldhana Nagpur Latur Bhandara Nagpur Aurangabad Aurangabad Wardha Bhandara Chandrapur Yeotmal Ahmednagar Pune Pune Pune Jalgaon Pune Solapur Pune

44 45

Daund Deepanagar Shivar

Pune Jalgaon

46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87

Dindhori Dushkheda Ekrahare Gokul Shirgaon Hatkanagale Jaisingpur Jejuri Kanhe - Phata Karad Karmala Khandala Khandari Shivar Khed Kirloskarwadi Kudal Kumbhari Lonawala(Peripheral) Mirzol Nandurbar Ogalewadi Pachora Palus Phursungi Phopali Pirangut Ranjangaon Ratnagiri Sahada Saswad Sajani Sanaswadi Shiroli Shrirampur Shindekhed Shivanewadi Shirwad Sinnar & Malegaon Talegaon(Peripheral) Vengurla Wai Walchandnagar Walsang

Nasik Jalgaon Nasik Kolhapur Kolhapur Kolhapur Pune Vadgeon Satara Solapur Satara Bhusawal Ratnagiri Sangli Sindhudurg Solapur Ratnagiri Jalgaon Satara Jalgaon Sangli Hadapasar Satara Pune Pune Ratnagiri Dhule Pune Kohlapur Pune Kolhapur Ahmednagar Dhule Kolhapur Kolhapur Nasik Sindhu Durg Satara Pune Solapur

25

List of Various Forms used under ESI:FORM NO.

SUBJECT

RELEVANT REGULATION

TO BE USED BY

FORM-01 FORM-01(A)

Employer's Registration Form Form of annual information on factory/establishment covered under ESI Act Declaration Form Family Declaration Form Addition/Deletion in Family Declaration Form Return of Declaration Form Return of Contribution Advance payment of contribution Return of Contribution Register of Employees Claim for Sickness/ Temporary Disablement Benefit/Maternity Benefit Accident Book Accident Report from Employer Claim for Permanent Disablement Benefit Claim for Dependent Benefit Claim for periodical payment of Dependent Benefits Claim for Maternity Benefit and notice of work Claim for Maternity Benefit after the death of an Insured Women leaving behind the child Funeral Expenses Claim Life Certificate for Permanent Disablement Benefit Declaration and Certificate for Dependents Benefit Wage/Contributory record for disablement benefit Certificate of re-employment/continuous employment Application for change in particulars of Insured Persons regarding change of Branch Office/Dispensary Declaration form regarding payment to the legal heir/representative of the deceased IP Particulars of contribution in case Return of Contribution in respect of an IP not sent Application for duplicate Identity Card Certificate of Employment Certificate of Entitlement Certificate of continuous employment for Extended Medical and Sickness Benefit Claim for conveyance allowance and/or compensation for loss of wages for an IP appeared before the medical board

10 B 10 C

Employer Employer

11 & 12 15-A 15-B 14 26 31 31 32 63 & 89(B)

Employer Employer Employer Employer Employer Employer Employer Employer IP/Beneficiary

66 68 76(a) 80 83(A) 88, 89 & 91 89(A)

Employer Employer IP/Beneficiary IP/Beneficiary IP/Beneficiary IP/Beneficiary IP/Beneficiary

95(E) 107 107(A)

Beneficiary IP/Beneficiary IP/Beneficiary Employer Employer

FORM-1 FORM-1(A) FORM-2 FORM-3 FORM-5 FORM-5(A) FORM-5 FORM-6 FORM-9 FORM-11 FORM-12 FORM-14 FORM-15 FORM-16 FORM-19 FORM-20 FORM-22 FORM-23 FORM-24 ESIC-32 ESIC-37 ESIC-53

ESIC-63 ESIC-71 ESIC-72 ESIC-86 ESIC-105 ESIC-126 ESIC-142

IP/Beneficiary

IP/Beneficiary Employer IP/Beneficiary Employer Employer Employer IP/Beneficiary

New Amendment passed by parliament on 24th May 2010 (Gazette Notification published by Ministry of Law & Justice on 1st June 2010) FOLLOWING AMENDMENTS WILL BE EFFECTIVE FROM 1ST JUNE 2010

• The age limit of the dependants has been enhanced from 18 to 25 for the purpose of dependants‘ benefit. It will benefit large number of workers. •

It extended social security benefits to those apprentices who are covered by Standing Orders and also to those trainees whose training is extended to misuse exemption granted to apprentice from provisions of the ESI Act.

• The definition of *Factory, under Section 2(12) has been amended to facilitate coverage of smaller factories and cover all factories which employ 10 or more persons whether these are run by power or without power. • DG-ESIC is being made Chairman of Medical Benefit Council to improve quality of medical benefits. • It has added the benefit for workers for the accidents happening while commuting to the place of work and vice versa; • The exemptions shall be granted only prospectively as the ESIC already has made provision of infrastructure to provide service to the IPs for the past period • The procedure for determination of contribution has been streamlined to avoid harassment of employers as the Inspectors now no more to inspect the books of accounts of the establishment beyond five years as under present system of unlimited period. • It extended medical treatment to those who retire under Voluntary Retirement Scheme or take premature retirement • U/s. 45AA of ESI Act:After section 45A of the principal Act, the following section shall be inserted namely; A) 45AA. If an employer is not satisfied with the order referred to ain section 45A, he may prefer an appeal to an appellate authority as may be provided by regulation, within sixty days of the date of such order after depositing twenty – five percent, of the contribution so ordered or the contribution as per his own calculation, whichever is higher, with the Corporation B) Provided that if the employer finally succeeds in the appeal, the Corporation shall refund such deposit to the employer together with such interest as may be specified in the regulation.

Project Pehchan (Biometric Cards) • All Insured Persons will be issued with two magnetic cards, one for the Insured persons & the other for family members • Central database will be created with demographic and biometric details of Insured persons and their families. • Insured Persons and their family members can avail treatment in any ESI Hospital or dispensary across India. • Biometric details (finger prints) to verify and authenticate Insured Persons and their families through card swipe. 27

• Employers can submit their Return of Contribution online • Employers can collect information on employees‘ benefit availed by respective employees online. • One time registration. Employees will carry forward with same set of cards every time they change employment. • Duplication of enrolment can be avoided • ESI Corporation has tied up with several Private Hospital in various state/Region for Super Speciality treatment • 10 digit Insurance Number should be shown in RC form No 5. • 17 Digit New ESI Code Number should be shown in all the correspondence as well as in Forms and returns.

28

Source: ESI ANNUAL REPORT 2011-2012

29

System Generated Challans As you may be aware that the IT Roll Out is going to be implemented in all the regions as well as hospitals in a short-while for which communication will be issued by ESI department. Collection of contribution from employers and their accounting will undergo a vast change once the system is fully computerized. All payments and contributions into the ESIC account will be through challans generated through system. The existing system, whereby challans are filled in by the employers/payers and presented before the bank along with the payments will become a thing of the past. The employer intending to make the payments are required to generate a challan form through ESI portal/module from the data base after entering the requisite details of additions and deductions. Due amount will be calculated by the system itself and after entering the amount to be paid, a print out shall be taken. ESI will designate just one or two SBI branches in each region/SROs which alone will accept the payments through conventional challans and all other branches will accept payments through system generated challans. this is being allowed to avoid any inconvenience to the employers as it may be difficult for the employers to suddenly switch over to the new system and at the same time it will give little amount of pressure to the employers to adhere to the new system. For system generated challans, the following data are required to be filled in the format (available on ESI website) and after filling the required information a challan can be generated through system which is required to deposit the contributions with SBI Branch. User ID and Password has already been circulated by ESI dept. to individual employers separately. [If you have not received the same, you are requested to prepare authority letter, to collect the same from branch office of ESI). The requisite data format is enclosed herewith for your reference and records. Important No challan will be generated unless and until the data which are required for generation of challan is complete in all respects. (w.e.f. 1st April 2011) Filling of declaration forms/monthly returns / temporary insurance card / biometric card etc. As mentioned above about system generated challans and payments, similarly the personal details of employees have to be done through ESI portal/module only. The requisite data format is enclosed herewith for your reference and records. In order to obviate duplication of insurance number, please ensure to collect details of the previous employment of candidate and his insurance number also. (Please ask for any documentary proof for insurance number) Please note that it is in the interest of employee to give previous details of insurance number; if you generate data for new number and at a later stage if it is found to be at variance at the time of bio metric card procedure then the employees and family members may not be able to get benefits from the ESI scheme. 30

The requisite data format which is enclosed herewith has to be filled in by the employee concerned on the very first day / date of his/her working so as to register the concerned employee with the esi dept. from the day one only. Presently through online feeding of details of employee concerned, the system will automatically generate tic (temporary insurance card) which should affix employer‘s address and signatory and signed by authorized person of the employer and employee concerned and after that employee concerned and his/her family members has to do the bio metric card procedure on or before the date which is printed on his/her temporary insurance card. Advantages for computerized scenario of ESI to employee:Once the ESI department fully upload the system at hospitals/dispensaries/doctors/ESI branches/ private hospitals/ call centre etc the insured person/insured woman is no more required to visit the ESI office for any things, such as the cash payments/ maternity benefits / accident benefits / reimbursement etc will be directly credited into the bank account of employee concerned. Employee/family of employee can avail through his bio metric card medical benefits all over India with ESI Hospitals/Dispensaries/Pvt. Hospitals (with whom ESI has and may tied up)

1) 2) 3) 4)

Advantages for computerized scenario of ESI to employer:Day to day information about the ESI on computer. No need to send employee at ESI branch for any clerical work. No need to file six monthly returns. No need to maintain 32-Register / accident register and any other register which are presently generated. You will find data after putting user id and password in the insured person details which is incomplete or some employees‘ data may not be available, in such cases the employer is requested to check and correct the same before going for monthly payment option. Lastly and most important for doing all the system generated things it is necessary to have a computer/laptop with internet connection and printer. Recent Court Judgement:-

1) Order of attachment of property of Director of company for ESI contribution was held without jurisdiction:The petitioner was formerly a director of the company known as Kiran Fashions Pvt. Ltd of which her husband was yet another director. There was one more company known as Kiran Creations Pvt. Ltd. of which the petitioner‘s husband was one of the Directors. The respondent passed an order under sec. 45-A of the ESI Act against both the companies for payment of certain amounts towards ESI contributions. The said orders became final since they were not challenged by the respective companies. Subsequently recovery certificates were also issued in order to recover the said amount. Pursuant to the recovery certificate, the seconds respondent passed the impugned order of attachment of the property of the petitioner. Feeling aggrieved thereby the petitioner challenged the same by filling a writ petition in the High Court.

31

-

The only question before the High court was whether recovery of dues from the company, the property of directors, both past and present, could be attached? The high court observed that if the contributions have not been paid the same can be recovered from the assets of the company and not from the personal assets of the directors by making them personally liable. Directors cannot be treated ipso facto as owners. It was therefore held that the impugned order was without jurisdiction. Hence it was quashed and set aside. H.C.Mad, LLJ III 201 P. 647, Rani K. Lulla v. Employees‘ State Insurance corpn. Chennai.

2) When the death of the employee was due to tuberculosis of lungs, it was held to be occupational disease, the dependents are entitled to get the dependency benefit under the ESI Act, 1948. The deceased was working in Subhlaxmi Mills and he died on 17-08-1991 due to chest disease in a hospital. The appellants are the legal heirs of the deceased and they filed an application in the ESI court for getting the dependency benefit. But it was dismissed by the ESI court. Hence they filed an appeal in the High court. It was contended on behalf of the appellants that it was proved beyond reasonable doubt before the ESI court that tuberculosis was sustained by the deceased workman as the cotton and dust went into the lungs of the deceased while filling up bobbins during the course of employment in Subhlaxmi Mills. It was further pointed out that the room in which the deceased workman was working did not have a window but only a door and in view of the unhygienic working condition prevailed at that place of employment. The deceased workman became a patient of tuberculosis. The high court referred to the evidence of the doctor who deposed that if a person working in a room where dust and cotton are spread, there are chances of tuberculosis of lungs beings suffered by the person and due to infection of the same cardiac failure can also occur. It appears that doctor further stated that the deceased workman was suffering from lung tuberculosis but the disease shown in the schedule III part – C Sl. No. 3 was different. The High court referred to the said schedule which read; Sr. No. bronchopulmonary diseases caused by cotton, flax hemp and sisal (Byssinosis) All work involving exposure to the risk concerned.

-

The high court held that the injury caused to the deceased workman would fall at sr. No.3 of part – c of III schedule of the act and merely because the doctor said that the said provision was not applicable in the present case, it cannot be said that it was not applicable. The High court held that there was miscarriage of justice. Consequently the high court allowed the appeal and set aside the order of the ESI court. It was held that the appellants were entitled to get compensation as per the provisions of the ESI act with interest at the rate of 9% from the date of the application till realization. H.C. Guj. CLR I 2011 P. 845, Radhaben Gopalbhai & Ors. V. ESIC Summary:The Employees‘ State Insurance Act applies to all power using factories employing 10 or more persons and to all non-power using factories employing 20 or more persons. Persons whose remuneration (including overtime) does not exceed Rs. 15000/- a month are covered under the Act. The employees‘ State Insurance Scheme provides for sickness and extended sickness benefit, maternity benefit, disablement benefit, dependants‘ benefit, medical benefit, funeral benefit, and so on. The scheme is administered by a corporate body called the Employees‘ State Insurance 32

Corporation. The chief executive officer of the corporation is its Director General, who is also an ex-officio member of the corporation and its standing committee. The ESIC has set-up a network of regional and local offices all over the country for implementation of the scheme.

33

ESI Dispensaries in Maharashtra Sr. No 1.

Name of Dispensary Andheri

Address Med. Offr. Incharge, E. S. I. Dispensary, ESI Hospital, Central Road, Andheri, Mumbai – 400 093 Med. Offr. Incharge, E. S. I. Dispensary, Dr. Joshi Hospital Bldg, Plot No. 70, Opp. Ambedkar Udyan, Chembur, Mumbai – 400 071 Med. Offr. Incharge, E. S. I. Dispensary, J. J. Hospital Compound, Byculla, Mumabi – 400 008 Med. Offr. Incharge, E. S. I. Dispensary, Rukuminibai Muncipal, Kalyan, Near Kalyan Rly. Stn, Med. Offr. Incharge, E. S. I. Dispensary, ESIS Hospital, Charkop Industrial Estate, Charkop, Kandivali (W), Mum67 Med. Offr. Incharge, E. S. I. Dispensary, 109, Mahindra Ind. Estate, Road No. 29, Opp Nehru Garden, Sion (E), Mum- 22 Med. Offr, Incharge, ESI Dispensary, E. S. I. Hospital, Lal Bahadur Shashtri Marg, Mulund (W), Mumbai – 400 080

Phone No. 28367206

2.

Chembur

25583906

3.

J. J. Hospital

4.

Kalyan

5.

Kandivali

6. 7.

Mahindra Industrial Mulund

8.

Malad

Med. Offr, Incharge, ESI Dispensary, S. K. Patil Arogyadham, Datari Road, Malad (E), Mumbai – 400 064

26894381

9.

Parel

24132575

10.

Ulhasnagar

11.

Vashi

Med. Offr. Incharge, E. S. I. Dispensary, M. G. M. Hospital, Parel, Mumbai- 400 012 Med. Offr. Incharge, E. S. I. Dispensary, ESI Hospital, Near Central Hospital, Camp No.3, Ulhasnagar. Med. Offr. Incharge, E. S. I. Dispensary, ESI Hospital, Vashi, Sector No. 5, Navi Mumbai – 400 703

12.

Vile Parel

Med. Offr. Incharge, E. S. I. Dispensary, S. V. Road, Behind Nanavati Hospital, Sarojini Naidu Road, Vileparle (W), Mumbai.

26126593

13.

Wagle Estate

25823551

14

Worli

15

Rabale

16

Kandivali

17

Akola-I

Med. Offr. Incharge, E. S. I. Dispensary, ESI Hospital, Wagle Estate, Thane – 400 607 Med. Offr. Incharge, E. S. I. Dispensary, ESI Hospital, Dr. Anne Besant Road, Worli, Mumbai – 400 018 Med. Offr. Incharge, E. S. I. Dispensary, Canteen Building, Ex. Sharad Kelkar Samuhik Suvidha Camp, MIDC, Rabale, New Mumbai Med. Offr. Incharge, E. S. I. Dispensary, ESI Hospital, Akruli Road, Kandivali (E), Mumbai – 400 101 Medical Officer Incharge, ESI Dispensary, Bahel Building, Ramdaspeth, Akola 444001

18

Akola - II

Medical Officer Incharge, ESI Dispensary, Shri Lalpande Building, Bhagirath Wadi, Harihar Peth, Akola

2435742

19

Akola - III

2414574

20

Amravati

21

Aurangabad No. I

Medical Officer Incharge, ESI Dispensary, Vinayak P. Kutaskan House, Akola Medical Officer Incharge, ESI Dispensary, Masjid Road, Near Khaparse Garden, Amravati 444601 Medical Officer Incharge, ESI Dispensary, Osmanpura, Mahaveer Nagar, Peer Bazar Road, Aurangabad 444601

23716450 0251-316388 2887764/65

24074873 25645520-24

0251-2546733 27821405

24933142/3, 24932390/2428 27693765

28877501 2433729

0721-2673655 2331686

34

22

23

24

25 26

27

28

29

30

31 32 33 34 35 36

Aurangabad No.I

Medical Officer Incharge, Esi Dispensary, Khadekeshwar, Near Mule Pathology, Vyavhare Building, Aurangabad 431005 Aurangabad Medical Officer Incharge, ESI Dispensary, No. III Plot No. 10 N-11, Near Mayuri Hotel, HUDCO, Asurangabad- 431 003 Aurangabad Medical Officer Incharge, ESI Dispensary, No. IV Chikalthana, Opp. MSRTC Workshop, MIDC Chikalthana, Aurangabad 431 210 Bajeriya Medical Officer Incharge, ESI Dispensary, Bhankheda, B/H Ice Factory,Bajeriya, NAGPUR Chandrapur Medical Officer Incharge, ESI Dispensary, C/O Smt. Malinibai Building, Ramnagar, Civil Line, Chandrapur Hinganghat Medical Officer Incharge, ESI Dispensary, H.No. 160, Chandrachhaya, Yeshwant Nagar, Gandhi Ward, Hinganghat 442301 Gandhi Medical Officer Incharge, ESI Dispensary, C/O Smt C.C. Nagar Ghavghave's Building, Plot No. 354, Gandhi Nagar, Nagpur Ganeshpeth Medical Officer Incharge, ESI Dispensary, Near Vidarbha Co. Operative Marketing Society, Ganeshpeth, Nagpur-440018 Industrial Medical Officer Incharge, ESI Dispensary, Area MIDC Common Services, Centre Building, Industrial Area, Hingana Road, Nagpur Kukade Medical Officer Incharge, ESI Dispensary, Layout Wanjari Nagar, Near Empress Mills Qtrs, Nagpur Kamptee Medical Officer Incharge, ESI Dispensary, Kamptee Distt. Nagpur Mahal Medical Officer Incharge, ESI Dispensary, Dakshnimurthi Chowk, Mahal, Nagpur Nandawan Medical Officer Incharge, ESI Dispensary, Nandawan Layout, Nagpur New Mount Medical Officer Incharge, ESI Dispensary, Road, Shri More's Building, Nagpur New Medical Officer Incharge, ESI Dispensary, Subhedar C/O Abdul Rahim Khan, Dattatraya Nagar, Nagpur

2321240

2485820

2482444

2728411 07172-254403

07153-244071

2726197

07104-237396

2749197 288597 2724359 2746432 2746184 2746184

Layout

37 38 39 40 41

Nachangaon Road, Old Bagadganj Pachpaoli

Medical Officer Incharge, ESI Dispensary, Khurana Building, Nachangaon Road, Pulgaon Distt. Wardha Medical Officer Incharge, ESI Dispensary, Kapase Chowk, Bagadganj, Nagpur Medical Officer Incharge, ESI Dispensary, Near Kamal Talkies Chowk, Pachpaoli, Nagpur Rambagh Medical Officer Incharge, ESI Dispensary, Near Medical College Square, Rambagh, Nagpur Somwaripeth Medical Officer Incharge, ESI Dispensary, Nurses Hostel, Somwaripeth, Nagpur

07158-282042 2764311 2640271 2744785 2744785

35

42

45 46 47 48

Somesh Colony Tarasingh Market Wadi Nagpur Ambad Amalner Bhosari Barshi

49

Chalisgaon

50

Chinchwad

51

CIDCO

52

Dhule I

53 54 55

Gharpure Ghat Hadapsar Ichalkaranji

56 57

Jalgaon Jalgaon Ii

58

Kupwad

59 60 61

Miraj Mpm Solapur Nagla Park

62 63

Nasik Road Rajaram Puri

64 65

Sangli Satara

66 67

Satpur Samaj Kalyan Kendra Tarabai Road

43 44

68

Medical Officer Incharge, ESI Dispensary, Laxmi Niwas Channwar Building, Behind Kala Mandir, Nanded Medical Officer Incharge, ESI Dispensary, Tarasingh Market NO. 1, Smt. Awasti's Building,Nanded Medical Officer Incharge, ESI Dispensary, Khadgaon Road, Wadi, Nagpur Medical Officer Incharge, ESI Dispensary, Ambad Medical Officer Incharge, ESI Dispensary, Amalner Medical Officer Incharge, ESI Dispensary, Bhosari Medical Officer Incharge, ESI Dispensary, Bhagwant Road, Near Ram Mandir, Barshi, DISTT. Solapur Medical Officer Incharge, ESI Dispensary, Laxmi Nagar, Chalisgaon Medical Officer Incharge, ESI Dispensary, Panchdeep Bhawan,Chinchwad, Medical Officer Incharge, ESI Dispensary, Saptashringi Chowk, CIDCO, Nasik Medical Officer Incharge, ESI Dispensary, Station Road, Near Post Office, Dhule Medical Officer Incharge, ESI Dispensary, Near Bhagwan Prasad Ashram, Gharpure Ghat,Nasik Medical Officer Incharge,ESI Dispensary, Hadapsar, Pune Medical Officer Incharge, ESI Dispensary, Ichalkaranji Distt. Kolhapur Medical Officer Incharge, ESI Dispensary, Jalgaon Medical Officer Incharge, ESI Dispensary, Old Mehrun Road, MIDC, Jalgaon Medical Officer Incharge, ESI Dispensary, Kupwad Sangli Medical Officer Incharge, ESI Dispensary, Miraj Medical Officer Incharge, ESI Dispensary, Solapur Medical Officer Incharge, ESI Dispensary, Nagla Park Kolhapur Medical Officer Incharge, ESI Dispensary, Nasik Medical Officer Incharge, ESI Dispensary, Rajaram Puri, Kolhapur Medical Officer Incharge, ESI Dispensary, Sangli Medical Officer Incharge, ESI Dispensary, Satara

242427 240308 07104-223283 0253-2383470 02587-223528 020-27121036

02589-222229 020-27470020 0253-2392601 02562-2211219 0253-2575960 020-26999178 0230-2437302 0257-2229283 0257-2211219 0233-2346728 0233-2222604 0217-2722899 0231-2653197 0253-2463710 0231-269266 0233-2377636 02162-239533

Medical Officer Incharge, ESI Dispensary, Satpur Medical Officer Incharge, ESI Dispensary, Samaj Kalyan Kendra, Solapur

0253-2363906 0217-2722435

Medical Officer Incharge, ESI Dispensary, Tarabai Road, Kolhapur

0231-2622406

36

ESI Hospitals in Maharashtra Sr. No 1.

2. 3.

4. 5. 6.

7.

8.

9.

Name of Hospital

Address

Andheri

Med. Supdt. E. S. I. Hospital, Central Road, Near Marol Bus Depot, Andheri (E), Mumbai – 400 093 Kandivali Med. Supdt. E. S. I. Hospital, Arkuli Road, Kandivali (E), Mumbai – 400 101 Mahatma Gandhi Med. Supdt. E. S. I. Hospital, Mahatma Memorial Hospital Gandhi Memorial Hospital, Dr. S. S. Rao Road, Parel, Mumbai – 400 012 Mulund Med. Supdt. E. S. I. Hospital, Lal Bahadur shashtri Marg, Mulund (W), Mum – 400080 Thane Med. Supdt. E. S. I. Hospital, Wagle Estate, Road No. 33, Thane – 400 604 Ulhasnagar Med. Offr. Incharge, E. S. I. Dispensary, ESI Hospital, Near Central Hospital, Camp No.3, Ulhasnagar, Dist: Thane Vashi Med. Offr. Incharge, E. S. I. Dispensary, ESI Hospital, Vashi, Sector No. 5, Navi Mumbai – 400 703 Worli Med. Offr. Incharge, E. S. I. Dispensary, ESI Hospital, Dr. Anne Besant Road, Worli, Mumbai – 400 018 Pune (Aundh Medical Supdt ESI Hospital Aundh Camp Camp) Pune- 411 007.

10.

Nasik

11. 12.

Solapur Chinchwad (Pune)

13

Somwaripeth Nagpur

14

Aurangabad

Medical Supdt, ESI Hospital, Trimbak Road, Satpur, Nasik- 422 007 Medical Supdt, ESI Hospital, Solapur- 413 003 Medical Supdt, ESI Hospital cum ODC, Block D-3,Survey S.No. 130, Plot No. 9,10,11 Mohan Nagar, Chinchwad, Pune 411 019 Medical Supdt, ESI Hospital, Opp. Nurses Hostel, Manewada Road, Somwaripeth, Nagpur - 440009. Medical Supdt, ESI Hospital, P-1, CIDCO, Naregaon Road, Aurangabad - 431 003.

Phone No. 28203266(D), 28367206 (PBX)

/

2877501 (D), 28877764 (PBX) 24132575 (PBX) 24132581 /82 (PBX) 24130035 (D) 25645520-24 (PBX) 25600696 (D) 25823551 (D) 25323434 (PBX) 0251-2546733 (PBX) 2701222 (D)

/

27821405 (D) 27821432 (ADM)

/

/ / / / /

24933142/364, (D) 24932390/2428 (PBX) 02027280985/27282223 27283104 0253-2351945/2351045 0217-2601747/2600560 020-7462514 020-7462486 2744767

2480465 2480466

37

Super Specialty Hospitals tide-up in Mumbai Sr. No 1. 2. 3 4 5 6 7 8 9 10 11 12 13 14 15

Name of Hospital Balaji Hospital Zynova Heart Hospital K. E. M. Hospital Fortis Hospital Joy Hospital Suvarna Sethia Hospital Suvarna Hospital Kohinoor Hospital Hiranandani Hospital Life Line Hospital Terna Sahyadri Hospital Suraj Hospital Sushrusha Heart Care Thunga Hospital Magnum Diganostic Centre

Location Byculla Ghatkopar Parel Mulund Chembur Chembur Malad Kurla Vashi, Navi Mumbai Panvel Nerul Navi Mumbai Sanpada, Navi Mumbai Nerul, Navi Mumbai Mira Road Sion

There are more than 255 super speciality hospitals tide up all over India, complete list of which can be seen at ESI Website:- www.esic.nic.in To avail Super Speciality Treatment minimum conditions required:1) For IP :- 3 months Employment with Minimum 39 days Contribution payable. 2) For Family members:- 6 months Employment with Minimum 78 days Contribution payable

38

TIE - U P HOSPITALS FON. SUPE R. PEClALITY CMAH ARASHTR A)

·a me of Hospilal

1

I

I. l llalaji llospita1----· , A \ ulti -Spccia l ty Hospital

rcI

Pt·occdurc

:V1umb01- as confmement expenses. Q. I, being a member of ESI Scheme, e) Supervision & control (persons managing) understand that my dependents are entitled f) Functional integrity(integrated whole, part & to the sickness/medical benefits. If so, upto parcel of main unit, kprimary & dominant what age? What will be the position for ... a\,;tivity,subsidiary, minor, incidental) availing medical benefits when they are g) Unity of purpose (production and business, independent and earning their own inter-related business, similarity ofbusinessdesign or even parallel or co-ordinate activity livelihood? Ganga Ram, Noida A. Your children are entitled to medical intended to achieve a common object) There are two other criterias which can also benefits, not sickness benefit, upto the age of2_; years. But once the child starts earning, he/she assume importance i.e. · is no more dependent and will not be eligible for (i) Service conditions of workmen (Rules medical benefits. applicable, employment contract if any etc.) Q. In our premises I am manufacturing (ii) General (Books of account, similarity of auto parts employing 7 employees. My son nomenclature, common documents, letter has also started his business to manufacture heads, telephone numbers etc.) amplifiers. He is employing 6 employees. All the factors are not necessarily to be Whether the ESI will be applicable? I am considered. Relevance of each factor has to be also anxious to know as to what are the examined.

52

Recent Court Judgement:1) Section 45 – A – (Order of attachment of property of Director of company for ESI contribution due by company was held without jurisdiction) The petitioner was formerly a Director of the company known as Kiran Fashions Pvt Ltd. Of which her husband was yet another Director. There was one more company known as Kiran creations Pvt Ltd. Of which the petitioner‘s husband was one of the Directors. The respondent passed an order under Sec. 45 – a of the ESI Act against both the companies for payment of certain amounts towards ESI Contributions. The said orders became final since they were not challenged by the respective companies. Subsequently recovery certificates were also issued in order to recover the said amount. Pursuant to the recovery certificate, the second respondent passed the impugned order of attachment of the property of the petitioner. Feeling aggrieved thereby the petitioner challenged the same by filing a writ petition in the High Court. The Only question before the High Court was whether for recovery of dues from the company, the property of Directors, both past and present, could be attached? The High Court observed that if the contributions have not been paid the same can be recovered from the assets of the company and not from the personal assets of the Directors by making them personally liable. Directors cannot be treated ipso facto as owners. It was therefore held that the impugned order was without jurisdiction. Hence it was quashed and set aside. -H.C. Mad, LLJ III 2011 P. 647, Rani K. Lulla v. Employees‘ State Insurance Corpn., Chennai. 2) Section 52-A- Schedule III Part – C, SL.No.3 – (When the death of the employee was due to tuberculosis of lungs, it was held to be occupational diseases, the dependents are entitled to get the dependency benefit under the ESIC Act, 1948.) The deceased was working in Subhlaxmi Mills and he died on 17-08-1991 due to chest disease in a hospital. The appellants are the legal heirs of the deceased and they filed an application in the ESI court for getting the dependency benefits. But it was dismissed by the ESI court. Hence they filed an appeal in the High Court. It was contended on behalf of the appellants that it was proved beyond reasonable doubt before the ESI court that tuberculosis was sustained by the deceased workman as the cotton and dust went into the lungs of the deceased while filling up bobbins during the course of employment in Subhlaxmi Mills. It was further pointed out that the room in which the deceased workman was working did not have a window but only a door and in view of the unhygienic working conditions prevailed at that place of employment, the deceased workman became a patient of tuberculosis. The High Court referred to the evidence of the doctor who deposed that if a person working in a room where dust and cotton are spread, there are chances of tuberculosis of lings being suffered by the person and due to infection of the same cardiac failure can also occur, it appears that the doctor further stated that the deceased workman was suffering from lung tuberculosis but the disease shown in the Schedule III Part – C Sl. No. 3 was different. The High Court referred to the said scheduled which reads:-

53

Sr. No. 3. Bronchopulmonary diseases caused by cotton, flax hemp and sisal (Byssinosis) All working involving exposure to the risk concerned. The High Court held that the injury caused to the deceased workman would fall at Sr.No.3 of Part –C of III schedule of the act and merely because the doctor said that the said provision was not applicable in the present case, it cannot be said that it was not applicable. The High Court held that there was miscarriage of justice. Consequently the High Court allowed the appeal and set aside the order of ESI court. It was held that the appellants were entitled to get compensation as per the provisions of the ESI Act with the interest at the rate of 9% from the date of the application till realization. H.C.Guj. CLR 2011 P. 845, Radhaben Gopalbhai & Ors. V. ESIC. Discu ss ion o n the iss ue of ―Autho rized Representative‖ s pecia ll y appearing bef o re the E.S.I.C Authorities and Provident Fund Authorities. (By: S. K. Gupta, Advocate, Supreme Court) Either Assistant Director or Dy. Director or Regional Director, who have been conducting inquiry against the establishments or employers under sec. 45 – A of the Employees‘ State Insurance Act, 1948 for determination of amount of contribution payable in respect of the employees of that factory or establishment. The same way, the Assistant Provident Fund Commissioner or Regional Provident Fund Commissioner, who have been doing inquiry against the establishments or employers under sec. 7A of the Employees‘ Provident Fund and Misc. Provisions Act, 1952. There is no dispute at any stage that the proceedings which are conducted by them are called *quasijudicial proceedings, and the authorities, who have been conducting the proceedings, are called *quasi-judicial authorities, and therefore, these authorizes had to follow principles of natural justice. When the establishment / employer received summon or so called notice from the ESIC or the EPFO, then most of the time, the language written by the ESIC or EPFO in the notice or summon that *you are hereby summoned to appear before me either in person or through an authorized the day at AM/PM,. representative on Not only in the ESIC or the EPFO, in the Income Tax authorities or Sales Tax authorities or any other quasi – judicial authorities, the many authorized representative, who are not advocate, have been appearing before the quasi – judicial authorities during quasi – judicial proceedings. So, dictionary meaning of *Authorized Representative, means a person, who represent any other person, on payment of any fee or remuneration before any tribunal or authority constituted or appointed by or under any law for time being in force. Since, the Employees‘ Provident Fund and Misc, Act, 1952 or the Employees‘ State Insurance Act, 1948 have no such provision like Industrial Dispute Act, 1947 i.e. section 36 Representation of parties were discussed recently by the Bombay High Court in the matter of Maharashtra Employees‘ Union Vs. M.K. Metal Industrial and others 2010 LLR 936 in reference of the Industrial Dispute Act, 1947. If any Assistant Provident Fund Commissioner or Regional Provident Fund Commissioner or Assistant Director or Dy. Director or Regional Director refuses to record the appearance of any authorised representative during 7A proceedings or 45A proceedings or any recovery proceedings it shall be treated violation of principles of natural justices. To my mind, I suggest that the learned consultants should file the *authority letter or powers of attorney, before the quasi – judicial authorities and once, the quasi judicial authority takes the so54

called *authority letter, on record or in the proceedings, then subsequently, the authority cannot dis-allow to appear in the proceedings and if at any stage, it occurs, then it is violation of principles of natural justice. There is no law or provisions under the Act, 1952 or Act 1948, that being a PF Consultants or Labour Laws Consultants or ESIC Consultants, are not entitled to be represented in the proceedings as *authorised representative,. In brief, no bar, for the sake of convenience, proposed draft of the authority letter is as under:-

55

NAME OF THE AUTHORITY AND THEIR DESIGNATION AND ADDRESS PF Code No:

(Name of the Establishment and Address)

ESIC Code No:

(Name of the Establishment and Address)

AUTHORITY LETTER I,

S/o.

working in the establishment as

do

hereby appoint Mr. (Name of Authorised Person) to my/our authorised representative in the above noted quasi – judicial proceedings whose signature and acceptance thereof are given here under. I/ we hereby authorised him/them as under:-

1) To act, appear and plead 2) To sign, file and verify the day to day proceedings. 3) To file and take back documents 4) To admit and/or deny the documents of the opposite party. 5) To cross examine the Enforcement Officer. 6) To ask the Enquiry Report or any other documents during proceedings or thereafter. In witness whereof; I been understood by me on

do hereby set my hand to above contents of which have the day of

.

Accepted subject to the terms of fees. Name of Authorised Representative. Address of Office:Date: / /20 Place:-

Signature of Employer (Seal)

56

OptionalInspections:· 3. In following cases, the inspections would be generated through computer usingpre-decidednumber tables takingInto account the following factors:.

Inspection Scheme for Employees' State Insurance Corporation

1) Dropincontribution by 30%andabovecompared to previous contribution period (over a period of six months)[30%] 2) Drop innumber of covered employees by 30% and above compared toprevious contribution period (over aperiod of six months)[30%]

Objective:TheInspectionScheme aims to achieve 3) Security/rnanpc7Ner agenciesemployingmore than the objective of simplifying business regulations and bring 250 employees[30%] in transparency and accountability in labour inspections.It 4) Any other not falling in above categories [10%] . envisages objectixe criteria for selection of units for 4 Methodology: inspection. 1. Employers to feed master data and periodical returns. Criteria o1Inspections

lllndatory Inspections:·

2. Inspectors to feed detailedinspectionreport. 3. Inspectors to feed accident returns.

1. In the following cases, the inspections will be mandatory for allunits:4.Computer programme tobeprovidedby NIC taking into account the cr eria. i) Allnewcovered/registered units 5.Computerizedgeneration of inspectionprogramma iO Units which have been defautters for six months andcommunicationto theinspectingstaff keepingin view iii) Units for which closure request has been theconfidentiality aspects. received iv) Units wherenoinspection was carried out in last 5General lnstJuctJa1s: 3 years (as ESIC has time bar of 5 years for claiming dues)

1. The inspecting officer has tomaintainregisters of

the establishments. 2.He has to record the statement of workerspresent 2. ESIC would set up a Central Analysis and

IntelligenceUnit (CAIU) for collectingand analysing field at the time of inspection. level data for a transparent and accountable labour 3. In case of contradiction in the statements of inspection system.The cases forwarded throughCentral er's,worker and entries intherecord, the inspecting Analysis & Intelligence Unit (CAIU) of ESICwill be based on data and evidence. ESIC will formulate an objective officer willseize therelevant records. methodology for selectioncriteria of thecases by the CAlU 4. Inspection report should always be prepared on keeping in view its priorities and the provisions of ILO C· the work-spot by the inspecting officer himself and 81. handover to the employer's representative. 5. The inspection should be carried out during the normalworking hours.

6. The inspectionreport is being simplifiedand under review/revision. 7. The inspection report should be uploaded wtthin 3 days by the inspector. 8.1ncase of violations by the inspecting staff,entries are recOI'ded In APAR. (Ajay Malik) Under Secretary to theGovt of India New Delhi, Dated the 21st June,2014

57

58

59

60

61

62

Notifications issued by different State / UT Governments Under Section 1(5) of ESI Act, 1948 reducing threshold of coverage to 10 persons in their respective States / UTs. CONTENTS Sr. No.

Name of State Govt. / UT

1 2

Andhra Pradesh

3 4

Bihar

Tripura

Chhattisgarh

5 Gujarat 6 7 8

Haryana Jammu & Kashmir

9 10 11

Karnataka Kerala

12 13 14 15 16 17 18

Jharkhand

New Delhi Orissa Pondicherry Punjab Rajasthan Uttrakhand West Bengal Chhattisgarh

Gazette Notification No. & Date 178, Part-1, Extraordinary dated 21/04/2011 No.F.21 (71) – LAB / ENF / ESI / 08 / 5740-43 dated 20/07/2011 No. ACS-01 / Ni-73 / 2010-65 dated 19/01/2011 No.12, F-10-28/2010/16 dated 4/3/2011* Vol. LIII, Extraordinary No. GHR – 2012-04-ESI -18-2011688529-M(3) dated 3/1/2012

20

Goa

21

Tamilnadu

22

ASSAM,H.P.,U.P., & Maharashtra.

Except Medical Institutions Except Medical & Educational Institutions.

No. 10 / 162 / 2010. 5lab dated 6/9/2011 SRO 80 dated 5/3/2012 133 Extraordinary No. 1653 dated 11/2/2011 No. LD 323 LSI 2010 dated 16/3/2011 Vol. LVI SRO No.425/2011 dated 28/6/2011 501, Extraordinary Part-II – Section-3-subsection (ii) S.O.616 (E) dated 23/3/2011 No. SS-II-SC-42/2011/7752/LE dated 24/8/2011 25 No. 7237 / Lab / K / 2010 dated 2/6/2011

Except Medical institutions.

Extraordinary No. 8/50/10-4HB4 / 2192 dated 14/7/2011. Extraordinary, S.O. 546 dated 7/1/2011 Part-12, No.31, 641. VII /11-479 (ESI)/2003 dated 7/6/2011 Extraordinary, 10/2/2011, No.131-SS/2H-6/05 dated 1/2/2011. F 10-4/2011 / 16 dated 25/5/2011

19 Madhya Pradesh

Remarks

F No. 9-1-2004 – B-XVI dated 19/5/2011 No.

Dated 5.09.2012

No.II(2)/LE/52/2013 Dated: 2nd January, 2013

Medical Institutions Educational & Medical Institutions Expect education and Medical institutions Expect education and Medical institutions

Awaited.

63

64

65

• fSIC is issuing tm oovh·tech cards.Onefor theinsured personandanotlorhisfamilymembers. • In future,our whole family can avail fSICs complete medical facilities an1rwhere, an ime with fSIC PehchanCard. IIn theabove camp,our and your lami's biometric details viz.finger Print Photograph etc. will

be taen in order to ensure biometric securi. So ensure, no one from your family is leh out, eve body comes to thecamp. Morrt SIJNI K lll

Advantage ESICs New Pehchan Card

DO 8 11·19T' 213S5, Gali No.g P&'l 1Jl Wts\Pale N191 1 11UDI1hi·1100ill

t The facility to avail treatment in any of the ESI Dispensaries I Hospitals across the country t Pehchan Card valid for life, as per rules t No need of getting Pehchan Card again on change of employment or cha nge of place of wor ng t More convenience for Insured Persons • Hassle free amendment in your and your faMily members description t

In f uture, Insured Person's Medical Histoto be available online, with eve' ESIC imtitution t faIdentification of lnsJred person and fam1ly members

For further details, please contact your employer or the nearestE IC office

mRr

Gftarr

• Employees'tate Insurance Corporation Paoc1oeepBllm c..G.M!], ewlleh.' tu 002 \VilisWNN.e ;Jic.i·

66

67

PAYMENT OF WAGES ACT, 1936 The payment of wages act, 1936, is one of the old enactments dealing with employer-employee relationship. But as the name of the Act indicates, it deals with a very limited aspect of that relationship inasmuch as it regulates only the payment of wages to certain persons employed in industry. The limited purpose of the Act is to ensure prompt and full payment of wages to persons employed in industry. Objective:The main objective of the Act is to avoid unnecessary delay in the payment of wages and to prevent unauthorised deduction from the wages. To regulates the payment of wages to certain classes of employed persons. Applicability:1. Every person employed in any factory, upon any railway or through sub-contractor in a railway and a person employed in an industrial or other establishment whose wages are upto Rs. 18,000/per month are covered or protected by the Act w.e.f. 08/08/2007 2. The State Government may by notification extend the provisions to any class of person employed in any establishments or class of establishments. Deductions:The Total deductions in any wage period shall not exceed 75% of wages in case of deductions made to payment to co-operative societies and in all other cases 50 %.

1) 2)

3) 4)

5) 6)

7) 8)

Permissible Deductions:The Employer should not make any deduction from wages other than the following:Deductions from absence from duty. Fines in respect of an act or omissions which has been approved by the Government and notified at the factory or establishment. No fine should be imposed on an employee, unless he has been given an opportunity of showing cause against the fine. Deductions for damage or loss of goods or money, expressly entrusted to the employee‘s custody, not exceeding the amount of actual damage or loss caused due to his neglect or default. Deduction for house accommodation and other amenities or services as notified by the Government, provided by the employer. The housing accommodation, amenity or service should have been accepted by the employee as a term of employment or otherwise. The amount of deduction should not exceed the value of the accommodation, amenity or service provided. Deduction for recovery of advances and interest thereon shall be made in accordance with section 12 and the rules made by the state govt. Deduction for recovery of loans made from any labour welfare fund, and housing loans, along with interest thereon, shall be made in accordance with section 12A and the rules made by the State Govt. Deduction for income-tax payable by the employee Deduction required to be made by order of a court or other competent from provident fund 68

9) Deduction for payment to co-operative societies approved by the Government, or an insurance scheme of post office 10) Deductions can be made, with the written authorisation of the employee, for payment of any life insurance premium, purchase of the government securities, etc. 11) Deductions with return authorisation to Prime Ministers National Relief Fund or such other Notified Funds.

Limit of Deductions:The total amount of permissible deductions in any wage period should not exceed:a) In case where deductions are wholly or partly made for payment to co-operatives societies, 75% of wages and b) In any other case, 50 % of wages.

Claims for nonpayment of wages shall be filed before the Chief Judicial Magistrate (CJM):1) By employee himself in Form – A 2) On behalf of employee by any other person – in Form – B 3) By group of employees – in Form – C. The claim should be field in duplicate within 12 months from due date before CJM (claim authority). Penalties are provided in the act for violation. Appeal can be made against the orders of CJM to the court of small causes and district courts. Eligibility:The wages must be paid on a working day and not on a holiday. In an employment which employs less than 1000 persons In any other case

In case of employment

termination

Before expiry of seventh day.

Before the expiry of tenth day after the last day of the wages period. of Before the expiry of the second working day, after the day of his termination.

Methods of Payment of Wages:Wages must be paid in current coin or currency notes or in both and not in kind. It is however, permissible for an employer to pay wages by cheque or by crediting them in the bank account if so authorised in writing by an employed person. Benefits: - The Act prescribes for; 1. The regular and timely payment of wages (on or before 7th day or 10th day after last day of the wage period in respect of which the wages are payable) 2. Preventing unauthorised deductions being made from wages and arbitrary fines.

69

Overtime Wages not to be taken into account:Wages means contractual wages and not overtime wages. They are not to be taken into account for deciding the applicability of the act in the context of Sec.1(6) of the Act.

3) 4)

Recovery of Advances:An advance of wages shall not exceed four months wages The advance may be recovered in installments by deductions from wages spread over not more than 18 months No installment shall exceed one-third of the wages for the month The rate of interest charged for advances shall not exceed 6 ¼% per annum.

1) 2) 3) 4)

Registers to be maintained:Register of wage - Rule 5 Register of fine in Form 1 (Rule 3) Display of notice of dates of payment not less than 2 months in advance A Register of advances and recoveries in Form III (Rule 19)

1) 2)

Recent Court Judgment:1) Annual Increment:For some employees there are grades and scales of pay in the establishment and those who are in supervisory cadre get consolidated salary. The employer ordinarily gives annual increment to the workers in their scale of pay. But some year they go not get increment. The supervisors do not get increment most of the times. Are not all the employees entitled to annual increment regularly? Where there is grade and scale of pay normally the increment will have to be given regularly. There are various steps in the scale of pay and in each step the amount mentioned will have to be given as annual increment by the employer. Annual increment means the increase in the wage every year for the efficient way of performing work and recognition towards experience. Whatever is the grade and scale of pay, the employer cannot deny the annual increment and it has to be regularly given. The increment is protential wage increase. It cannot be withheld. But the employee is appointed on a consolidated salary and the employee is no fitted in any scale of pay, the employee cannot claim annual increment by way of his privilege or right. When the salary is consolidated it is the discretion of the employer to give further raise or not. Depending upon the efficiency and usefulness of the employee in the performance of work, ordinarily the employer does not deny increment in salary unless the organisation has become economically weak. 2003 – IILN – 93 – RD Rajendran V/s. KTM abdul Khadar & Ors.

70

Non Payment of wages:1) Due to tough and aggressive competition, if a company / Establishment is not in position to pay wages to workers. Can the Establishment withhold the wages of employees / workers? A. No. The Supreme Court has held that a right to carry on business is subject to compliance of constitutional obligations and, as such, financial stringencies may not be a ground for non – payment of wages to the employees.

Summary:The main purpose of the Payment of Wages Act is to ensure regular and prompt payment of wages and prevent exploitation of the wage earner by prohibiting unauthorised deductions from wages. Persons drawing less than Rs. 18,000/- per month, in respect of a wage period, are covered under the Act. The act applies to factories, railways, the construction industry, civil air transport services, motor transport services, mines, plantations, oilfields, docks, and wharfs or jetties. The act stipulates that wages must be paid within seven days from the date of expiry of the wage period in establishments employing less than one thousand persons and within ten days in establishments employing more than one thousands persons. The act lays down a list of authorised or permissible deductions and specified conditions for their imposition. It has laid down machinery for enforcement of different provisions of the act and also penalties for contravention of its provisions.

71

FORM IV

Abstract of the Payment of Wages Act, 1936, and the Rules made there under Whom the Act affects: 1. 2. 3.

The Act applies to the payment of wages to persons in this factory receiving less than Rs.1600 a month No employed person can give up by contract or agreement his rights under the Act. *Wages, means all remuneration payable to an employed person on the fulfilment of his contract of employment. − It includes bonus and any sum payable for want of a proper notice of discharge. − It excludes – a) The value of house-accommodation, supply of light, water, medical attendance, or other amenity or of any service excluded by the Central Government; b) The employer‘s contribution to a pension or provident fund; c) Travelling allowance or concession or other special expenses entailed by the employment; d) Any gratuity payable on discharge. Responsibility for and Method of Payment: 4. 5. 6.

7.

The manager of the factory is responsible for the payment under the Act of wages to persons employed under him and any contractor employing persons is responsible for payment to the persons he employs. Wage-periods shall be fixed for the payment of wages at intervals not exceeding one month. Wages shall be paid on a working day within 7 days of the end of the wage-period (or within 10 days if 1,000 or more persons are employed). The wages of a person discharged shall be paid not later than the second working day after his discharge. Payments in kind are prohibited.

Fines and Deductions: 8.

No deduction shall be made from wages except those authorized under the Act (see Paragraphs 9-15 below). 9. (1) Fines can be imposed only for such acts and omissions as the employer may, with the previous approval of the Supervisor, specify by a notice displayed at or near the main entrance of the factory and after giving the employed person an opportunity for explanation. (2) Fines – a) Shall not exceed three per cent of the wages payable to him in respect of that wage period in which fine imposed. b) Shall not be recovered by installments, or later than sixty days of the date of imposition. c) Shall be recorded in a register and applied to such purposes beneficial to the employed persons approved by the Supervisor. 10. (a) Deduction for absence from duty can be made only on account of the employed person at times when he should be working and such deductions must not exceed an amount which is in the same proportion to his wages for the wage-period at the time he was absent in that period is to the total time he should have been at work. (b) If ten or more employed persons, acting in concert, absent themselves without reasonable cause and without due notice, the deduction for absence can include wages for eight days in lieu of notice, but –

72

(1) No deduction for breaking a contract can be made from a person under 15 or a woman; (2) There must be a provision in writing which forms part of the contract of employment, requiring that a specific period of notice of intention to cease work not exceeding 15 days or the period of notice which the employer has to give to discharge a worker, must be given to the employer and that wages may be deducted in lieu of such notice; (3) The above provision must be displayed at or near the main entrance of the factory; (4) No deduction of this nature can be made until a notice that this deduction which is to be made has been posted at or near the main entrance of the factory; (5) No deduction must exceed the wages of the employed person for the period by which the notice he gives of leaving employment, is less than the notice he should given under his contract. 11. Deductions can be made for damage to or loss of goods expressly entrusted to an employed person or for loss of money for which he is required to account, where such damage or loss is due to his neglect or default. Such deduction cannot exceed the amount of the damage or loss caused and can be made only after giving the employed person an opportunity for explanation. 12. Deductions can be made, equivalent to the value thereof, for house-accommodation, amenities or services (other than tools and raw material) supplied by the employer provided these are accepted by the employed person as a part of the terms of his employment and have in the case of amenities and services been authorized by order of the Central Government. 13. (a)

Deductions can be made for the recovery of advances or for adjustment of over-payment of wages. (b) Advances made before the employment began can only be recovered from the first payment or wages for a complete wage-period but no recovery can be made of advances given for travelling expenses before employment began. (c) Advances of unearned wages can be made at the paymaster‘s discretion during employment.

14. Deductions can be made for subscription to and for repayment advances from any recognized provident fund. 15. Deductions can be made for payments to cooperative societies approved by the Central Government or to the postal insurance, subject to any conditions imposed by the Central Government. Inspections: 16. An Inspector can enter in any premises, and can exercise powers of inspection (including examination of documents and taking of evidence) as he may deem necessary for carrying out the purposes of the Act. Complaints of Deductions or Delays: 17. (a) Where irregular deductions are made from wages or delays in payment take place, an employed person can make an application in the prescribed form within 6 months to the Authority appointed by the local Government for the purpose. An application delayed beyond this period may be rejected unless sufficient cause for the delay is shown. (b) Any legal practitioner, official of a registered trade union, Inspector under the Act, or other person acting with the permission of the Authority can make the complaint on behalf of an employed person. (c) A single application may be presented by or on behalf of number of persons belonging to the same factory, the payment of whose wages has been delayed. Action by the Authority: 18. The Authority may award compensation to the employed person in addition to ordering the payment of delayed wages or the refund of illegal deductions. If a malicious or vexatious complaint is made, the Authority may impose a penalty not exceeding Rs.50 on the applicant and order that it be paid to the employer. 73

Appeal against the Authority: 19. An appeal in the prescribed form against a direction made by the Authority may be preferred within 39 days in Madras, Bombay, Calcutta, to the Court of Small Causes and elsewhere to the District Court – a. By the paymaster if the total amount directed to be paid exceeds Rs.300; b. By an employed person, if the total amount of wages withheld from him or his co-workers exceeds Rs.50; c. By a person directed to pay a penalty for a malicious or vexatious application. (A) Payment of undisbursed wages:(1) If all amounts payable to an employed person as wages could not or cannot be paid on account of his death before payment or on account of his whereabouts not being known, shall be paid to the person nominated by him in this behalf. (2) Where wages remain undisbursed because no nomination had been made by the employed person or for any reason such amounts could not be paid to the nominee of the employed person until the expiry of three years from the date the same had become payable all amounts of such undisbursed wages shall be transferred by the accounts officer to the Staff Benefit Fund before the expiry of the fifteenth day after the last day of the said period of three years. (B) Manner of dealing with deposited amounts – The amounts of undisbursed wages deposited with the Chairman Staff Benefit Fund shall be applied by him to meet the expenditure for the purpose prescribed for the Staff Benefit Fund. 20. Anyone delaying the payment of wages beyond the due date, or making any unauthorized deduction from wages is liable to a fine up to Rs.500 only if prosecuted with the sanction of the Authority or the Appellate Court. 21. The paymaster who – a. Does not fix a wage-period, or b. makes payment in kind, or c. fails to display at or near the main entrance of the factory this abstract in English and the language of the majority of the employed persons, or d. breaks certain rules made under the Act, is liable to a fine not exceeding Rs.200. A complaint to this effect can be made only by the Inspector or with his sanction.

74

DEFINITION OF WAGES UNDER VARIOUS ACT Act

Inclusion

Exclusion

Basic + D. A. / Special Except Washing Allowances & All other (where Cloth & Stitching are Employees‘ State Insurance Act, Allowances Allowances = Gross Salary provided) 1948 Basic + D. A. / Special Allowances & All other Payment of Wages Act, 1936 Allowances = Gross Salary Basic + D. A. / Special All other The Minimum Wages Act, 1948 Allowances & Allowances = Gross Salary The Payment of Bonus Act, 1965

Basic + D.A.

All other Allowances.

Payment of Gratuity act, 1972

Basic + D.A.

All other Allowances.

The Employees Provident Funds & Miscellaneous Basic + D.A. All other Allowances. Provision Act, 1952 Basic + D. A. / Special Allowances & All other Factories Act, 1948 Allowances = Gross Salary The Bombay Shops & Basic + D. A. / Special Establishment Act, 1948 Allowances & All other Allowances = Gross Salary The Mumbai Labour Welfare Basic + D. A. / Special Fund Act, 1953 Allowances & All other Allowances = Gross Salary Maharashtra Worker‘s Minimum H.R.A. Act, 1983 5%, on Basic + D. A. All other Allowances. Maharashtra Act, 1975

Profession

Tax Basic + D. A. / Special Allowances & All other Allowances = Gross Salary The Contract Labour Act, 1970 Basic + D. A. / Special Allowances & All other Allowances = Gross Salary The Maternity Benefit Act, 1961 Basic + D. A. / Special Allowances & All other Allowances = Gross Salary

75

Notice for absent from duty after completion of sanction leave or remaining absent from work without any permission / sanction from the employer.

FIRST NOTICE To:

BY REGD. A.D. Date: It is reported that you are absenting yourself with effect from without obtaining prior sanction of leave. You are directed to report for duty alongwith an explanation for your absence within three days on receipt of the notice, failing which we will draw a presumption that you are no longer interested in the employment. Signature & stamp of Employer

SECOND NOTICE To: .

BY REGD. A.D. Date:

This is in continuation to our notice-dated 29/11/2001, where in you were called upon to report for duty along with an explanation within three days. However, deposited receipt of the notice, you have failed to make compliance. It is therefore obvious that you are not interested in the employment. Before we draw a presumption to this effect, we give you this final resumption of duty within three days, failing which we will be within our rights to draw an irresistible presumption that you are no longer interested in the employment. The above notice is without prejudice to our rights for taking disciplinary action for your willful absence & when you report to us. Signature & Stamp of Employer

76

THIRD NOTICE To: .

BY REGD. A.D. Date:

This is in continuation of our notice dated 29/11/2001 &24/12/2001. We regretted to point out that you have failed to make the compliance i.e. neither you have reported for duty nor submitted any explanation. We have clearly notified to you that in case you will not make the compliance, we will draw a presumption that you are no longer interested in the employment. Accordingly, you are deemed to have abandoned the employment of your own accord W.E.F. & you are advised to settle your account & handover the charge on any working day.

Signature & Stamp of Employer

77

Maharashtra State New Minimum Wages Chari for the period from 01/07/2014 to 31/12/2014 (Basic+ Special Allowance) (FOR SELECTED INDUSTRIES) (1. Respective Special Allowance (D.A.) given after Industry at the top. 2. The Rates are·Per Month') FROM 1.7.2014 TO 31.12.2014 Rs.1876.00

ADVOCATE OR ATTORNEYS Zone I

fl

Skilled

Semi-Sk

Un-Skilled

9776.00 9376.00

9076.00 8676.00

8576.00 8176.00

Rs.2800.00

AUTOMOBILE REPAIRING Catego_ry Skilled S-5killed Un-Skilled

Zone II

Zone 111

8300.00 7900.00 7600.00

8000.00 7600.00 7300.00

7700.00 7300.00 7000.00

Rs.2913.75

Ill

Zone II

Zone Ill

8113.75 7613.75 7113.75

7913.75 7413.75 6913.75

7713.75 7213.75 6713.75

Rs.1652.00

Skilled Semi-Skilled Un-Skilled

Special Allowance

Skilled

5-Skilled

Un-Skilled

9352.00 9052.00 8852.00

8652.00 8352.00 8152.00

8152.00 7852.00 7652.00

Rs.2376.00

CARD BOARD BOXES Zone

Special Allowance

Zone I

CANTEEN & CLUBS Zone I II

Special Allowance

Zone I

BAKERIES Category Skilled 5-Skilled Un-Skilled

Special Allowance

I

7026.00 6776.00 6526.00

Ill

II

6776.00 6526.00 6276.00

Special Allowance

6526.00 6276.00 6026.00

CEMENT & CEMENT

Rs.3398.40

Zone

II

Special Allowance Ill

Skilled Semi-Skilled Un-Skilled

78

Rs.2640.00

CHEMICAL FERTILIZERS

Special Allowance

Zone

Skilled

Semi-Sk

Un-Skilled

I

8240.00 8040.00 7840.00

7740.00 7540.00 7340.00

7240.00 7040.00 6840.00

II Ill CINEMA EXHIBITION

Rs.2742.95 Multiplex

Class of Employees

Zone I

Semi-Skilled

8242.95 7742.95

Un-Skilled

7242.95

Skilled

CLOTH DYEING & PRINTING

Special Allowance

7742.95 7242.95 6742.95

Zone II

Touring talkies

7242.95 6742.95

6742.95 6242.95 5742.95

6242.95

Rs.2913.75

Special Allowance

Zone

Skilled

Semi-Sk.

Un-Skilled

I

7813.75 7513.75

7313.75 7013.75

7013.75 6713.75

II

CONSTRUCTION OF ROADS/BUILDINGS

Rs.2094.50

Zone

Semi-Sk

Skilled

Special Allowance Un-Skilled

I II

12194.50 11794.50

11494.50 11094.50

10994.50 10594.50

Ill

11394.50

10694.50

10194.50

COTTON GINNING OR COTION PRESSING

Rs.2625.00

Class of Employees

Zone I

Zone II

Zone Ill

Skilled

7825.00 7325.00 6825.00

7625.00 7125.00 6625.00

7425.00 6925.00 6425.00

Semi-Sk Un-Skilled CYCLE MECHANIC

Special Allowance

Rs.2520.00

Special Allowance

Zone

Skilled

Semi-Sk

Un-Skilled

Zone I

8020.00

7520.00

7020.00

Zone II

7520.00

7020.00

6520.00

DAIRY

Special Allowance

Rs.2750.00

Zone

Skilled

S-Skilled

Un-Skilled

I

8250.00

7750.00

7250.00

II

8000.00

7500.00

7000.00

Ill

7750.00

7250.00

6750.00

DISPENSARY

Rs.2923.30

Zone

Skilled

I II

7583.30 7183.30

7483.30 7083.30

7383.30 6983.30

Ill

6683.30

6583.30

6483.30

Semi-Sk

Special Allowance

Un-Skilled

79

DRUGS & PHARMACEUTICALS

Rs.1652.00

Zone

Skilled

I

9352.00

8652.00

8152.00

II

9052.00

8352.00

7852.00

Ill

8852.00

8152.00

7652.00

DYES & CHEMICALS

SemiSkilled

Un-Skilled

Rs.2921.45

Special Allowance

Zone

Skilled

Semi-Sk

Un-Skilled

I

7721.45

7421.45

7121.45

II

7321.45

7021.45

6721.45

Ill

6721.45

6421.45

6121.45

ENGINEERING

Rs.1652.00

Zone

Zone I

Skilled

9452.00

9252.00

8852.00

Semi-Skilled

8752.00

8552.00

8152.00

Un-Skilled

8252.00

8052.00

7652.00

EXERCISE BOOKS

Zone II

Zone II

6003.30

5803.30

5603.30

Semi-Skilled

5903.30

5703.30

5503.30

Un-Skilled

5803.30

5603.30

5403.30

Zone

Rs.3116.50 Skilled

Semi-Sk

8416.50

8166.50

7916.50

II

8216.50

7966.50

7716.50

Zone

Rs. 2520.00 Skilled

Semi-Sk

Un-Sk.

I

8020.00

7520.00

7020.00

II

7720.00

7220.00

6720.00

Ill

7420.00

6920.00

6420.00

FILM PRODUCTION

Special Allowance

UnSkilled

I

FACTORIES UNDER F.A.

Special Allowance

Zone Ill

Skilled

FOUNTAIN PENS

Special Allowance

Zone Ill

Rs.2923.30 Zone I

Special Allowance

Rs. 2880.00

Special Allowance

Special Allowance

Zone

Skilled

Semi-Sk

I

8580.00

8080.00

7580.00

II

8380.00

7880.00

7380 00

Un-Sk.

80

Highly Remote Areas Other Areas

Skilled 8255.00 7755.00

Skilled 9452.00 9252.00 8852.00

Ill

Skilled 9352.00 9052.00 8852.00

II Ill

Skilled 9352.00 9052.00 8552.00

HANDLOOM Zone I II Ill

Upto 50 looms 51 to 100 looms Above 100 looms

Semi-Sk 8752.00 8552.00 8152.00

Un-Skilled 8252.00 8052.00 7652.00 Special Allowance

Seml-sk 8652.00 8352.00 8152.00

Un-skilled 8152.00 7852.00 7652.00 Special Allowance

Rs.1652.00

HAIR CUTTING SALOON Zone I II Ill

Special Allowance

Rs.1652.00

GL.ASS INDUSTRY

Zone I

Semi-Sk Un·Skllled 7855.00 7455.00 7355.00 6955.00 Rs.1662.00

GLASS BULB

Zone I II

Special Allowance

Rs.2255.00

FOREST ANC FORESTRY

Semi-Sk 8652.00 8352.00 7852.00

Un-skilled 8152.00 7852.00 7352.00 Special Allowance

Rs.2125.00

Skilled 6125.00 6625.00 7125.00

S-Skilled 5625.00 6125.00 6625.00

Un-Skilled 5125.00 5625.00 6125.00 Special Allowance

Rs.2398.50

HOSPITAl.

Zone

Skilled

Semi-Sk

Un-Skilled

I

8598.50

8098.50

7698.50

II

8398.50

7898.50

7498.50

Ill

8198.50

7698.50

7298.50

HOTEL & RESTAURANTS

Zone

Special Allowance

Rs.1652.00

Skilled

Semi-Sk

Un-Skilled

I

9352.00

8652.00

8152.00

II

9052.00

8352.00

7852.00

Ill

8852.00

8152.00

7652.00

81

ICE & COLD DRINKS

Rs.2014.20

Special Allowance

Zone

Skilled

Semi-Sk

Un-Skilled

I

8014.20

7514.20

7014.20

II

7714.20

7214.20

6714.20

LAUNDRY Zone

Rs.1652.00 Skilled

Semi-Sk

Special Allowance Un-Skilled

I

9352.00

8652.00

II

9052.00

8352.00

8152.00 7852.00

Ill

8852.00

8152.00

7652.00

LIQUOR INDUSTRIES Zone

Rs.2923.30

Special Allowance

I

II

Ill

Skilled

7033.30

6733.30

6433.30

Semi-Sk

6933.30

6633.30

6333.30

Un-Skilled

6833.30

6533.30

6233.30

Rs.2913.75

OIL MILLS Category

Zone I

Zone II

Skilled

8213.75

7913.75

S-Skilled

7713.75

7413.75

Un-Skilled

7213.75

6913.75

OPTICAL FRAMES

Special Allowance

Rs.2592.00

Special Allowance

Zone

Skilled

Semi-Sk

Un-Skilled

I

8192.00

7192.00

II

7992.00

7692.00 7492.00

Ill

7792.00

7292.00

6792.00

PAINTS & VARNISHES

6992.00

Rs.2923.30

Special Allowance

Zone

Skilled

Semi-Sk

Un-Skilled

I

6863.30

6763.30

6663.30

II

6663.30

6463.30

Ill

6463.30

6563.30 6363.30

PAPER AND PAPER BOARD

6263.30

Rs.2357.50

Special Allowance

Zone

Skilled

Semi-Sk

Un-Skilled

I

8457.50

7957.50

7457.50

II

8257.50

7757.50

7257.50

Ill

8057.50

7557.50

7057.50

82

Rs. 2520.00

PLASTICS

Special Allowance

Zone

Skilled

Semi-Sk

Un-Skilled

I

7820.00

7320.00

6820.00

II

7670.00

7170.00

6670.00

Ill

7520.00

7020.00

6520.00

POHA,KURMURA

Rs. 2913.75

Special Allowance

Zone

Skilled

Semi-Skilled

Un-Skilled

I

7313.75

7163.75

6713.75

II

7113.75

6963.75

6513.75

POTTERIES (MATICHI BHANDI)

Rs.2200.00

Special Allowance

Zone I

Zone II

Zone Ill

Skilled

6100.00

5950.00

5800.00

Semi-Skilled

5900.00

5750.00

5600.00

Un-Skilled

5700.00

5550.00

5400.00

POWERLOOMS (Employees) Above 184/-

Rs.6433.00

Accountant

Clerk

Zone

Skilled-A

Skilled-B

Semi-Sk

Un-Skilled

I

6733.00

6703.00

6673.00

6663.00

6783.00

6733.00

6683.00

II

6683.00

6653.00

6623.00

6613.00

6733.00

6683.00

6633.00

Ill

6633.00

6603.00

6573.00

6563.00

6683.00

6633.00

6583.00

POWERLOOMS (Employees) below 184/-

Manager

Special Allowance

Rs.4503.10

Special Allowance

Zone

Skilled-A

Skilled-B

Semi-Sk

Un-Sk.

I

4803.10

4773.10

4743.10

4733.10

4853.10

4803.10

4753.10

II

4753.10

4723.10

4693.10

4683.10

4803.10

4753.10

4703.10

Ill

4703.10

4673.10

4643.10

4633.10

4753.10

4703.10

4653.10

Manager

PREMISES WHEREIN BUFFALOES OR COWS ARE KEPT Zone

Skilled

Semi-Sk.

Un-Sk.

I

7037.20

6737.20

6437.20

II

6687.20

6412.20

6137.20

Ill

6337.20

6087.20

5837.20

PRINTING PRESS

Rs.3137.20

Rs.2923.30

Zone I II

Skilled

Semi-Sk

7523.30 7223.30

7423.30 7123.30

Un-Sk. 7323.30 7023.30

Ill

6623.30

6523.30

6423.30

Accountant

Clerk

Special Allowance

Special Allowance

83

PUBLIC MOTOR TRANSPORT

Special Allowance

Rs.2913.75

Zone

Skilled-A

Skilled-8

Skilled-C

Semi-Sk

I

8613.75

8413.75

8213.75

7513.75

Un-Skilled 7113.75

II

8413.75

8213.75

8013.75

7313.75

6913.75

READYMADE GARMENTS Zone

Rs.2923.30 Skilled

Semi-Sk

Un-Skilled

I

7083.30

6983.30

6883.30

II

6983.30

6883.30

6783.30

Ill

6683.30

6583.30

6483.30

Rs.2913.75

RICE FLOUR & DAL MILLS Zone

Skilled

Semi-Sk.

Un-Skilled

I

7513.75

7013.75

6713.75

II

7313.75

6813.75

6513.75

Rs.1652.00

RUBBER INDUSTRIES Zone

Skilled

Semi-Sk

Un-Skill

I

9352.00

8652.00

8152.00

II

9052.00

8352.00

7852.00

Ill

8852.00

8152.00

7652.00

Rs.2913.75

RUBBER BALLOON

Special Allowance

Special Allowance

Special Allowance

Special Allowance

Zone I

Zone II

Zone Ill

Skilled

7213.75

7113.75

7013.75

Semi-Sk

7013.75

6813.75

6713.75

Un-Skilled

6713.75

6613.75

6513.75

Rs.2520.00

SALT PAN INDUSTRY Highly-skilled

7520.00

Skilled

7120.00

Semi-Skilled

6820.00

Un-Skilled

6520.00 Rs.2520.00

SAW MILLS Zone I

Zone II

Zone Ill

Skilled

7920.00

7720.00

7520.00

Semi-Sk

7420.00

7220.00

7020.00

Un-Sk.

6920.00

6720.00

6520.00

Special Allowance

Special Allowance

84

SEEPZ

Rs.2466.20

Skilled

Zone I 8766.20

Semi-Sk Un-Sk.

8266.20 7766.20

SHOPS & COMMERCIAL ESTB.

Skilled Semi-Skilled Un-Skilled

Rs.2214.00 Zone I

Zone II

Zone Ill

8014.00 7614.00 7214.00

7714.00 7314.00 6914.00

7414.00 7014.00 6614.00

SILVER ARTICLES OR ORNAMENTS INDUSTRY

Rs.2640.00

Zone

Skilled

Semi-Sk

Un-Sk.

I

8140.00

7640.00

7140.00

II

7840.00

7440.00

6940.00

SOAPS & COSMETICS

Rs.1652.00

Zone

Skilled

Semi-Sk

Un-Sk.

I

9352.00

8652.00

8152.00

II

9052.00

8352.00

7852.00

Ill

8752.00

8052.00

7552.00

STEEL FURNITURE

Rs.2923.30

Zone

Skilled

Semi-Sk.

Un-Sk.

I

6763.30

6663.30

6563.30

II

6563.30

6463.30

6363.30

Ill

6363.30

6263.30

6163.30

STONE BREAKING

Rs. 2845.50

Zone

Skilled

Semi-Sk.

Un-Sk.

I

7595.50

7095.50

6795.50

II

7395.50

6895.50

6595.50

SWEEPERS OR SCAVENGERS

Rs.2625.00

Category

Zone I

Zone II

Zone Ill

Full time

7225.00

7075.00

6925.00

Special Allowance

Special Allowance

Special Allowance

Special Allowance

Special Allowance

Special Allowance

Special Allowance

85

Rs.2923.30

TANNERIES & LEATHER Skilled

Semi-Sk.

Un-Sk.

I

6323.30

6223.30

6123.30

II

6123.30

6023.30

5923.30

Ill

5923.30

5823.30

5723.30

Zone

Rs.2923.30

UTENSILS Zone

Skilled

Semi-Sk.

Un-Sk.

I

7423.30

7323.30

7223.30

II

7323.30

7223.30

7123.30

Ill

7023.30

6923.30

6823.30

Rs.1475.00

VILLAGE PANCHAYAT Zone

Skilled

Semi-Sk. Un-Sk.

I

8575.00

7875.00

7375.00

II

8375.00

7675.00

7175.00

Ill

7775.00

7075.00

6575.00

Rs.2913.75

WATCH STRAPS Zone

Skilled

Semi-Sk. Un-Sk.

I

8413.75

8013.75

7713.75

II

8113.75

7713.75

7413.75

Ill

7813.75

7413.75

7113.75

Rs.1652.00

WOODEN PHOTO FRAMES Zone

Skilled

Semi-Sk.

Un-Sk.

I

9352.00

8652.00

8152.00

II

9052.00

8352.00

7852.00

Ill

8852.00

8152.00

7652.00

WOODEN FURNITURE

Rs.1652.00

Zone

Skilled

Semi-Sk.

Un-Sk.

I

9252.00

8552.00

8052.00

II

9052.00

8352.00

7852.00

Ill

8852.00

8152.00

7652.00

Special Allowance

Special Allowance

Special Allowance

Special Allowance

Special Allowance

Special Allowance

86

Special Allowance in Maharashtra State The rate of Special Allowance f9r the period from 1.7.2014 to 31.12.2014 Special Allowance for Zone

IV

Rs. Ps

Rs. Ps

III Rs. Ps

· P.M.

1876.00

1876.00

1876.00

Automobile Repairing

P.M.

2800.00

2800.00

2800.00

3.

Bakeries

P.M.

2913.75

2913.75

2913.75

4.

Bricks or Roof Tiles

P.M.

1890.00

1890.00

5.

Canteen & Clubs

1652.00

1652.00

1652.00

6.

Card'Ho.ard Boxes

P.M.· • P .

2376.00

2376.00

2376.00

P/M.

2205.00

(Whole State of Maharashtra)

Sr. No.

Name of the Scheduled Employment

1.

Advocate and Attorney

2.

II

Period

. .

.·.

Rs. Ps

J

7.

Cashew Processi g

8.

Cement & Cement Based Industry ..

.M.\

3398.40

3398.40

3398.40

9.

Chemical Fertilizers

2640.00

2640.00

2640.00

10.

Cinema Exhibition

.....

f. · 'tl.k1.

2742.95

2742.95

2742.95

11.

Cloth Dyeing & Printing

P.M.

2913.75

2913.75

12.

Construction of Roads/Buildings

P.M.

2094.50

2094.50

2094.50

13.

Cotton Ginning & Pressing

P.M.

2625.00

2625.00

2625.00

14.

Cycle Mechanic Work Shops

P.M.

2520.00

2520.00

15.

Dairy

P.M.

2750.00

2750.00

2750.00

16.

Dispensary

P.M.

2923.30

2923.30

2923.30

17.

Drugs & Pharmaceuticals

P.M.

1652.00

1652.00

1652.00

18.

Dyes & Chemical s

P.M.

2921.45

2921.45

2921.45

19.

Eatable Tobacco

P.M.

2497.50

(Whole State of Maharashtra)

20.

Engineering Industry

P.M.

1652.00

1652.00

1652.00

21.

Exercise Books

P.M.

2923.30

2923.30

2923.30

22.

Factories under Factories Act (Residuary)

P.M.

2520.00

2520.00

2520.00

23.

Film Production Studio

P.M.

2880.00

2880.00

----------

24.

Forest & Forestry

P.M.

2255.00

2255.00

---------

Highly Remote Area

Other Areas

2742.95

87

Special Allowance for Zone Sr.

Name ot the Scheduled Employment

Period

No.

Rs.Ps

II

Ill

IV

Rs. Ps

Rs.Ps

Rs. Ps

P.M.

3116.50

3116.50

3116.50

...........

P.M.

1652.00

1652.00

1652.00

----------

Hair Cutting. Saloon

P.M.

1652.00

1652.00

1652.00

.................

29.

I landloo•n

P.M.

2125.00

2125.00

2125.00

---- ------

30.

Hospital

P.M.

2398.50

2398.50

2398.50

...................

31.

I !ole) & Restaurants

P.M.

1652.00

1652.00

1652.00

...

32

Jc..- 8: Cold Drinb

P.M.

2014.20

2014.20

----------

---------

1652.00

1652.00

2923.30

2923.30

1652.00 ··------2923.30 ---------

2913.75

2913.75

2592.00

25.

l'ountain Pen & Hall Pen

26

(ill '

28.

l-3'11b

34.

t :,,u\l'

35

OJ 1\ l!'l

36.

Opt i V>

0

6

Maharashtra

12

36

48

Jan-June

15 18

20 24

Jan-June Jan..June

7

Goa

5

3 Q)

8

Madhya Pradesh

6

n

9

Chhat1sgarh

10 11

0

1

3

4

Orissa

NA

NA

NA

NA

Punjab

1

2

3

Aprii..Sep

Jan-June

.,3

:E

Confirmed by Bipln on 20th July - Mail. Only DO

Rruw1

OOV>

-c

Status

July-Dec

15th July & 15th Jan July-Dec 15th July July-Dec 15th July & 15th Jan July-Dec 15th July I & 15th Jan NA NA

Half Yearlv Half Yearlv Monthly

Half Yeartv Half lvearlv NA

Confirmed by Rajinion 20th July • Mall Only DO Confirmedby Gopalon '21st Julv - Ma1l Confirmed by Chandra on 20th July - Mall Confirmedby Vimlon 19th Ju!v_• Mail

Confirmed by Reena on 21st Julv • Mail Confirmed by Reena on 21st Julv- Mall Confirmed by N.C.Nhapatra • IQ4.-:t7nn1

II)

C" Ill

;::;:

Oct-Mar

By 15th Oct

& 15th Aor

II)

12

Haryana

10

20

30

Monthly

Monthly

Every Month

Half Yearlv Monthly

.

....

13 14 15

Vi

8

I

16

H1machalPradesh Rajasthan Tam1INadu • A&N Island Uttar Pradesh

17

West Bengal

18

Bihar Jharkhand Chandigarh (UT)

NA NA

Uttaranchal Jammu & Kashmir

NA NA

;:;:-

19 20 21 22 tD tD

NA NA

NA NA

NA NA

NA

NA

NA

NA

5

10

15

Jan-Dec

NA

NA

NA

3

6

9

M

NA NA 3 NA NA

1

NA 2

NA

NA

-

NA NA By Jan 30th

NA NA Yearly

NA

NA

NA

NA

Jan-June

July-Dec

15th July & 15th Jan

NA NA

M

NA

NA

Aprii-Sep

Oct- ar

NA

NA

NA

NA

NA By 15th Oct & 15th Apr NA NA

Half Yearlv NA NA Half Yearly

Welfare Commissioner (Govt Of Haryana) Pa11_able at Chandiaarh

Confirmed by RCOM l. consul Mr.Pramieet Singh Confirmed by Rajinion 20th July - Mail Only DO

Secretary TN labour Welfare Board

Welfare Commissioner, W.B

Applicable from 28.05.09

Not Applicable Confirmed by · Sinah on 20th Julv - Mail Confirmed by Suvradip on 22nd JulY • Mall Onlv DO.

Confirmed by RCOM l. consul MrPramieet Smah

NA NA ---

-- -- --

Confirmed by ACOM L. consul. Mr.Pramjeet Singh

100

THE PAYMENT OF GRATUITY ACT, 1972 An employee expects and deserves, as a matter of right, some reward when he retires after a long meritorious service. The enactment of the payment of gratuity act, 1972 has fulfilled this expectation of an employee. This act has came into existence since 16th Sept 1972.

What is Gratuity? Gratuity is a short of an award which an employer pays out of his Gratitude, to an employee for his long and meritorious services, at the time of his retirement, or termination of his services. Payment of Gratuity is however, compulsory for employers subject to Eligibility. (stated as below) Under the act an employee become, entitle to earn gratuity after putting in service of minimum five years. When an employee dies while in service his nominee or heirs are entitle to get gratuity even if the employee had put in less than 5 yrs. service. The rate of gratuity is 15 days salary every year of service but the total amount of gratuity cannot exceed Rs. 350000/- ; recently from 24th May 2010, Central Govt. by Gazette Notification enhance the limit upto Rs. 10,00,000/(Rupees Ten Lac) Object:The payment of gratuity act, 1972 has been passed with the object of providing a uniform scheme for payment of gratuity to industrial workers throughout the country.

1. 2. 3. 4. 5. a)

Applicability:Every factory (as defined in Factories Act), mine, oilfield, plantation, port and Railway Company. 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 and Any establishment employing 10 or more persons as may be notified by the Central Government. Once act applies, it continues to apply even if employment strength falls below 10. The Act also has been made applicable to :Motor Transport undertaking, b) Clubs, c)Inland Water Transport Establishments d) Local Bodies and e) Solicitors Officers. Eligibility:-

1. Any employee has to render minimum five years‘ of service. 2. At the time of retirement or resignation or on superannuation, an employee should have rendered continuous service of not less than five yrs. 3. In case of death or disablement, the gratuity is payable, even if he has not completed 5 yrs of service. Notice of Opening, Change or closure of An Establishment:An employer has to send a notice in Form A to the Controlling Authority of the area within 30 days of the Rules as becoming applicable. In addition to that, Form B is to be submitted within 30

101

days of any change in the name, address, employer or nature of business whereas an employer has to send From C intending to close down the business atleast 60 days before intended closure. It is permissible Opt for Better Gratuity Scheme:An employee can, no doubt opt for scheme other than the payment of Gratuity Act, if it appears to be better, but on adoption of that, he has to abide by the Scheme in to. The supreme court has held that sub-section (5) of section 4 of the payment of gratuity act does not contemplate that the employee would be at liberty to opt for better terms of the contract, by keeping option open in respect of a part of the statute. While reserving his right to opt for beneficial provisions of the statute, he has to opt for either of them and not the best of the terms of the statute as well as those of the contacts. He cannot have both, such a constructions would defeat the purpose for which sub-section (5) of section 4 has been enacted. Impugned judgement cannot sustain and is set aside. What is Continuous Service ??? The term ‗completer year of service‘ means continues service for one year. An employee is said to have rendered continuous service, if:a) He has been in uninterrupted service, including service interrupted by sickness, accident, absents from duty with or without leave, lay-off, strike, or lock-out or cessation of work not due to the

b)

c)

d)

a) b) c) d)

employee‘s fault. Note:- if an employee having been superannuated is a re-employed by the employer without any break in service, he will be eligible for payment of service. In case of mine or non seasonal establishment working for less than 6 days in week, he has actually worked for atleast 190 days (in Mine) during the period of 12 months or 95 days, during the preceding 6 months, he shall be deemed to have rendered continuous service for a period of one year or 6 months, respectively. In case of any other non-seasonal establishment he has actually worked for atleast 240 days during the preceding 12 months or 120 days during the preceding 6 months, he shall be deemed to be have rendered continuous service for a period of 1 year or 6 months, respectively. In case of seasonal establishment, he has actually worked for at least 75% of the days on which the establishment was is operation. Notes:- for this purpose an employee shall be deemed to have actually worked on a day on which :He has been laid off under an agreement or in accordance with standing orders; He has been on leave with full wages, earned in the previous year; He has been absent due to temporary, disablement cause by accident arising out of, and in the course of, his employment, and In the case of female, she has been on maternity leave not exceeding 12 weeks

Retrenched Employee entitled to get Gratuity:Retrenchment means termination of service and termination of service is covered by the definition of retirement under the Act. Retrenchment of an employee falls within the scope of section 4(1) (b) 102

of the act under which gratuity is payable to an employee on his retirement. Therefore the employee is entitled to get gratuity. Benefits:1. Gratuity is payable on the basis of all emoluments earned by the employee, i.e. basic wages plus Dearness Allowances / Special Allowances. 2. The quantum of gratuity is to be computed at the rate of 15days a wages (7days 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 month 3. The total amount of gratuity payable shall not exceed the prescribed limit i.e. Rs. 10,00,000/- (after publication of notification) 4. In case where higher benefit of gratuity is available under any gratuity scheme of the Co. the employee will entitled to higher benefit. Calculation of Gratuity: 1. Gratuity = Monthly Salary / Wages Last Drawn x 15days x no. of yrs. of Service 26 2. Piece rated employee – Daily wage is average (total wages drawn in last 3 months preceding termination) No. of Days Worked

x 15 Days x No. of Years of Service

3. Seasonal employee – based on 7days wages for each season. 4. Max. Gratuity Payable under the Act is Rs. 10,00,000/- (w.e.f. 24th May2010) Q Since the payment of gratuity is not a regular feature, as such, we face difficulty in calculation of gratuity. Kindly appraise the method of calculation of gratuity? A Section 4 of the Payment of Gratuity act, 1972 deals with calculation of gratuity, The Explanation to the Act Inserted by Act No. 22 of 1987 (w.e.f. 1-2-1987) provides that the completion of continuous services of five years shall not be necessary where the termination of the employment of the employee is due to death or disablement.

Example: Mr. Jatin Joined an establishment in January 1985 at Rs. 5,000/- per month. His wages were raised to Rs. 15,000 per month in December, 2005. He retired on 31st December, 2005. The amount of gratuity payable to him shall be calculated as under: 103

Mr. Jatin retired on: =31-12-2005 = -------------------------------X 15 X 20 Joined on : 01-01-1985 Total Service : 20 years His last drawn monthly salary was Rs. 15,000. The gratuity for the period of 20 years = 15 days wages X 20 Monthly wages last drawn comprises of 26 days. Hence the calculation will result as follows 15000 = --------------------------------- X 15 (days per completed year of service) 26

X 20 yrs.

=Rs. 173077.00 will be payable toward Gratuity to Mr. Jatin

1. a) b)

2.

1.

2.

3.

4.

Forfeiture of Gratuity:The employee may wholly or partially forfeit the gratuity payable to him if his services are terminated on account:For his riotous or disorderly conduct or any other act of violence on his part or. For any act which constitutes an offence involving moral turpitude. Note:- If a workman who was dismissed for assaulting another workman, in a factory, is not entitled to payment of any amount of gratuity. The employee partly forfeits the gratuity payable to him if his services are terminated for any act, wilful omission or negligence, causing any damage or loss to, or destruction of, property belonging to the employer, to the extent of damage or loss caused. Recovery of Gratuity:On account of his death: - If the employee has a family, he must nominate one or more members of the family and none other. If the employee has no family, he can nominate any person or persons of his choice. However, if the employee acquires a family after nominating any person or persons of his choice, such nomination becomes invalid and the employee has to make a fresh nomination of one or more members of his family. The employee who is eligible for payment of gratuity and dies than his nominee or legal heir has to send a written application to the employer in Form J (For Nominee) & Form K (For Legal Heir) within 30 days from the date gratuity becomes payable. If the employer does not take any action on the application, the employee has to apply to the Controlling Authority in Form N within 90 days of the occurrence of the cause for the application for issuing necessary direction to the employer for making payment of gratuity. If gratuity is not paid by the employer Controlling Authority issues certificate to collector who recovers the amount as arrears of land revenue together with compound interest. Deduction of Gratuity – Not Permissible

104

The Gratuity of an employee can be forfeited or withheld only when he/she is dismissed for the prescribed misconduct like 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 or 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 if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude. In one case, the Calcutta High Court has also held that even if a workman gives an undertaking for making deductions, the gratuity of an employee cannot be withheld.

Time Limit of Payment:The Employer should pay the gratuity within 30 days from the date it becomes payable or after such date along with simple interest @10% p.a. (or as notified from Govt from time to time) on the amount of Gratuity, unless the delay is on the part of payee. Protection:Gratuity payable under the Act cannot be attached in execution of any decree or order of any civil, revenue or criminal court. Note: - If the employee is dead then the gratuity becomes payable to the heirs of the employee and the same becomes attachable in the hands of the employer as the employer is legally bound to pay the said gratuity to the legal heirs of the employee.

Liability for payment of gratuity to contact workers – whether principal employer or the contractor Q. In addition to regular employees, we are engaging contractors also. Some of the contractors‘ employees have completed five years‘ services. My query pertains as to whether the principal employer or the contractor is liable for payment of gratuity to the employees of the contractor? Ans:- In one case, the Kerala High Court has held that neither the Contract Labour (R&A) Act, 1970 nor the Payment of Gratuity Act, 1972 provided that the principal employer can be held liable to pay the gratuity to the workers engaged through the contract. However, the Madras High Court has held that although liability for payment of gratuity is that of the contractor but by virtue of section 21(4) of the Contract Labour (R&A) Act, the principal employer can be directed to make payment of gratuity to the employees of the contractor and recover the same from the contractor. In another case, the Madras High Court has held that when the contractor, who engaged the workmen, does not pay the amount of gratuity to them , the principal employer is liable to pay all dues including gratuity to such workers as per provision of section 21(4) of Contract Labour (Regulation & Abolition) Act, 1970.

Penal Provision:1. If any person, for the purpose of avoiding any payment to be made under the Act, knowingly makes or causes to be made any false statement or false representation he would be punished with imprisonment up to 6 months, or with fine up to Rs. 10000/- or, with both. 2. If any employer contravenes, or makes default in complying with any provisions of the act or any rule or order made there under, he would be punished with imprisonment up to 1 year, or with fine up to Rs. 20000/- or with both.

105

Handy tips for Employer:1) It is advisable for the employer to obtain nomination from the employee in Form ‗ F‘ 2) Form G when employee acquired family later 3) And any change of nomination to be submitted in form H , in duplicate.

As it renders easy for the employer to disburse the gratuity amount. If he neglects to obtain nomination and employee dies without nomination, it is likely that the family members of the deceased employee may approach the employer with conflicting claims to the gratuity compelling the employer to be dilemma and to resort to the legal processes. Display of Abstract of the Act:Every employer must display an abstract of the act and the Rules made there under in English and in the language understood by the majority of the employees at a conspicuous place at or near the main entrance of the establishment. Obligations of Employer: 1) Pay gratuity to the employees as required by the provisions of the Act and the rules framed there under 2) Determine the gratuity as soon as it becomes payable, and give notice of the same to the employee concerned and the controlling authority. In case of dispute regarding the amount determined, the admitted amount of gratuity must be deposited with the Controlling Authority. If the latter decides that any more gratuity is due to the employees, the same must be deposited with him. 3) Obtain an insurance in the prescribed manner for his liability for payment of gratuity under the Act, or establish an approved gratuity fund in the prescribed manner. Obligations of Employee: 1) An employee eligible for payment of gratuity under the Act, or any person authorised in writing to act on his/her behalf, has to apply to the employer within such time and n such form as may be prescribed under the rules for payment of gratuity as soon as it becomes due. 2) Every employee, after completing one year of service, has to nominate members of his / her family who may receive gratuity in case of his / her death.

Recent Court Judgement:2) Service of Badli worker during the years in which he did not completed 240 days, held could not be considered for Gratuity The petitioner was serving with the respondent from 1979 onwards and he came to be retired from 04.07.2008. he was paid a sum of Rs. 72,074/- towards the amount of gratuity considering 20 years of service and not considering his service in 1979 to 1983, 1991 and 1992 on the ground that in those years he was serving as badli worker and did not completed 240 days. The petitioner therefore approached the controlling authority and it held that the petitioner was entitled to a sum

106

of Rs. 94,599/- the amount of Rs. 72,074/-having been already paid, the respondent was held liable to pay the remaining amount of Rs. 21,750/- with 10% interest. Being aggrieved by the said decision of the Controlling Authority, the respondent preferred an appeal to the Appellate authority. The appeal was allowed and it was held that the petitioner‘s service rendered during the years from 1979 to 1983, 1991 and 1992 cannot be considered for the purpose of calculating gratuity as in all those years he had not completed 240 days in a year as he worked only as a Badli worker. The petitioner challenged this order by filing a writ, petition in the High court contending that daily wager service and break in service is to be considered for the purpose of calculating the amount of gratuity. In support of his case, he relied upon the decision of a single judge in the case of Ahmedabad Municipal Corporation v. Kantibhai 2010 II LLJ 640. But the single judge deciding the present petition pointed out that the decision in the case of Mafatlal Fine Spg. & Mfg, Co. Ltd. 1997 I LLJ 475 rendered by the Division bench was not pointed out in that case. Hence the decision -

in Ahmedabad Municipal Corpn‘s case was per incurium. The petition was therefore dismissed. HC. Guj. LLJ II 2011 P. 145, Vasantbhai Bhudarbhai v. Manager, Arvind Intex

3) It is permissible in law to deduct loan amount from retrenchment compensation and gratuity? The loan given to the employees is not a condition of service. The loan is ordinarily given on personal relationship. Whereas, compensation payable on retrenchment and gratuity payable on termination to eligible employees is a mandatory payment. Section 25 F of the act says that payment of compensation is a condition precedent to retrenchment of workman, in other words while dispensing with the service of the workman, the employer is bound to pay compensation. This is a mandatory payment which cannot be adjusted. The fill payment prescribed under law should be paid. Your attention is invited to section 25f (b), which clearly states that the workman *has been paid at the time of retrenchment,. Termination letter and the payment should be simultaneous transaction. Similarly, as far as gratuity is concerned, under section 4 of the gratuity act it clearly states that the gratuity shall be payable to the employee. This is a statutory provision. The statutory direction cannot be adjusted by the employer. He is bound to pay in full. But after payment, he has a right to recover according to the legal procedure. - 1991 – II CLR (Orissa) – 941 – Utkal Asbestos Ltd. v/s. T S Rao & Anr. 1964 – AIR (SC) – 1617 – Bombay Union of journalists v/s. State of Bombay. 4) Payment of Gratuity Act Provided that an employee, after he completes five years, will be entitled for gratuity. If he works for 4 years and 10 months? It is correct that he must complete five years service in order to be eligible for gratuity. However, in one case, the Madras High Court has held that an employee rendering continuous service for a period of 240 days in a year, i.e. the fifth year will be deemed to have continued in service for one year stipulated by section 2A of the Act. Accordingly, an employee who has put in his service for 10 months, 18 days for the fifth year subsequent to first 4 years should be deemed to have completed continuous service of 5 years and is entitled to gratuity. The high court also distinguished the earlier ruling of the Andhra Pradesh high court wherein it was held that an employee who has worked for 4 years and 11 months and 10 days having not completed five years of service will be not be entitled to gratuity.

107

Mettur Beardsell Ltd. (represented by uts Personnel Manager), Madras vs. Regional Labour Commissioner (Central Authority under the Payment of Gratuity Act, 1972) Madras, 1998 LLR 1072 (Mad.HC). 5) Section 2(e) & (f), 1(b) (c) & 4 (A clerk working in a temple is entitled to payment of gratuity since temple comes under the purview of establishment) Respondent no.3 was an employee of the appellant temple. He served the temple as a manager for several years and thereafter tendered his resignation which was accepted by the appellant temple. It appears that respondent no.3 thereafter claimed amount of gratuity but the appellant temple rejected that claim. Hence respondent no.3 raised an industrial dispute which was referred to the Labour Court for adjudication. The Labour Court allowed the claim of the respondent no.3. Hence the aggrieved appellant challenged the same by filing a writ petition in the High Court. But that was dismissed. Hence the appellant filed the present writ appeal contending that a Hindu temple cannot be considered as an establishment in order to grant gratuity payable under the provisions of the Payment of Gratuity Act, 1972. According to the appellant temple is a place of worship and it is neither a commercial nor non-commercial establishment as no trade or business is done by the appellant. The High court however dismissed the appeal and pointed out that the question whether a retired employee of a Hindu temple is entitled to claim benefit of gratuity on attaining the age of superannuation, is no more res integra in view of the Division Bench decision of the Orissa High Court in the case of Administrator Shri Jagannath Temple, Puri v. Jagannath Padhi and Ors. 1992 (65) FLR 946. The Orissa High Court has ruled that the whole temple would come under the purview of establishment and therefore clerk or manager who was working in a temple is entitled for payment of gratuity. In view of this position the Division Bench dismissed the writ appeal. -H. C. Karn. CLR III 2012 P.439, Management of Sri Venkatramana Temple & Shri Hale Mariyamma Temple, Kapu v. Dy. Labour Commissioner & Ors.

108

Summary:The Payment of Gratuity Act applies to every factory, mine, oilfield, plantation, port, railway company, and shop or establishment in which ten or more persons are employed. An employee is a person (other than an apprentice) employed for wages in any capacity including administrative and managerial. There is no wage ceiling for its applicability. Gratuity at the rate of 15 days wages for every completed year of service, is payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years. The act authorises the appropriate government to appoint any officer as a controlling authority for the administration of the Act.

109

ABSTRACT OF THE PAYMENT OF GRATUITY ACT, 1972 FORM 'U' 1. Extent the Act.---The Act extends to the whole of India: Provided that in so far as it relates to plantations a ports, it shall not extent to the State of Jammu and Kashmir. Section 1(2). 2. To whom the Act Applies.--- The Act applies to (a) every factory, mine, oilfield, plantation, port and railway company; (b) every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or mote persons are employed, or were employed, on any day of the preceding twelve months; and (c) such other establishments a class of establishments, in which, ten or more employees are employed, or were employed, on any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf. Section 1(3). 3. Definitions----(a) "Appropriate Government" means (i) in relation to an establishment-(a) belonging to, or under the control of, the Central Government, (b) having branches in more than one State, (c) of a factory belonging to, or under the control of, the Central Government, (d) of a major port, mine, oilfield or railway company, the Central Government, (ii) in any other case, the State Government. Section 2(a). (b) "Completed year of service" means continuos service for one year. Section 2(b). (c) "Continuos Service" means uninterrupted service and includes service which is interrupted by sickness, accident, leave, lay-off, strike or a lock-out or cessation of work not due to any fault of the employees concerned, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act. Explanation I.---In the cease of an employee who is not in uninterrupted service for one year, he shall be deemed to be in continuous service if he has been actually employed by an employer during the twelve months immediately preceding the year for not less than-(i) 190 days, if employed below the ground in a mine, or (ii) 240 days, in any other case, except when he is employed in a seasonal establishment. Explanation II,---- An employee of a establishment shall be deemed to be in continuos service if he has actually worked for not less than seventy-five per cent of the number of days on which the establishment was in operation during the year. Section 2(d)· (d) *Controlling authority, means an authority appointed by an appropriate Government under Section 3. Section 2(d). (e) "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 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: Provided that if a female employee, by a notice in writing to the Controlling Authority, expresses to her desire to exclude her husband from her family, the husband and his dependent parents shall no longer be deemed, for the purposes of this Act, to be included in the family of such female employee unless the said notice is subsequently withdrawn by such female employee.

110

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. Section 2(h). 4. Nomination.---(1) Each employee, who has completed one year of service, after the commencement of the Payment of Gratuity (Central) Rules, 1972 shall make within thirty days of completion of one year of service, a nomination. Section 6(1) read with Rule 86(I1) (2) 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 void. Section 6(3). (3) If at the time of making a nomination, the employee has no family, the nomination can be made in favour of any person or persons, but if the employee subsequently acquires a family, such nomination shall forthwith become invalid and the employee shall make within 90 days fresh nomination in favour of one or more members of his family. Section 6(4) read with Rule 6(3). (4) A nomination or a fresh nomination or a notice of modification of nomination shall be signed by the employee or, if illiterate, shall bear his thumb-impression in the presence of two witnesses, who shall also sign a declaration to that effect in the nomination, fresh nomination or notice of modification of nomination as the case may be. Rule 6(5). (5) A nomination may, subject to the provisions of sub-sections (3) and (4) of Section 6, be modified by an employee any time after giving to his employer a written notice of his intention to do so. Section 6(5). (6) A nomination or fresh nomination or notice of modification of nomination shall take effect from the date of receipt of the same by the employer. Rule 6(6). 5. Application for gratuity.---(1) An employee who is eligible for payment of gratuity under the Act, or any person authorised, in writing, to act on his behalf, shall apply ordinarily within thirty days from the date gratuity becomes payable: Provided that where the date of superannuation or retirement of an employee is known, the employee may apply to such employer before thirty days of the date of superannuation or retirement. Rule 7(1). (2) A nominee of an employee who is eligible for payment of gratuity shall apply, ordinarily within thirty days from the date the gratuity became payable to him, to the employer. Rule 7(2). (3) A legal heir of an employee who is eligible for payment of gratuity shall apply, ordinarily within one year from the date the gratuity became payable to him, to the employer. Rule 7(3). (4) An application for payment of gratuity filed after the expiry of the periods specified above shall also be entertained by the employer if the applicant adduces a sufficient cause for the delay. Rule 7(5). 6. Payment of gratuity.--(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years-(a) on his superannuation, or (b) on his retirement or resignation, or (c) on his death or disablement due to accident or disease: 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. Disablement means such disablement which incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement. Section 4(1). 111

(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned: Provided that in the case of a piece-rated employee, daily wages shall be computed on the average of the total wages received by him for a period of three months immediately preceding the termination of his employment, and, for this purpose, the wages paid for any overtime work shall not be taken into account: Provided further that in the case of an employee employed in a seasonal establishment, the employer shall pay the gratuity at the rate of seven days' wages for each season. Section 4(2). (1) The amount of gratuity payable to an employee shall not exceed twenty months wages. Section 4(3). 7. Forfeiture of gratuity.--(1) The gratuity of an employee, whose services have been terminated for any act, wilful 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. (2) The gratuity payable to an employee shall wholly be forfeited-(a) If the services of such employee have been terminated for his riotous or disorder conduct or of any other act of violence on his part, or (b) 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. Section 4(6). 8:

Notice of opening, change or closure of the establishment.--(1) A notice shall be submitted by the employer to the controlling authority of the area within thirty days of any change in the name, address, employer or nature of business. Rule 3(2). (2) Where an employer intends to close down the business he shall submit a notice to the controlling authority of the area at least sixty days before the intended closure. Rule 3(3).

9. Application to Controlling Authority for direction: If an employer--(i) refuses to accept a nomination or to entertain an application for payment of gratuity, or (ii) issues a notice either specifying an amount of gratuity which is considered by the applicant less than what is payable or rejecting eligibility to payment of gratuity, or (iii) having received an application for payment of gratuity, fails to issue notice within fifteen days; the claimant employee, nominee, or legal heir, as the case may be, may within ninety days of the occurrence of the occurrence of the cause for the application, apply to the controlling authority for issuing a direction under sub-section (4) of Section 7 with as many extra copies as are the opposite party: Provided that the controlling authority may accept any application on sufficient cause being shown by the applicant, after the expiry of the period of ninety days. Rule 10. 10.

Appeal:- Any person aggrieved by an order of the controlling authority may, within sixty days from the date of the receipt of the order, prefer an appeal to the Regional Labour Commissioner (Central) of the area, who has been appointed as the appellate authority by the Central Government: Provided that the appellate authority may, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal within the said period of sixty days, extend the said period by a further period of sixty days. Section 7 (7). 11 Machinery for enforcement of the Act or Rules in Central sphere:---All Assistant Labour Commissioners (Central) have been appointed as Controlling Authorities and all the Regional Labour Commissioners (Central) as Appellate Authorities. 112

12. Powers of the Controlling Authority:--- The Controlling Authority for the purpose of conducting an inquiry as to the amount of gratuity payable to an employee or as to the admissibility of any claim of, or in relation to, an employee for payment of gratuity, or as to the person entitled to receive the gratuity, shall have the same powers as are vested in a court, under the Code of Civil Procedure, 1908, in respect of the following matters, namely--(a) Enforcing the attendance of any person or examining him on oath; (b) Requiring the discovery and production of documents; (c) Receiving evidence on affidavits; and (d) Issuing commissions for the examination of witnesses. Section 7(5). 13. Recovery of gratuity.--If the amount of gratuity payable is not paid by the employer, within the prescribed time to the person entitled thereto, 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 thereon at the rate of nine per cent per annum, from the date of expiry of the prescribed time, as arrears of land revenue and pay the same to the person entitled thereto. Section 8. 14.

Protection of gratuity: No gratuity payable under the Payment of Gratuity Act and the rules made thereunder shall be liable to attachment in execution of any decree or order of any civil, revenue or criminal court. Section 13.

15.

Penalties for offences.-(1) Whoever, for the purpose of avoiding any payment to be made by himself or of enabling any other persons to avoid such payment, knowingly makes or causes to be made any false statement or false representation, shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both. Section 9(1). (2) An employer who contravenes, or makes default in complying with, any of the provisions of the Act or any rule or order made thereunder shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to one thousand rupees, or with both: Provided that if the offence relates to non-payment of any gratuity payable under the Payment of Gratuity Act, the employer shall be punishable with imprisonment for a term which shall not be less than three months unless the court trying the offence for reasons to be recorded by it in writing, is of opinion that a lesser term of imprisonment or the imposition of a fine would meet the ends of justice. Section 9(2).

16. Display of Notice: The employer shall display conspicuously a notice at or near the main entrance of the establishment in bold letters in English and in the language understood by the majority of the employees specifying the name of the Officer with designation authorised by the employer to receive on his behalf notices under the Payment of Gratuity Act or the rules made thereunder. Rule 4. 17. Display of Abstract of the Act and Rules: The employer shall display an abstract of the Payment of Gratuity Act and the rules made thereunder in English and in the language understood by the majority of the employees at a conspicuous place at or near the main entrance of the establishment. Rule 20.

113

FORM ‘A’ [See sub-rule (1) of Rule 3] Notice of Opening 1. 2. 3. 4. 5. 6. 7. 8. 9. (a) (b) (c)

Name and address of the Establishment Name and designation of the Employer Number of Persons employed Maximum number of persons employed on any day during the preceding twelve months with date Number of Employees covered by the Act Nature of Industry Whether Seasonal Date of opening Details of Head office/branches: Name and address of Head office Number of employees Name and address of other branches in India. 1. 2. 3. I verify that the information furnished above is true to the best of my knowledge and belief. Place..... Signature of the Employer With name and designation.

114

FORM 'F' See sub-rule (1) of Rule 6

Nomination To, (Give here name or description of the establishment with full address)

I, Shri/Shrimati/Kumari (Name in full here) whose particulars are given in the statement below, hereby nominate the person(s) mentioned below to receive the gratuity payable after my death as also the gratuity standing to my credit in the event of my death before that amount has become payable, or having become payable has not been paid and direct that the said amount of gratuity shall be paid in proportion indicated against the name(s) of the nominee(s).

2. I hereby certify that the person(s) mentioned is/are a member(s) of my family within the meaning of clause (h) of Section 2 of the Payment of Gratuity Act, 1972. 3. I hereby declare that I have no family within the meaning of clause (h) of Section 2 of the said Act. 4

(a) My father/mother/parents is/are not dependent on me. (b) My husband's father/mother/parents is/are not dependent on my husband. 5. I have excluded my husband from my family by a notice dated : to the controlling authority in terms of the proviso to clause (h) of Section 2 of the said Act. 6. Nomination made herein invalidates my previous nomination. Nominee(s) Name in full with full

Relationship with

Age of

Proportion by which

address of nominee(s)

the employee

nominee

the gratuity will be shared

(1)

(2)

(3)

(4)

1. 2. 3. So on. Statement 1. 2. 3. 4. 5. 6. 7.

Name of employee in full Sex Religion Whether unmarried/married/widow/widower Department/Branch/Section where employed Post held with Ticket No. or Serial No., if any Date of appointment

115

8. Permanent address: Village Post Office

Thana District

Sub-division State

Place: Signature/Thumb-impression of the Employee Date: Declaration by Witnesses Nomination signed/thumb-impressed before me Name in full and full address of witnesses.

Signature of Witnesses.

1.

1.

2.

2.

Place: Date:

Certificate by the Employer Certified that the particulars of the above nomination have been verified and recorded in this establishment. Employer's Reference No., if any Signature of the employer/Officer authorised Designation

Date:

Name and address of the establishment or rubber stamp thereof.

Acknowledgement by the Employee Received the duplicate copy of nomination in Form 'F' filed by me and duly certified by the employer. Date:

Signature of the Employee

Note.—Strike out the words/paragraphs not applicable.

116

Maharashtra Profession Tax Act, 1975 Short title, extent and commencement:(1) This Act maybe called the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975. (2) It extends to the whole of the State of Maharashtra. (3) It shall be deemed to have come into force on the 1st day of April 1975. 2. Definitions.— In this Act, unless the context otherwise requires,-(a)

"Commissioner" means the Commissioner of Profession Tax appointed under section 12, and includes an Additional Commissioner of Profession Tax (if any) appointed under that section;

(b)

"Corporation area" means an area within the limits of a municipal corporation constituted under the Bombay Municipal Corporation Act, the Bombay Provincial Municipal Corporations Act, 1949 or the City of Nagpur Corporation Act, 1958; (ba) "Employee" means a person employed on salary or wages, and includes--

(i)

A Government servant receiving pay from the revenues of the Central Government or any State Government or the Railway Fund.

(ii)

A person in the service of a body, whether incorporated or not, which is owned or controlled by the Central Government or any State Government, where the body operates in any part of the State, even though its headquarters may be outside the State;

(iii)

A person engaged in any employment of an employer, not covered by items (i) and (ii) above;

(c)

"employer" in relation to an employee earning any salary or wages on regular basis under him, means the person or the officer who is responsible for disbursement of such salary or wages and includes the head of the office of any establishment as well as the manager or agent of the employer;

(ca) "engaged", in relation to any profession, trade, calling or employment means occupied fully or otherwise in such profession, trade, calling or employment, whether any pecuniary benefit or benefit of any nature whatsoever, actually accrues or not to a person from such occupation. (d)

"month" means a month reckoned according to the British calendar;

(e)

"person" means any person who is engaged actively or otherwise in any profession, trade, calling or employment in the State of Maharashtra, and includes a Hindu undivided family, firm, company corporation or other corporate body, any society, club or association, so engaged, but does not include any person who earns wages on a casual basis;

(f)

*Prescribed, means prescribed by the rules made under this Act;

(g)

*Profession tax, or *tax, means the tax on professions, trades, callings and employments levied under this Act; 117

(h)

"salary" or "wage" includes pay or wages, dearness allowance and all other remunerations received by any person on regular basis, whether payable in cash or kind, and also includes perquisites and profits in lieu of salary, as defined in section 17 of the Income-tax Act, 1961, but does not include bonus in any form, and on any account or gratuity; (i)

(j)

"Schedule" means a Schedule appended to this Act;

"Tribunal" means the Maharashtra Sales Tax Tribunal constituted under section 21 of the Bombay Sales Tax Act, 1959, and discharging the functions of the Tribunal assigned to it by or under this Act; (k)

"year" means the financial year.

3. Leavy and Charge of Tax :(1) Subject to the provisions of article 276 of the constitution of India and of this Act, there shall be levied and collected a tax on professions, trades, callings and employments for the benefit of the State. (2) Every person excluding firms (whether registered under the Indian Partnership Act, 1932, or not) and Hindu Undivided family engaged actively or otherwise in any profession, trade callings or employment and falling under one or the other of the classes mentioned in the second column of Schedule I shall be liable to pay to the State Government the tax at the rate mentioned against the class of such persons in the third column of the said Schedule; Provided that, the tax so payable in respect of any one person shall not exceed five thousand rupees in any year: Provided also that, a person who is liable to pay tax has remained un-enrolled; then, his liability to pay tax under this section for the periods for which he has remained so unenrolled shall not exceed eight years from the end of the year immediately preceding the year in which he has obtained the enrolment certificate or the year in which the proceeding for enrolment is initiated against him, whichever is earlier. 4. Employer's liability to deduct and pay tax on behalf of employees:The tax payable under this Act, by any person earning a salary or wage, shall be deducted by his employer from the salary or wage payable to such person, before such salary or wage is paid to him, and such employer shall, irrespective of whether such deduction has been made or not, when the salary or wage is paid to such persons, be liable to pay tax on behalf of all such persons: Provided that, if the employer is an officer of Government the State Government may, notwithstanding anything contained in this. Act; prescribe by rules the manner in which such employer shall discharge the said liability: Provided further that, where any person earning a salary or wage:a. Is also covered by one or more entries other than entry 1 in Schedule I and the rate of tax under any such other entry is more than the rate of tax under entry 1 in that Schedule, or b. Is simultaneously engaged in employment of more than one employer, and such person furnishes to his employer or employers a certificate in the prescribed form declaring inter alia, that he Shall get enrolled under sub-section (2) of section 5 and pay the tax himself, than the 118

employer or employers of such person shall not deduct the tax from the salary or wage payable to such person and such employer or employers, as the case may be, shall not be liable to pay tax on behalf of such person. Schedule – I (see Section 3) Schedule of rates of tax on professions, Trades, Callings & Employments.

With Effect From 01 July 2014 Class of Persons Salary and wage earners, such persons whose monthly salaries or wages are:

Rate of Tax

From 01-07-2014 Up to Rs. 7500/From Rs. 7501/From Rs. 10001/-

To &

Rs. 10000/Above

Nil Rs. 175/-pm Rs. 2,500/-p.a.*

*to be paid in following manner:a) Rs. 200/- per month except in the month of February. b) Rs. 300/- for the month of February

Note: Salary / Wages limit proposed upto Rs. 7500/- pm, on which P.Tax will not be payable which has been proposed by State Government of Maharshtra (Approval of the same is awaited) RETURNS: Liability to file return and payment of tax for employer (From 1-4-2011) onwards Tax Liability Periodicity Months of salary to be covered Due Date Less than ` 50,000 in previous year

Annual

March of the previous year and 31st March April to February of the current year

` 50,000/- or more in Monthly previous year

Salary of previous month

End of the month for which return is filed

In case of first year of Monthly registration

Salary of previous month

End of the month for which return is filed

Note: With effect from 1st February, 2011, an assesse whose tax liability during the previous year is ` 20,000 or more is required to upload his return in electronic mode. (Refer Notification No. VAT/AMD-1010/IB/PT/ADM-6 dated 26-11-2010). Such assessee can make payment of tax in Form MTR-6.

Exemptions from Payment of Profession Tax (Sec. 27A) 119

1. The Badli workers in the textile Industry 2. Any person suffering from a permanent physical disability (including blindness) which has the effect of reducing considerably such individual‘s capacity for normal work or engaging in a gainful employment or occupations. 3. Parents or Guardian of any person who is suffering from mental retardation specified in the rules made in this behalf, which is certified by a psychiatrist working in a Government Hospital 4. The Person who have completed the age of Sixty Five years. 5. Parents or Guardians of a child suffering from a physical disability as specified in para2.

Payment of Interest for Delay Payment:The employer, who has not paid the tax, is liable to pay simple Interest at 1.25% of the amount of the tax payable for each month for the period for which the tax remains unpaid. Penalty for non-payment of tax:— If an enrolled person or a registered employer fails, without reasonable cause, to make payment of any amount of tax, within the required time or date as specified in the notice of demand, the prescribed authority may, after giving him a reasonable opportunity of being heard, impose upon him a penalty equal to ten per cent, of the amount of tax due.

120

121

122

123

124

Professional Tax Slabs of other States in India where Professional Tax is Applicable:Salary Slab Andhra Pradesh Up to Rs.1 5000/. 15001/- to Rs. 20000/. 20001/- and Above

P. Tax P. M. Nil. Rs. 150/Rs. 200

Bihar Up to Rs. 25000/Rs. 25001/- to Rs. 41667/Rs. 41668/- & Rs. 83333/Rs. 83333/- Above

Salary Slab

Nil Rs.83/Rs.167/Rs.212/-

P. Tax P. M.

Kerala Rs. 2000/- to Rs. 2999/Rs. 3000/- to Rs. 4999/Rs. 5000/- to Rs. 7499/Rs. 7500/- to Rs. 9999/Rs. 10000/- to Rs. 12499/Rs. 12500/- to Rs. 16666/Rs. 16667/- to Rs. 20833/Rs. 20834/- and above

Madhya Pradesh Up to Rs. 12500/Rs. 12501/- to Rs. 15000/Rs. 15001/- & Above ## up to Feb. Rs. 212/-

Rs. 20/Rs. 30/Rs. 50/Rs. 75/Rs. 100/Rs. 125/Rs. 167.67/Rs. 208.34/-

Nil Rs. 125/Rs. 208/-##

Salary Slab Assam

P. Tax P. M.

Less than Rs.3500/Rs. 3500/- to Rs. 4999/Rs. 5000/- to Rs. 6999/Rs. 7000/- to Rs. 8999/Rs. 9000 & Above

Nil Rs.30/Rs.75/Rs.110/Rs.208/-

Gujarat Up to Rs. 5999/Rs. 6000/- to Rs. 8999/Rs. 9000/- to Rs. 11999/Rs. 12000/- & Above

Nil Rs. 80/Rs. 150/Rs. 200/-

Salary Slab Maharashtra Upto Rs. 5000/Rs. 5001 to Rs. 10000/Rs. 10001/- & Above ** Rs. 300/- in month of February

Meghalaya Up to Rs. 50000/Rs. 50001/- to Rs. 75000/Rs. 75001/- to Rs. 100000/Rs. 100001/- to Rs. 150000/Rs. 150001/- to Rs. 200000/Rs. 200001/- to Rs. 250000/Rs. 250001/- to Rs. 300000/Rs. 300001/- to Rs. 350000/Rs. 350001/- to Rs. 400000/Rs. 400001/- to Rs. 450000/Rs. 450001/- to Rs. 500000/Rs. 500001/- & Above.

P. Tax P. M. Nil Rs. 175/Rs. 200/-**

Nil Rs. 200/-p.a. Rs. 300/- p.a. Rs. 500/- p.a. Rs. 750/- p.a. Rs. 1000/- p.a. Rs. 1250/- p.a. Rs. 1500/- p.a. Rs. 1800/- p.a. Rs. 2100/- p.a. Rs. 2400/- p.a. Rs. 2500/- p.a.

125

Orissa Up to Rs. 13333/Rs. 13334/- to Rs. 25000/Rs. 25001/- & Above In Feb Rs.300/-

Nil Rs. 125/- p.m Rs. 200/-p.m

Tamil Nadu

Pondicherry Rs. 50/- to Rs. 99/- Rs. 100/- to Rs. 199/- Rs. 200/- to Rs. 299/- Rs. 300/- to Rs. 499/- Rs. 500/- to Rs. 799/- Rs. 800/- to Rs. 999/- Rs. 1000/- to Rs. 1499/- Rs. 1500/- to Rs. 1999/- Rs. 2000/- to Rs. 2499/- Rs. 2500/- & Above

Rs. 1/Rs. 1/Rs. 1/Rs. 1/Rs. 2.00/Rs. 5.00/Rs. 9.00/Rs. 13.00/Rs. 17.00/Rs. 21.00/-

Tamil Nadu (Salem)

(Chennai City/ Padi)

Up to Rs. 3500/Rs. 3501/- to 5000/Rs. 5001/- to 7500/Rs. 7501/- to Rs. 10000/Rs. 10001/- to Rs. 12500/Rs. 12501/- & Above Tamil Nadu (Madurai) Up to Rs. 3500/Rs. 3501/- to 5000/Rs. 5001/- to 7500/Rs. 7501/- to Rs. 10000/Rs. 10001/- to Rs. 12500/Rs. 12501/- & Above

Nil Rs. 17/Rs. 40/Rs. 85/Rs. 127/Rs. 183/-

Up to Rs. 3500/Rs. 3501/- to 5000/Rs. 5001/- to 7500/Rs. 7501/- to Rs. 10000/Rs. 10001/- to Rs. 12500/Rs. 12501/- & Above

Nil Rs. 17/Rs. 40/Rs. 85/Rs. 127/Rs. 169/-

Tripura Nil Rs. 17/Rs. 41/Rs. 82/Rs. 123/Rs. 163/-

Salary Slab West Bengal

P. Tax P. M.

Up to Rs. 7000/Rs. 7001/- to Rs. 8000/Rs. 8001/- to Rs. 9000/Rs. 9001/- to Rs. 15000/Rs. 15001/- to Rs. 25000/Rs. 25001/- to Rs. 40000/Rs. 40001/- & Above.

Nil Rs. 50/Rs. 90/Rs. 110/Rs. 130/Rs. 150/Rs. 200/-

Up to Rs. 2500/Rs. 2501/- to Rs. 3500/Rs. 3501/- to Rs. 4500/Rs. 4501/- to Rs. 6500/Rs. 6501/- to Rs. 10000/Rs. 10001/- & Above

Nil Rs. 55/Rs. 85/Rs. 100/Rs. 140/Rs. 180/-

States where P. Tax Not Applicable DELHI GOA HARYANA HIMACHAL PRADESH PUNJAB RAJASTHAN UTTARNCHAL UTTAR PRADESH JHARKHAND CHATTISGARH

126

STATUTORY COMPLIANCE: VARIOUS RETURNS: A GUIDELINE In General:- I am in the opinion that a making related compliances under Labour Law and the Rules Framed there under is a combustion Job for those who are engaged in personal / H. R. Department. Followings are the guide lines for them so as to make the accessible for the procedure provided under the status. MONTH WISE CHECKLIST FOR MON TH & LAST DAT

NAME OF THE

STATUTE

FORM

NAME OF RETURN / COMPLIANCE

TO BE SENT TO

E

JANUARY 15

15 30 30 31 31 31

THE EMPLOYMENT

EXCHANGE (CNV) ER-I ACT, 1959 THE MUMBAI LABOUR WELFARE A-I FUND ACT, 1953 THE PROFESSION TAX FORM ACT, 1975 III THE CONTACT LABOUR (R & A) XXIV ACT. 1970 THE FACTORIES ACT, 27 1948 THE MATERNITY 11 BENEFIT ACT, 1961 THE (NATIONAL & FESTIVAL HOLIDAYS) V ACT, 1963

QUARTERLY RETURN STATEMENT OF CONTRIBUTION OF DEC. ALONG WITH CHEQUE

MONTHLY RETURN A/W CHEQUE

HALF YEARLY RETURN BY CONTRACTOR

ASST. EMPLOYMENT OFFICER, CHURCHGATE WELFARE COMMISSIONER, ELPHINSTONE ROAD, ANY SCHEDULE BANK ASST. LABOUR COMMISSIONER

TARDEO

ANNUAL RETURN

DIRECTORATE OF INDUSTRIAL SAFETY & HEALTH, TARDEO

ANNUAL RETURN

DIRECTORATE OF INDUSTRIAL

ANNUAL RETURN

SAFETY & HEALTH, TARDEO /

LABOUR OFFICER, TARDEO

FEBRUARY 1 15

15

28

THE MINIMUM WAGES ACT, 1948 THE CONTRACT LABOUR (R & A) ACT, 1970 THE PAYMENT OF WAGES ACT, 1936 THE PROFESSION TAX ACT, 1975

III

ANNUAL RETURN

LABOUR INSPECTOR, TARDEO

ANNUAL RETURN- BY

ASST, LABOUR COMMISSIONER,

EMPLOYER

TARDEO

V

ANNUAL RETURN

DIRECTORATE OF INDUSTRIAL SAFETY & HEALTH, TARDEO / LABOUR OFFICER, TARDEO

FORM III

MONTHLY RETURN A/W

XXI

ANY SCHEDULE BANK

CHEQUE

127

MARCH

30

THE PROFESSION TAX ACT, 1975

FORM III

MONTHLY RETURN A/W CHEQUE

ANY SCHEDULE BANK

APRIL 15

THE APPRENTICESHIP ACT, 1961

APP2

HALF YEARLY RETURN

ER- 1

QUARTERLY RETURN

FORM III

MONTHLY RETURN A/W

MARCH ENDING

THE EMPLOYMENT

15

EXCHANGE (CNV) ACT, 1956

30

THE PROFESSION TAX ACT, 1975 THE EMPLOYEES

30

PROVIDENT FUND ACT, 1952

3A & 6A

CHEQUE ANNUAL INDIVIDUAL RETURNS & RETURN OF CONTRIBUTIONS

DY. APPRENTICESHIP ADVISOR SION ASST. EMPLOYMENT OFFICER, CHURCHGATE ANY SCHEDULE BANK REGIONAL PF COMMISSIONER BANDRA/ MALAD/ THANE

MAY

12

THE EMPLOYEES STATE INSURANCE

SUMMARY OF

6

ACT, 1948

30

30

THE PROFESSION TAX ACT, 1975 THE PROFESSION TAX ACT, 1975

CONTRIBUTION IN QUADRUPLICATE A/W

RESPECTIVE LOCAL OFFICE.

CHALLANS

FORM III FORM III

MONTHLY RETURN A/W CHEQUE

JUNE MONTHLY RETURN A/W CHEQUE

ANY SCHEDULE BANK

ANY SCHEDULE BANK

JULY THE EMPLOYMENT

15

EXCHANGE (CNV)

ER- I

QUARTERLY RETURN

28

HALF YEARLY RETURN

ACT, 1959

15

THE FACTORIES ACT,

1948 THE MUMBAI

15

LABOUR WELFARE

A -I

FUND ACT, 1953

30

THE PROFESSION TAX ACT, 1975

FORM III

THE CONTRACT

30

LABOUR (R & A)

XIV

ACT, 1970

STATEMENT OF CONTRIBUTION OF JUNE

MONTHLY RETURN A/W CHEQUE

ASST. EMPLOYMENT OFFICER, CHURCHGATE

DIRECTORATE OF INDUSTRIAL SAFETY & HEALTH, TARDEO WELFARE COMMISSIONER, ELPHINSTONE ROAD, ANY SCHEDULE BANK

HALF YEARLY RETURN BY

ASST, LABOUR COMMISSIONER,

CONTRACTOR

TARDEO

AUGUST

30

30

THE PROFESSION TAX ACT, 1975 THE PROFESSION TAX ACT, 1975

FORM III FORM III

MONTHLY RETURN A/W CHEQUE

SEPTEMBER MONTHLY RETURN A/W CHEQUE

ANY SCHEDULE BANK

ANY SCHEDULE BANK

OCTOBER DY. APPRENTICESHIP ADVISOR SION

15

THE APPRENTICESHIP ACT, 1961

APP2

HALF-YEARLY RETURN SEPT. ENDING 128

THE EMPLOYMENT

15

EXCHANGE (CNV)

ER- 1

QUARTERLY RETURN

FORM III

MONTHLY RETURN A/W

ASST. EMPLOYMENT OFFICER, CHURCHGATE

ACT, 1956

30 30

THE PROFESSION TAX ACT, 1975 THE FACTORIES ACT,

1948

3

THE CONTRACT

31

LABOUR (R & A)

VII

ACT, 1970

ANY SCHEDULE BANK

CHEQUE

RENEWAL OF LICENCE

DIRECTORATE OF INDUSTRIAL SAFETY & HEALTH, TARDEO

APPLICATION FOR

ASST, LABOUR COMMISSIONER,

RENEWAL OF LICENCE

TARDEO

APPLICATION FOR

NOVEMBER 12

THE EMPLOYEES STATE INSURANCE

SUMMARY OF

6

ACT, 1948

30 30

THE PROFESSION TAX ACT, 1975

THE (NATIONAL & FESTIVAL HOLIDAYS) ACT, 1963

30

FORM III I& IV

30

MONTHLY RETURN A/W APPLICATIONS FOR WITH LIST

DECEMBER RENEWAL OF REGISTRATION

THE PROFESSION TAX

FORM III

MONTHLY RETURN A/W

D

ANNUAL RETURN

BONUS ACT, 1965

LABOUR OFFICER, TARDEO

APPROVAL OF HOLIDAYS

B

THE PAYMENT OF

ANY SCHEDULE BANK

CHEQUE

& ESTABLISHMENTS ACT, 1948 ACT, 1975

RESPECTIVE LOCAL OFFICE.

QUADRUPLICATE A/W CHALLANS

THE BOMBAY SHOPS

15

CONTRIBUTION IN

RESPECTIVE MUNICIPAL WARD OFFICE

CERTIFICATE

ANY SCHEDULE BANK

CHEQUE

ASST, LABOUR COMMISSIONER, TARDEO

SUBMISSION OF VARIOUS RETURNS

129

Useful Website:-

Important note – Disclaimer This material has been prepared by the faculty based on his understanding of law and factual knowledge/awareness. This material is for reference only for the topics covered in the program. There may be other provisions of laws governing the specific areas and there may be constant updates in legal provisions from time to time. Though care has been taken to capture the factual contents of the material, one need to cross verify the same before placing reliance on the same. Views expressed herein should neither be construed as exhaustive/complete information nor legal opinion on any matter. The legal authorities may take different or adverse view. Before taking any decision, you should first contact your legal advisor for factual correctness and specific applicability to your situation. The faculty will not be responsible for any damages and/or loss suffered of any kind directly or indirectly for reliance placed on any information or views expressed hereinabove

130