Guidelines on Labour Laws

Foreword

I introduce this booklet on Labour Laws with immense

pleasure as it is a compilation or salient features of important

Labour Laws having a bearing on role and responsibilities of

Location In-charges in day to day working of the locations.

The essence of provisions under various statutes, which

encompass our locations, have been succinctly captured in

this concise compilation by HR group, Head Office, Indeed,

it gives us a peep into and opens the window of the ‘Legal

aspects of our work-life’.

I am confident that this collection will enlighten and show

the path forward to both the Operations as well as the HR

fraternity - towards a law compliant entity. The jargon of

the ‘Labour Laws’ world has been skillfully converted into

an easy flowing user-friendly text. Surely, this will help

in understanding of importance of Labour Laws in a

better way.

With good wishes,

(Gautam Datta)

ED (HR), HO08-03-2010

Contract Labour (Regulation & Abolition) Act, 1970

1. Applicability

(a) To every location in which 20 or more contract workmen (all contracts put together) are employed or were employed on any day of the preceding 12 months.

(b) To contractors engaging 20 or more contract workmen (all contracts put together at one location by the same contractor ).

2. Appropriate Government

“Central Government ”.

Hence, the Registration Certificate by Locations and Licence by Contractors) has to be obtained from ALC (Central) only.

3. Principal Employer

The “ Principal Employer” is the Location-In-charge.

4. Registration of the Establishment

The Location Incharge as “Principal Employer” is required to obtain a Certificate of Registration under Section-7 of the Act from ALC (Central). The Validity is forever.

5. Changes/Amendment In The Certificate Of Registration

(a) In case of change in the particulars of the Registration, the change has to be intimated to the Registering officer within 30 days of such change.

(b) When there are no changes in the particulars, there is no need to renew the certificate of registration.

6. Licence for Contractors

(a) The Contractor who engages 20 or more workmen is required to obtain Licence from ALC (Central) to work as Contractor for the jobs, which has been given in the application (check with work order).

(b) Location Incharge is required to issue a certificate in Form number V to the Contractor to submit the same to ALC (C) along with other documents/fee/Security deposit immediately on commencement of contract..

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Booklet on Labour LawsEmployee Relations Department, Head Office

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(c) The validity of Licence is one year from date of issue and has to be renewed by the contractor every year within 30 days before the date of expiry.

7. Registers to be maintained by Location-In-Charge

- Register of Contractors - Form XII

8. Returns

ANNUAL RETURNS in Form No.XXV (in duplicate) to the registering thofficer before 15 February of every year.

9. Display of Notice etc.

a) By Location-In-charge

1. Abstract of the Act

2. Name & address of the inspecting officer under the Act.

3. Name and Designation of authorised officer/representative(s) who will be witnessing the payment.

4. If the Certificate of Registration is in the name of an officer, who is not sitting at work site then Notices are required to be displayed at both the places (Worksite and his Office).

5. Copy of Registration Certificate.

b) By Contractor

1. Notice showing the rate of wages, wage period, place and time of disbursement hours of work, date of payment of wages and unclaimed wages.

(The Abstract and all Notices should be displayed in English and in Hindi and/or in the local language understood by the majority of workers.

10. Do (Please ensure)

• Timely payment of wages (by 7 day of following month).

• Witness of payment by your authorised/nominated officer and endorsement/certificate on wage sheet.

• Payment of Minimum Wages or the rates fixed by agreement / settlement / award.

• Obtain copy of Attendance & Wage sheet of each month duly signed by the Contractor or his Authorised Manager with seal.

• That Photo identity card issued to the contract labour must contain the name, address and signature of the contractor.

• Take authority letter from Contractor notifying name of his Manager/ Representative who will be supervising/making payment etc on his behalf.

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• Obtain a copy of Income Tax details and Trade Licence.

• Obtain copy of Police Verification report of all Contract Labours.

• Always mention Regn number of location in all correspondence.

• All above mentioned Record to be kept in Original for last 3 years.

• Contractors are also required to display many Notices, so insist on display.

• Obtain copies of Challans of PF/ESI every month from contractor.

11. Please Do not-

’’ issue any Character/Experience certificate to any Contract Labour.

’’ allow to use your address in his correspondence. At the most he may write/show as client address.

’’ increase number of labours / induct new Labours without justification and approval of State/Regional Head.

’’ issue any authorisation letter for any type of job / entry into any other organization as rep of IOCL / your location.

’’ make any direct payment to Contract labours and especially on Imprest Voucher.

12. Precautions-

• In case of non-payment by the Contractor, please inform LEO/ALC (C ).

• If Contractor is not coming forward to pay wages/dues on time, inform in writing to LEO/ALC and request for issuing notice to Contractor and giving orders by fixing date of payment.

• If possible, obtain endorsement from Labour department for making payment by Location in case Contract fails to abide the cut off date.

• Pay the wages but do not forget to mention the following on wage sheet.

• Payment made to Contract labours of M/s……….. towards wages/ Register for the month of…….. by Indian Oil Corpn Ltd (Location) as “Principal Employer” under Section 21 (4) of CL (R&A) Act read with Letter number …. Dated……. of LEO/ALC/RLC (Central)”

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The Factories Act, 1948

1. Applicability

This applies to all our Locations (Depots, Terminals, Installations and AFSs) where 10 or more workmen are employed. Contract Labours and Casual labour should also to be taken into account for this purpose.

2. Occupier

In case of all operating Locations which are covered under this act, the “Occupier” as defined under Section 2 (n) proviso (iii) of the Factories Act is the “Location In-charge”

Govt Of India, Ministry of Petroleum and Natural Gas is issuing Notification in favour of all such Location In-Charges under this section and these Notifications are addressed to the Concerned Chief Inspector Of factories.


Under this act the “Appropriate Govt.” is “State Government.”

Therefore, Director of Factories/Chief Inspector of Factories and Inspector of Factories/ Assistant Director of Factories are the authorities.

District Magistrate(s) and Chief Medical Officer(s) of your District also enjoy power of Inspector of Factories for implementation of certain sections and they are empowered to inspect your location.

4. Licence

In case of new Location, please apply in the prescribed format along with three copies of Drawing, Site map, Flow-Chart, Stability Certificate and other statutory Certificates and requisite Fee.

The Licence is generally granted /renewed for one year only except in few States where validity is more than one year. Generally it is given /issued for Calendar year. Accordingly, application for renewal is to be submitted 30 days in advance before the expiry of the Licence.

5. Major Responsibilities of The “Occupier”

1. Obtain permission to construct, extend or take in to use any building as factory

2. Once the construction is over, within 30 days before commencement of the work, apply for registration of the Factory.

3. Send 15 days clear notice to the Chief Inspector of Factories before the premises is occupied.

4. Submit copy of Notification of “Occupier” to your Inspector of Factories.

5. Whenever, there is a change of Location-In-Charge, send a notice to the Chief Inspector of Factories and concerned Inspector of Factories

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within 7 days from the date on which the new Occupier/Manager has taken over.

6. Whenever, there is a change in particulars of Licence including change in number of persons to be employed, application for amendment of licence is to be submitted to Chief Inspector of Factories/Factory Inspector.

7. The “Occupier” is responsible for implementation of the various provisions under the Act.

8. Follow various provisions related to Hazardous Process industry such as-

- Inform workers regarding the dangers involved in the work / process and the measures available to overcome such dangers.

- Intimate the Chief Inspector of Factories regarding the Health and Safety policy and any changes thereof.

- Draw Emergency plan and detailed disaster control measures with the approval of Chief Inspector of Factories.

- Setting up safety committee consisting of equal number of workmen and officers, and taking action on any imminent danger reported by the safety committee.

- Availability of first aid facilities and trained Workers.

- Availability of a Factory Medical officer (where 50 or more workers are engaged)

6. Provide all applicable welfare facilities mentioned under Section 42 to 45 and Section 47 read with State Rules.

7. Notice of Accidents:- Where an accident is likely to cause disablement of 48 hours or more or if any occupational disease occurs, the same should be reported to the Factories Inspector and Chief Inspector Of Factories.

8. FATAL ACCIDENT- In case of Fatal accident, please inform Chief Inspector of Factories, Inspector of Factories, District Magistrate, Local Police Station and other Statutory Authorities under various Central /State Rules such as Environment Protection, Electricity, Customs & Excise etc immediately over phone and with in 12 hours by all available means/Telegram and in writing also with due acknowledgement.

9. Must maintain following Registers and Records:

1. Register of accident and dangerous occurrences

2. Register of adult workers/Attendance (in respect of Contract Labours by respective Contractors)

3. Inspection Book

4. Record of white/ Lime washing and painting. (Form 7)

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5. Approved Plan of the Factory.

6. Stability Certificate/Register of Pressure Vessels

7. Records of Testing of Drinking Water (Potability Test)

8. Copy of Emergency and Disaster Control Management Plan.

9. Safety Committee meeting Register/File/Records.

10. To Be Displayed/ Returns to be sent

1. Abstract of the Act in both English and local languages.

2. Notice of periods of work, lunch hours, Weekly- off/closed day, shift hours etc.

3. List of Holidays.

4. Name & Addresses of the Inspector of Factories in both English and local language.

5. Half yearly and Annual report within stipulated time.

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Employees’ Provident Fund And Miscellaneous Provisions Act, 1952

1. Background

This is Central Act and applicable to our Industry/Establishment/Locations.

2. Applicability Of The Act

This Act applies to:(a) Every establishment which is a factory engaged in any industry

specified in the Schedule and in which twenty or more persons are employed, and

(b) Any other establishment employing twenty or more persons or class of such establishments which the Central Government may, by notification in the Official Gazette specify

3. Appropriate Government-

The Employees Provident Fund Organisation (EPFO), which comes under Ministry of Labour, Government of India is the Enforcing agency.

4. PF Implementation for regular employees:-

Our Corporation has obtained Exemption under para-27A form Central Government and known as “Exempted Establishment” Exemption has been granted vide Notification No.S-35025/4/93-SSII dated 17/03/1994. Therefore, we have our own PF Trust, which is managing the Funds etc.

It is centrally administered at Mumbai under the jurisdiction of the Regional Provident Fund Commissioner, Maharashtra & Goa. Provident Fund Section of HO is looking after activities of PF in respect of regular employees.

5. PF implementation for Contract workmen is required to be carried out by their “Employer” i.e. Contractor(s) and to be ensured by Location/Unit In charge. .

6. Object of the Act

To provide for: • Provident Fund to enable employees to meet certain contingencies.• Employees’ Pension Scheme for social security• Employees’ Deposit Linked Insurance Scheme to provide for

insurance in case of death while in service.

7. Establishment to include all Departments and Branches -

Where an establishment consists of different department or has branches, whether situated in the same place or in different places all such departments or branches shall be treated as part of the same establishment. Therefore, our all locations, irrespective of number of employees, are very much covered under the Act/Scheme. In other words,

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even if number of employees both permanent and contract labour put together employed in any particular unit is less than 20, that locations would be covered.

“Employees” word includes Contract Labours engaged in the activities/jobs of Handling, haulage, Loading & Unloading, Canteen, Security, M&R, Fire & Safety, Gardening, COCOs etc except TT Crew (LPG Cylinder/Bulk & POL)

8. Therefore, all the permanent employees of IOC and all the contract labourers engaged by the contractors in all the units are covered under the EPF Act, even if the number of contract labourers engaged by any single contractor is less than 20 and even if he is engaged for a day or two as The coverage under the Act has to be ensured from the First day of engagement / employment. .

9. Further, contract laborers engaged by the contractors at Retail outlets run on COCO basis are also to be covered.

10. If the Transporters at LPG Plants jointly engage the loading and unloading contract workmen through their representatives, then it becomes very difficult to hold any single transporter liable for the failure. Hence, locations need to be more vigilant in ensuring full compliance under the Act.

11. Since, IOC is liable to extend the PF to all the contract workmen irrespective of number of workmen engaged by each contractor including those contractors who do not have separate code number. Hence, the location should ensure the following: a) Contractors engaging 20 or more workmen obtain a valid PF code

number and ensure compliance of the provisions of the Act.b) Location may also approach the PF authorities and obtain PF Code

number in the name of our establishment for Contract Labours (with sub code number for each contract ), where there are multiple contracts and or the contractors do not possess Code number should make remittances of PF contributions under IOC code and file necessary returns.

12. Forms & Maintenance of Records, Registers etc by Contractor-There are various records/registers to be maintained and kept at Location. Therefore, please advise the Contractor(s) to maintain the same for compliance and inspection. If they are non conversant with such requirement, they may engage consultant to complete these compliance and maintenance of Records/Registers/ etc.

Note: Copies of the attendance register for the month and the wages register should be obtained by the Location-In-Charge from the contractor and the amounts paid must be tallied with the amounts due. Contractor must also be advised to submit the proof of submission of various returns including copy of Challans so that it will amount to total compliance.

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13. Important Things to be remembered-

A. When Contractor/Code Number Changes

(a) The workmen may be asked to fill Form No. 13 (R) and submit it to the Commissioner through the present contractor.

(b) Please note that if contractor remits the contribution under the code number allotted in the name of IOC for PF implementation in respect of contract labour, there would be no requirement forForm.13 (R).

B. Annual Statement of Member’s Account

PF Department will issue annual PF statements to members through the employer by the month of September every year. The issuance of the same should be ensured.

C. When Contract Expires or it is Terminated

(a) Contractor’s dues/Security Deposit should be paid only after ensuring total compliance as mentioned above by the contractor. In case of doubts locations can write to RPFC’s office to check authentication of Contractor’s contribution claims in writing.

(b) Records such as attendance register, wage register, Challans for payment of contribution etc., in respect of contract workmen engaged by him during the contract period may also be obtained and kept at location.

(c) The address of the contractor may be obtained and maintained at the location.

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Implementation of ESI Act/ Scheme

1. Applicability of the Act

This Act applies to all Factories and Establishments. Where an establishment consists of different department or has branches, whether situated in the same place or in different places, all such departments or branches shall be treated as part of the same establishment. Therefore, our all locations, irrespective of number of employees, are very much covered under the Act/Scheme. In other words, even if number of employees both permanent and contract labour put together employed in any particular unit is less than 20, that location would be covered.

This is Central Act and applicable to our Industry/Establishment/Units.

However, for the purpose of coverage Locations must find out from Office of the Regional Director / Assistant Director / Local Office of the ESI Corporation whether the area in which location is situated falls under implemented area or not. If not, falling under implemented area, the provisions of the Workmen’s Compensation Act will be applicable.

2. Object of the Act

The Act is a piece of Social legislation and the aim is to give relief and provide grant of cash benefit to the employees, their families and dependent in certain contingencies such as sickness, maternity and employment injury and provide medical benefit also. The following benefits are admissible under the Act / Scheme.

• Sickness benefit• Medical benefit• Maternity benefit• Disablement benefit / Compensation • Funeral benefit


Employees’ State Insurance Corporation (ESIC), which comes under Ministry of Labour, Government of India is Enforcing agency.

4. ESI implementation for Regular employees :-

Our regular employees are drawing wages more than the prescribed limits for the purpose of coverage, hence not covered under the Act. IOCL has formulated independent medical rules and in the past Corporation had obtained Exemption also form Central Government. Application for continuing the exemption beyond 30.11.2008 is presently pending with Ministry of Labour.

Locations are covered under the territorial jurisdiction of ESIC and compliance is to be made accordingly.

The exemption is not available to the contract labours. Therefore, ESI

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implementation for Contract workmen has to be ensured by the Locations.

5. Employee to Include Contract Labour engaged in the activities/jobs of Handling, haulage, Loading & Unloading, Canteen, Security, M&R, Fire & Safety, Gardening, COCOs etc except TT Crew (LPG Cylinder/Bulk & POL).

6. Therefore, all the contract labourers engaged by the contractors in all the units are covered under the ESI Act, even if the number of contract labourers engaged by any single contractor is less than 20 and even if he is engaged for a day or two as coverage under the Act has to be ensured from the First day of engagement / employment.

7. Further, contract laborers engaged by the contractors at Retail outlets run on COCO basis are also to be covered, subject to the condition that it falls under implemented area.

8. If the Transporters at LPG Plant jointly engage the loading and unloading contract workmen through their representatives, then it becomes very difficult to hold any single transporter liable for the failure. Hence, locations need to be more vigilant in ensuring full compliance under the Act.

9. ESI Code Number for Contract Labours

Since, IOCL is liable to extend the ESI benefits to all the contract workmen irrespective of number of workmen engaged by each contractor including those contractors who do not have separate code number. Hence, the location should ensure the following:

• Contractors engaging 20 or more workmen obtain a valid ESI code number and ensure compliance of the provisions of the Act.

• Location may also approach the ESI authorities and obtain ESI Code number in the name of our establishment ( i.e IOCL) for Contract Labours ( sub code number for each contract), where there are multiple contracts and or the contractors do not possess Code number, the contractor should make remittances of ESI contributions under this IOC code and file necessary returns.

10. Forms & Maintenance of Records, Registers etc by Contractor-

There are various records/registers to be maintained and kept at Location. Therefore, please advise the Contractor(s) to maintain the same for compliance and inspection. If they are non conversant with such requirement, they may engage consultant to complete these compliance and maintenance of Records/Registers/ etc.

Note: Copies of the attendance register for the month and the wages register should be obtained by the location from the contractor and the amounts paid must be tallied with the amounts due. Contractor must also be advised to submit the proof of submission of various returns so that it will amount to total compliance.

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Important points to be kept in mind while implementing

provisions of PF and ESI Act/Scheme for contract Labours.

• In case of noticing defaulting attitude, the payment to contractor (s) limited to the contribution amount (Employer and Employee) may be withheld until the contractor submits a copy of wage sheet/payment register in respect of his workmen for the last month duly signed and stamped by the contractor or his authorized supervisor/agent.

• If the contractor is habitual defaulter and does not implement the scheme, Location-In-charge may deduct Employer’s and Employee’s contribution payable to PF/ESI Department from the bills of contractor(s) repeat from the bills of contractor(s) based on the wage sheet of workmen.

• Such deducted amount (based on the wage sheet) should be deposited preferably in the PF/ESI code number of concerned contractor (if he is having code number).

• If contractor fails to obtain code number, deducted amount may be deposited in the PF/ESI code number of your location. However, do not forget to write/mention that Contribution is in respect of Contract labours of M/s……and take his signature on all Challans.

• If the contractor deducts the contribution from the salary of the workmen, the same should be deposited in scheduled Bank directly by the contractor himself. Such amount deducted through salary, should not be acknowledge/accepted by location in charge in any case as it is the responsibility of contractor to deposit the amount directly to PF/ESI Department.

• Please advise the Contractor(s) to comply all provisions as “Employer” and in case of any difficulty, he/they should engage any consultant on retainership basis at his cost..

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The Payment of Wages Act, 1936

1. Applicability-

This act is not applicable to our regular employees as they are drawing more wages as prescribed under the Act for the purpose of coverage.

However, the Contract labours are covered under the Act. There are certain provisions, which are to be monitored by the Location to ensure and fulfil the obligation as “Principle Employer”.

2. Object of the Act-

Regulating payment of wages, imposition of fines and deductions from wages and eliminating all malpractices by laying down wages period, time andmode of payment of wages.

The Act, therefore, ensures payment of wages in a particular form at regular intervals without unauthorized deductions.

3. Scope & Coverage

The Act is applicable to the employees receiving wages below Rs.6500/-p.m. Wages include all remunerations payable in cash, overtime or sums payable for termination of service, but do not include house rent reimbursement, light vehicle charges, medical expenses, TA, PF contributions etc

- Authorities- State Labour Department

Limit of Deductions from Wages

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

cooperative societies, 75% of wages andb) In any other cases, 50% of wages

4 Important provisions are given below:-

• Fixing the wage period by Employer• Payment to the Contract labours should be made at the place of work

(Location)• Payment should be made in current currency and coin.

th• Payment should be made within 7 day of following month.• No amount should be deducted from the wages of contract Labours

which are not falling under “Authorised Deduction” under the act.• Displaying ‘Abstract “of the Act.

The Industrial Disputes Act, 19471. Applicability

The Act is applicable to our establishments/Locations. This is Central act and uniformly applicable to our Units.


For our Industry/Units/Locations, the “Appropriate Government” is “Central Government” as our Industry has been declared as “Controlled Industry” under I.D Act .

3. Object of the Act & Implementation:

The aim of the act is to ensure speedier resolution of Industrial Disputes and provides the machinery and procedure for settlement of Industrial Disputes. It is a self contained code to compel parties to resort to Industrial adjudication/ arbitration for resolution of existing or apprehended Industrial disputes between employers and employers, or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour, of any person.

4. Authorities:

The following officials of Central Industrial Relations Machinery, who comes under the Control of Chief Labour Commissioner (Central), Ministry of labour, Govt of India, are the authorities under the act: -• C.L.C (HQ level)• Dy. Chief Labour Commissioner (Hq & Others)• Regional Labour Commissioner• Assistant Labour Commissioner • Labour Enforcement Officer.

Officers mentioned against Sr. number 1 to 4 are “Conciliation Officers” also under the act.

5. Important Actions:-

• Always give notice of minimum 7 days in advance in the prescribed format under ID Act (FORM-E) before changing the timings of the Shift as it is construed “Change in terms and condition” of employment under the act. This provision also exists in our Certified Standing Orders.

• On receipt of any Notice from Labour department, either Location Incharge should attend the first meeting or may depute/authorise any other officer who is conversant to the matter to attend the meeting. Such nominated/authorised officer must carry an Authority Letter on Letterhead duly signed by the Location Incharge (Form- F).

6. Declaration of our Industry as “Public Utility Service”

Government of India, Ministry of Labour has been declaring our Industry as “Public Utility Service” from time to time by issuing a Notification to this effect. Please always keep a copy of such Notifications in your record.

7. Important points to be noted:-• Never accept in any Correspondence that IOCL is “Employer” in respect

of Contract Labours.• Do not ignore any Communication received from Labour Department.• Always send reply/response/data/information within stipulated time. If

not possible to meet the cut-off date, please send interim reply and seek extension of time.

• For all matters please do consult Regional HR and seek their advice and send all papers to them along with case details/history and your viewpoints/action taken by the Location in the past.

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The Workmen’s Compensation Act, 1923


This is Central act and also a piece of Social Security legislation. This act is applicable to our industry/establishments/locations. However, if the locations fall under ‘Implemented Area” as mentioned under ESI Act, then provision of the W.C Act, 1923 shall not be applicable to such locations.

The applicability of this act is limited to a section of workmen as defined in Schedule II, under Section 2 (1)(n) of the act as amended from time to time. As per the act, workmen employed, otherwise than in clerical capacity are covered.

2. Appropriate Government and Implementation

This is a Central Act and administrations of the act/provisions are under the control of State Governments. Under this act, the Competent Authority is known as “Commissioner for Workmen’s Compensation” .

3. Compliance /Forms & Maintenance of Records etc

In case of any accident of our regular workmen, where we are liable for making payment of Compensation, please take following actions in consultation with Regional HR-

• Inform “Commissioner for Workmen’s Compensation” in Form –EE.

• Send Notice/deposit Compensation with the Commissioner for Workmen’s Compensation” (FORM-A- Death Case and FORM-AA- Other cases)

• Obtain receipt of deposit in Form number –B

In case of any accident of Contract Labour, where Contractor is liable for making payment of Compensation, please advise the Contractor to take necessary actions.

4. Amount of Compensation-

It is to be calculated by Regional HR. Amount will be derived under Section 4 and 5 of the Act as amended from time to time.

5. Important points to be kept in mind-

• Under Section-12 of the Act, the Location Incharge as “Principal employer’ is liable to pay the compensation to the worker of the said contractor, if Contractor fails to do so.

• However, the Principal employer shall be indemnified by the contractor and can recover the amount so paid from the contractor.

• In case of our regular workmen, please inform the procedure to the family members and render all possible help to claim the amount form office of “Commissioner for Workmen’s Compensation”.

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•Rule 6 read with Section 8(1) in consultation with HR.

• This is the only Act where there is no nomination. In other words the amount can be claimed/distributed by the Commissioner to any /all relatives of a deceased workmen who were “dependants” on the earnings of the deceased workmen. The amount of compensation to be distributed as well as dependency aspect is decided by the Commissioner.

• There may be a designated official as “Commissioner for Workmen’s Compensation”. Any Presiding Officer of the Labour Court/Tribunal may also be designated as “Commissioner for Workmen’s Compensation”. In some of the States, District Authorities (SDMs/ADMs) have also been designated as “Commissioner for Workmen’s Compensation”.

Follow the procedure for depositing the amount as laid down under

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Payment of Gratuity Act, 1972


This is Central act and also a piece of Social Security legislation. This act is applicable to our industry/establishments/locations

2. Object of the Act-

The act provides for payment of Gratuity to persons employed in various types of Industries/Factories/Establishments etc after serving a minimum period in that particular establishment/factory etc.

This is applicable to the Contract Labours also and responsibility rests with the respective Contractors.


The “Appropriate Government” is Central Government.

4. Authorities and Implementation.:

The following officials of Central Industrial Relations Machinery, who comes under the Control of Chief Labour Commissioner (Central), Ministry of labour, Govt of India, are the authorities under the act: -

1. Labour Enforcement Officer -(Inspecting authority) 2. Assistant Labour Commissioner –(Controlling authority)3. Regional labour Commissioner (Appellate authority)

5. Payment of Gratuity-

It is payable to an employee on the termination of his employment after he has rendered continuous service 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.

However, the condition of five years of continuous service is not applicable for cases of cessation of service due to death or disablement.

6. Amount of Gratuity-

In normal case 15 days of wages for every completed year of service or part thereof in excess of six months.

7. Maintenance of Records/Registers etc -

Please ensure that

a) Notice of opening of Location has been sent to ALC (Central) inForm-A. [Sub Rule (1) of Rule 3 ]-in case of opening a new location.

b) Abstract of the said Act (English & in the language understood bythe majority of the employees) has been displayed on Notice Board (Rule –20)

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c) Notice displaying Name and Designation of officer has been notified/displayed to receive any Notice/application on behalf of the Employer (Rule –4)

d) Notice informing to the Controlling Authority regarding notice of change has been sent Sub Rule (2) of Rule (3)

e) Copies of Notices mentioned at serial. No. 1 & 3 has been forwarded to RLC/ ALC/ LEO (C)

f) Arrange to retain/obtain copies of nomination Forms in respect of all employees posted at your location from Regional HR.

g) All Notices should be in English and in the Language, which is understood by the majority of employees.

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The Shops and Establishment Act

•Administrative offices, which are not covered under Factories Act.

• The objective of the Act is to regulate the working and employment conditions of workers in the shops and establishments including the commercial establishments, which are not covered by the Factories Act or Mines Act or any other Act regulating the employment conditions.

• The Act provides for the working hours, rest intervals, overtime, holidays, leave, termination of service, maintenance of shops and establishments and other rights and obligations of the employers and employees. However, this is not applicable to persons employed in managerial position.

• On the Principle laid down by the Hon’ble Supreme Court of India in C. V. Raman’s Case, our all-administrative offices (Regional Offices, Divisional Offices, Area Offices etc) are out of preview of this Act/Rules, provided that provisions of the Local Shops & Establishment Act are similar to the provisions of Tamilnadu Shops and Estab. Act.

• However, to protect the interest of our Corporation and Heads of Administrative offices, it is advisable to have atleast Registration Certificate of our administrative Unit(s) from the concerned Local Authorities. This is required to have on record and we may use this to show/prove that the administrative heads are the “Employer” under various Act/Rules of their Establishment.

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This is applicable to units such as Small Depots, AFSs and all

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Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959

1) Applicability-

This act is applicable to our establishments.

2) Scope/ Objective

Under this act, Employers are required to Compulsory notify to the Employment Exchanges regarding all vacancies.

3) Returns

Employers are required to submit Quarterly Return in FORM -ER-I and Once in a two years in FORM - ER-II.

4) Comments.

The HR Group of Regional Office is looking after recruitment; therefore, aspect of sending RETURNS would be looked after by Regional HR.

5) Important

In case you receive any Notice/ Letter from your nearest/District Employment Exchange, please bring this to the notice of Regional HR and ensure that suitable reply is sent/given within stipulated time.

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Industrial Employment (Standing Orders) Act, 1946

1. Applicability

This is applicable to our Corporation/Establishment/Units.

2. Authority to Certify

R.L.C /Dy. Chief Labour Commissioner (Central), Govt of India

Comments-

We have Certified Standing Orders, which is applicable to all units of Marketing Division.

3. Important points for compliance-

• This is a very important and essential part of Terms and Conditions of employment of Workmen category and deals with various aspect such as category of workmen, Do’s and Don’ts, Act of Misconduct, Inquiry procedure, Competent authority to take actions, punishments and Grievance procedure etc.

• Please display a copy of Certified Standing Orders (CSO) at Location.

• Follow provisons of Para/Section 12.3 of the CSO whenever an additional shift is started, or altered or discontinued. Always give notice of Minimum 7 days in advance in the prescribed format (FORM-E) before changing the timings of the Shift. This provision also exists in ID Act as it is construed as “Change in terms and condition” of employment.

• For examining any act of Omission & Commission (misconduct), please refer Para/Section 19 of CSO.

• Please do consult your Regional HR for any disciplinary action related matter including Inquiry and its’ procedure.

• In case of violation of any provisions/rules and regulations of the Corporation by our regular workmen, which can be brought under the definition of “Act of Misconduct” under Para/Section 19 of CSO, please do consult Regional HR.

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Equal Remuneration Act, 1976

1. Objective

To ensure payment of equal remuneration to male and female workers and to prevent any discrimination against women, on the grounds of gender.

2. Scope and Coverage-

This act is applicable to our Units provided that on any specific post Male and Female (both category) workers are being engaged at that location.


The Central Government

4. Authorities-1. Labour Enforcement Officer -(Inspecting authority) 2. Assistant Labour Commissioner –(authority)3. Regional Labour Commissioner -(authority)

5. Register

Location is required to maintain a Register in FORM-D.

6. Precautions-

• Please inform Regional HR about any inspection carried out by labour department

• Always send reply within prescribed time/date or send interim reply and seek extension of time in writing.

• Advisable to check whether the details of notification mentioned in the inspection note is correct and your location is covered under the said notification.

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The Minimum Wages Act, 1948

•that the employment in which they are engaged, falls under the “Schedule Employment” as given in the Act.

• As of now, the Minimum Wages Act is not applicable to Petroleum Industry. However, based on Central act, State Governments have framed their Rules. Therefore, Location must Check/examine the State Rules also.

• Locations must ensure that Contract labours are paid wages not less than the minimum wages prescribed by the Government. If for the same nature of activities/jobs, State and Central Govt both have issued Notification, the higher of the Minimum wages prescribed by the Central Government OR respective State Government should be adopted.

• Do not forget to subscribe or collect Notification of Minimum Wages of your State.

The provisions of this Act are applicable to the contract labours provided

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The Official Secrets Act, 1923

•

It is applicable to all operating units only. Under this act, our units are declared as “Prohibited Place”.

• Appropriate Government

State Government (Home Department)

• Action required at Location.

In case your location has not been declared as ‘Prohibited Place”, please apply to the State Home Department stating that your’s is a Govt of India Undertaking engaged in manufacturing, production, storage and marketing of various Petroleum products and catering the need of Defence Installation (Army, navy and Air Force), Railways, Airports, Airways, Electric Generation Units/ Power Plants, Industrial manufacturing units and other various Civic authorities etc. Our establishments/industry has also been declared as “Public Utility Services” and “Controlled Industry”.

Our Storage units are very vital and important to nations requirement and vulnerable from Security point of view. In view of above, please request for declaring your unit as “prohibited Place” under the said act.

Please attach 3 copies of Site plan, simple flow chart of process and a drawing showing objects/places/land marks in the four corners (Chauhaddi) of your unit.

Once Notification is issued, please display reference of Notification and “PROHIBITED PLACE” at the main gate.

• Procedure

The State Government will carry out inspection of your unit and State/Central Intelligence Unit may also carry out surprise inspection and submit their report through District authorities (Police and administration) to Home department. Once satisfied with the security arrangements and procedure being followed by your Unit, a NOTIFICATION will be issued by State Home Department or District Magistrate.

On receipt of Notification, please forward copies to State Office, Divisional Office and Regional office for information and records.

• Authority

The Unit In charge enjoys certain powers under this act. Without his permission, no person can enter the premises and carry classified records, map and documents. The violator may face criminal action and can be awarded imprisonment by the Court.

Applicability

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Please refer following recent Circulars/Guidelinesissued by HO.

Subject Circular / IOM / number

The Factories Act, 1948 Circular No.2009/HR/24 of HO 29.05.2009

MOP&NG letterNo.I-1104/1/90-Gen 02.07.1992

IOM No : OP/27(FA) of HO 28.04.1987

E.P. F & Misc Act, 1952 IOM No. IR/1292 of HO 07.08.2009

Ministry of Labour Notification – Grant of exemption under Para 27-A 17.03.1994

IOM No.IR/1441(P) of HO 27.02.1995

Circular No.95/99 of HO 31.12.1999

ESI Act, 1947 IOM No. IR/1292 of HO 07.08.2009

C.L (R&A) Act, 1970 IOM No. IR/1292 of HO 27.07.2009

IOM No.IR/1232(6)/Cont.Lab of HO 27.04.2000

Formats and Check IOM No. IR/1232 of HO 26.05.2009 List–under Corporate (Sent to all Regions/Governance Regions/ SOs) and(All Labour Laws) again sent thru

Lotus mail dated 1/06/2009.

Industrial Disputes Notification of Ministry of Labour- DatedAct, 1947 Govt of India- On “Controlled 16/01/2001

Industry”

Notification on “Public Utility As and when issued.Services”

• For further clarification please contact Regional HR.

• Please also refer Circulars issued by your Region.

Notification Dated

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Following Bare Acts may please be kept at Locationsfor ready reference-

01 The Factories Act, 1948 together with State Rules

02 Payment of Wages Act, 1936

03 Payment of Gratuity Act, 1972

04 Industrial Disputes Act, 1947

05 Minimum Wages Act, 1948 together with State Rules

06 Equal Remuneration Act, 1976

07 Employees Provident Fund & Misc Prov. Act, 1952

08 E.S. I. Act, 1948 and Scheme

09 The Workmen’s Compensation Act, 1923

10 Industrial Employment (Standing Orders ) Act, 1946

11 Contract Labour (Regulation & Abolition) Act, 1970

12 The Official Secrets Act, 1923

13 Shops and Establishment Act with Rules (State)

14 Employment Exchange( Compulsory Notification of Vacancies) Act, 1959

Guidelines on Labour Laws

Documents

Transcript of Guidelines on Labour Laws