LABOUR LAWS APPLICABLE TO

SEMICONDUCTOR INDUSTRY

IN

KARNATAKA

RESOURCE PERSON

VASANTKUMAR N. HITTANAGI

JOINT LABOUR COMMISSIONER,

BANGALORE.

Date 28-01-2011

1

FACTORIES ACT, 1948

APPLICABILITY OF THE ACT

ANY PREMISES WHEREIN 10 OR MORE

PERSONS WITH THE AID OF POWER OR 20 OR

MORE PERSONS WITHOUT THE AID OF

POWER ARE/WERE WORKING ON ANY DAY

PRECEDING 12 MONTHS, WHEREIN

MANUFACTURING PROCESS IS BEING

CARRIED ON.

REGISTRATION &

RENEWAL OF FACTORIES

TO BE GRANTED BY CHIEF

INSPECTOR OF FACTORIES ON

SUBMISSION OF PRESCRIBED

FORM, FEE AND PLAN.

EMPLOYER TO ENSURE HEALTH

OF WORKERS PERTAINING TO

CLEANLINESS DISPOSAL OF WASTES

AND EFFLUENTS.

VENTILATION AND TEMPERATURE.

DUST AND FUME.

OVERCROWDING.

ARTIFICIAL HUMIDIFICATION.

LIGHTING.

DRINKING WATER .

SPITTOONS.

WELFARE MEASURES

WASHING FACILITIES.

FACILITIES FOR STORING AND DRYING

CLOTHING.

FACILITIES FOR SITTING.

FIRST-AID APPLIANCES.

CANTEENS WHEN THERE ARE 250 OR

MORE WORKERS.

SHELTERS, REST ROOMS AND LUNCH

ROOMS WHEN THERE ARE 150 OR

MORE WORKERS.

CRECHES WHEN THERE ARE 30 OR

MORE WOMEN WORKERS.

WELFARE OFFICER WHEN THERE

ARE 500 OR MORE WORKERS.

WORKING HOURS, SPREAD OVER &

OVERTIME OF ADULTS

WEEKLY HOURS NOT MORE THAN 48.

DAILY HOURS, NOT MORE THAN 9 HOURS.

INTERVALS FOR REST AT LEAST ½ HOUR ON

WORKING FOR 5 HOURS.

SPREAD OVER NOT MORE THAN 10 ½ HOURS.

EXTRA WAGES FOR OVERTIME DOUBLE THAN

NORMAL RATE OF WAGES.

RESTRICTION OF EMPLOYMENT OF WOMEN

BEFORE 6 A.M. AND BEYOND 7 P.M.

HOWEVER THE WOMEN EMPLOYEES

WORKING IN “ELECTRONICS,

TELECOMMUNICATIONS, INFORMATIC,

COMPUTER (HARDWARE & SOFTWARE)

ALLIED INDUSTRIES ” ARE GIVEN EXEMPTION

FROM THE WORKING HOURS THAT MEANS

THEY C AN WORK UPTO 10 PM. SUBJECT TO

THE FOLLOWING CONDITIONS

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i) THE WRITTEN CONSENT OF THE

WOMEN EMPLOYEE NEEDS TO BE

OBTAINED

ii) THE WOMEN EMPLOYEES CANNOT

BE MADE TO WORK OVERTIME.

iii) AFTER 10:00 P.M. THE WOMEN

EMPLOYEES SHOULD BE PROVIDED

WITH TRANSPORT FACILITY TO

REACH THEIR HOMES.

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ANNUAL LEAVE WITH WAGES

A WORKER HAVING WORKED FOR 240

DAYS @ ONE DAY FOR EVERY 20 DAYS.

ACCUMULATION OF LEAVE FOR 30

DAYS.

ANNUAL RETURNS

A COMBINED ANNUAL RETURN IN FORM 20

REQUIRES TO BE SUBMITTED WHICH GIVES

EXEMPTION FROM SUBMISSION OF SEVEN

ANNUAL RETURNS UNDER THE FOLLOWING

ENACTMENTS.

1. CONTRACT LABOUR (R & A) KARNATAKA

RULES, 1969.

2. KARNATAKA MINIMUM WAGES RULES, 1958.

3. PAYMENT OF BONUS RULES, 1975.

4. KARNATAKA PAYMENT OF WAGES RULES, 1963.

5. KARNATAKA MATERNITY BENEFIT RULES, 1963.

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PAYMENT OF BONUS ACT, 1965

APPLICABILITY

IT APPLIES TO

A FACTORY

IT CONTINUES TO APPLY EVEN IF THE NO. IS

REDUCED.

EMPLOYEE SHOULD HAVE WORKED FOR NOT LESS

THAN THIRTY DAYS IN AN ACCOUNTING YEAR. THIS

INCLUDES LEAVE.

EMPLOYEE

1) ANY PERSON (OTHER THAN APPRENTICE)

EMPLOYED ON SALARY NOT EXCEEDING RS.

10,000/- P.M.

2) INCLUDES SKILLED, UNSKILLED, MANUAL,

SUPERVISORY, MANAGERIAL, ADMINISTRATIVE,

TECHNICAL CLERICAL PERSONS.

MINIMUM BONUS

8.33% OF THE SALARY EARNED DURING

THE ACCOUNTING YEAR

MAXIMUM BONUS

20% OF THE SALARY EARNED DURING THE

ACCOUNTING YEAR.

CUSTOMARY OR INTERIOR BONUS

IF POOJA BONUS OR OTHER

CUSTOMARY BONUS IS PAID OR

A PART OF THE BONUS IS PAID

BEFORE THE DUE DATE THEN

THE BALANCE BONUS ONLY HAS TO

BE PAID ON THE DUE DATE.

TIME LIMIT FOR PAYMENT OF BONUS

WITHIN EIGHT MONTHS FROM THE

CLOSE OF THE ACCOUNTING YEAR.

EXTENSION OF EIGHT MONTHS

PERIOD UPTO 2 YEARS FOR SUFFICIENT

REASONS IS POSSIBLE.

MAINTENANCE OF REGISTERS

FORM A, B & C REGISTERS ARE TO BE

MAINTAINED.

RETURNS

FORM D TO BE SUBMITTED WITHIN 30 DAYS

AFTER THE EXPIRY OF TIME-LIMIT SPECIFIED FOR

PAYMENT OF BONUS.

THE MATERNITY BENEFIT ACT, 1961 AND

KARNATAKA RULES, 1966

THE ACT APPLIES TO

FACTORY

MATERNITY BENEFIT

MEANS

PAYMENT OF AVERAGE DAILY WAGE OF THE

PERIOD OF ABSENCE PRECEDING THE DAY

OF DELIVERY, THE ACTUAL DAY OF

DELIVERY AND PERIOD OF ABSENCE

IMMEDIATELY FOLLOWING THE DELIVERY

DAY

QUALIFYING SERVICE FOR ENTITLEMENT OF

MATERNITY BENEFIT

A WOMAN SHOULD HAVE WORKED FOR NOT

LESS THAN EIGHTY DAYS IN THE TWELVE

MONTHS IMMEDIATELY PRECEEDING THE

DATE OF HER EXPECTED DELIVERY.

MATERNITY BENEFIT: MAXIMUM PERIOD ENTITLEMENT

i) TWELVE WEEKS i.e. EIGHTY FOUR DAYS.

ii) SIX WEEKS i.e. FORTY TWO DAYS PRECEDING

THE DATE OF EXPECTED DELIVERY.

iii) SUCCEEDING THE DATE OF DELIVERY: SIX

WEEKS i.e. FORTY TWO DAYS INCLUDING DAY

OF DELIVERY.

PAYMENT OF MEDICAL BONUS

IF PRE-NATAL CONFINEMENT AND

POST-NATAL CARE IS NOT PROVIDED BY THE

EMPLOYER FREE OF CHARGE THEN THE

WOMAN ENTITLED TO MATERNITY BENEFIT

IS ALSO ENTITLED TO RECEIVE A MEDICAL

BONUS OF RS. TWO THOUSAND FIVE

HUNDRED RUPEES.

NURSING BREAKS

TWO NURSING BREAKS OF FIFTEEN MINUTES

DURATION FOR NOURISHMENT OF THE CHILD UNTIL

IT ATTAINS THE AGE OF FIFTEEN MONTHS IS TO BE

ALLOWED TO A WOMAN WHO RETURNS TO DUTY

AFTER THE DELIVERY OF THE CHILD. FIVE TO

FIFTEEN MINUTES DURATION SHALL BE ALLOWED

FOR THE PURPOSE OF JOURNEY TO AND FROM THE

CRECHE.

THIS IS IN ADDITION TO INTERVAL OF REST

ALLOWED TO THE WOMAN.

THE CONTRACT LABOUR

(REGULATION AND ABOLITION)

ACT, 1970 AND CONTRACT

LABOUR (REGULATION AND

ABOLITION) KARNATAKA

RULES, 1974.

THIS ACT APPLIES TO EVERY

ESTABLISHMENT IN WHICH

MORE THAN TWENTY

WORKMEN ARE EMPLOYED ON

ANY DAY OF THE PRECEDING

TWELVE MONTHS AS CONTRACT

LABOUR.

EVERY PRINCIPAL EMPLOYER TO

REGISTER THE ESTABLISHMENT.

CONTRACTOR TO OBTAIN LICENCE

ISSUED BY THE LICENSING OFFICER.

A CANTEEN SHALL BE PROVIDED WHERE

THE NUMBER OF CONTRACT LABOUR IS

ONE HUNDRED OR MORE.

THE CONTRACTOR SHALL PROVIDE

DRINKING WATER, LATRINES, URINALS,

WASHING FACILITIES, FIRST-AID

FACILITIES.

IF ANY AMENITY VIZ., CANTEEN,

RESTROOMS, DRINKING WATER,

LATRINES AND URINALS, WASHING

FACILITIES AND FIRST AID

FACILITIES IS NOT PROVIDED BY THE

CONTRACTOR THEN SUCH AMENITY

SHALL BE PROVIDED BY THE

PRINCIPAL EMPLOYER.

A CONTRACTOR SHALL BE

RESPONSIBLE FOR PAYMENT OF

WAGES TO EACH CONTRACT

WORKER.

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THE PRINCIPAL EMPLOYER SHALL

NOMINATE A REPRESENTATIVE TO BE

PRESENT AT THE TIME OF

DISBURSEMENT OF WAGES BY THE

CONTRACTOR.

IN CASE THE CONTRACTOR FAILS TO

MAKE PAYMENT OF WAGES WITHIN

THE PRESCRIBED PERIOD OR MAKE

SHORT PAYMENT ,THEN THE PRINCIPAL

EMPLOYER SHALL BE LIABLE TO MAKE

PAYMENT OF WAGES IN FULL OR THE

UNPAID BALANCE DUE TO THE

CONTRACT LABOUR .

EMPLOYEES’ STATE INSURANCE ACT & THE SCHEME, 1948

APPLICABILITY

THE ACT APPLICABLE TO FACTORIES USING

POWER & EMPLOYING 10 OR MORE PERSONS

AND TO NON- POWER USING MANUFACTURING

UNITS AND ESTABLISHMENTS EMPLOYING 20 OR

MORE PERSON UPTO RS. 15,000/- PER MONTH

w.e.f. 1.05.2010.

ELIGIBILITY

ALL EMPLOYEES DRAWING WAGES

/ SALARY UPTO RS. 15,000/- PER MONTH

ENGAGED EITHER DIRECTLY OR

THRU CONTRACTOR ARE COVERED

UNDER THE SCHEME.

CONTRIBUTION PERIOD

1ST APRIL TO 30TH SEPTEMBER , AND

1ST OCTOBER TO 31ST MARCH.

BENEFITS

ESI SCHEME TAKE CARE OF FOLLOWING

NEEDS OF THE MEMBERS:

MEDICAL, SICKNESS, EXTENDED SICKNESS

FOR CERTAIN DISEASES, ENHANCED

SICKNESS, DEPENDENTS MATERNITY,

BESIDES FUNERAL EXPENSES,

REHABILITATION ALLOWANCE, MEDICAL

BENEFIT TO INSURED PERSON AND HIS OR

HER SPOUSE.

SCHEME OF CONTRIBUTION

EMPLOYER’S EMPLOYEE’S

OF WAGES / SALARY

4.75% 1.75%

MANNER AND TIME LIMIT FOR MAKING PAYMENT OF CONTRIBUTION

THE TOTAL AMOUNT OF CONTRIBUTION

(EMPLOYEE’S SHARE AND EMPLOYER’S SHARE) IS

TO BE DEPOSITED WITH THE AUTHORISED BANK

THROUGH A CHALLAN IN THE PRESCRIBED FORM

IN QUADRUPLICATE ON OR BEFORE 21ST OF

MONTH FOLLOWING THE CALENDAR MONTH IN

WHICH THE WAGES FALL DUE.

THE KARNATAKA INDUSTRIAL

ESTABLISHMENTS

(NATIONAL FESTIVAL HOLIDAYS) ACT, 1963

AND

KARNATAKA RULES, 1964

HOW MANY HOLIDAYS IN A CALENDAR YEAR

TO BE GIVEN TO WORKERS

I. FIVE NATIONAL HOLIDAYS WITH WAGES.

II. FIVE FESTIVAL HOLIDAYS WITH WAGES.

THE NATIONAL HOLIDAYS

1. REPUBLIC DAY : 26TH JANUARY

2. MAY DAY : 1ST MAY

3. INDEPENDENCE DAY : 15TH AUGUST

4. GANDHI JAYANTHI : 2ND OCTOBER

5. KANNADA RAJYOTSAVA DAY : 1ST NOVEMBER

CAN AN EMPLOYEE WORK ON ANY OF THE

NATIONAL OR FESTIVAL HOLIDAYS

i. YES.

ii. IN LIEU OF THIS, THE EMPLOYEE AT HIS

OPTION IS ENTITLE TO

(I) TWICE THE WAGES; OR

(II) WAGES FOR SUCH DAY OF WORK AND

TO AVAIL HIMSELF OF A SUBSTITUTED

HOLIDAY WITH WAGES ON ANY

OTHER DAY.

POLLING DAY HOLIDAYS

1. LOK SABHA AND ASSEMBLY POLLING DAY

2. EMPLOYEE SHOULD BE ALLOWED A DAY’S PAID HOLIDAY ON THAT DAY TO CAST HIS VOTE.

3. HIS NAME SHOULD BE INCLUDED IN THE VOTERS LIST.

EMPLOYEES’ PROVIDENT FUNDS & MISC.

PROVISIONS ACT

& THE SCHEMES, 1952

APPLICABILITY

EVERY ESTABLISHMENT WHICH IS A FACTORY

ENGAGED IN ANY INDUSTRY SPECIFIED IN

SCHEDULE 1 AND IN WHICH 20 OR MORE

PERSONS ARE EMPLOYED.

ELIGIBILITY

ALL THE EMPLOYEES (INCLUDING

CASUAL, PART TIME, DAILY WAGE,

CONTRACT ETC.) OTHER THAN AN

EXCLUDED EMPLOYEE ARE REQUIRED

TO BE ENROLLED AS MEMBERS OF THE

FUND ON THE DAY, THE ACT COMES

INTO FORCE IN SUCH ESTABLISHMENT.

BENEFITS

EMPLOYEES’ PROVIDENT FUND SCHEME TAKES CARE OF FOLLOWING NEEDS OF THE MEMBERS.

(i) RETIREMENT;

(ii) MEDICAL CARE;

(iii) HOUSING ;

(iv) CERTAIN FAMILY OBLIGATIONS;

(v) EDUCATION OF CHILDREN;

(vi) FINANCING OF INSURANCE POLICES.

CLARIFICATION ABOUT

CONTRIBUTION

AFTER REVISION IN WAGE CEILING

RS. 5000 TO RS. 6500 w.e.f. 1.6.2001 PER

MONTH , THE GOVERNMENT WILL

CONTINUE TO CONTRIBUTE 1.16%

UPTO THE ACTUAL WAGE OF

MAXIMUM RS. 6500 PER MONTH

TOWARDS EMPLOYEES’ PENSION

SCHEME. THE EMPLOYER’S SHARE IN

THE PENSION SCHEME WILL BE RS. 541

w.e.f. 1.6.2001.

CENTRAL EMPLOYER’S EMPLOYEE’S

GOVT.’S

* SUBJECT TO MAX. RS. 541 AND EXCESS OF RS. 541

ALONGWITH 3.67% GOES INTO EPF SCHEME.

1.16%

SCHEME OF CONTRIBUTION

8.33% 0.5% 3.67% 12%

EMPLOYEE’S PENSION SCHEME

INSURANCE SCHEME

EMPLOYEE’S PROVIDENT FUND

SCHEME

PAYMENT OF GRATUITY ACT, 1972

APPLIES TO

FACTORIES

EMPLOYEE SHOULD HAVE WORKED FOR

ATLEAST 5 YEARS.

UPON RESIGNATION, RETIREMENT

GRATUITY PAYABLE IS @ FIFTEEN DAYS

LAST DRAWN SALARY MULTIPLIED BY

NO. OF YEARS OF SERVICE

MAX GRATUITY RS. 10 LAKHS

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EMPLOYEES COMPENSATION ACT, 1923

ANY EMPLOYEE WHO MEETS WITH AN

ACCIDENT DURING THE COURSE OF

EMPLOYMENT AND ARISING OUT OF IT

RESULTING IN DEATH OR PERMANENT /

PARTIAL DISABILITY IS REQUIRED TO

BE PAID COMPENSATION AS PER THE

ACT.

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THANK YOU