Statutory Compliances 08.10.2012
Transcript of Statutory Compliances 08.10.2012
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HR Department, Western Region
Statutory Compliances
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Statutory Compliances For HR
Contract Labour (R&A) Act
Employees State Insurance Act
Employees Provident Fund & MP Act
Payment of Gratuity Act
The Payment Of Wages Act
The Minimum Wages Act
The Maternity Benefit Act
The Payment Of Bonus ActWorkmens Compensation Act
Factories Act, 1948
Shops & Establishments Act
Gaurav Kapil, HR Department, Western Region
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A Few Definitions
Who is Contractor: Person who undertakes to produce a
given result for the establishment, other than mere supply
of goods or articles of manufacture through contract
labourers directly or through sub-contractor, for any workof establishment.
Why we need Contract Labourer: There are several
fields of employment where it is not otherwise possible tohave continuous employment as such, except the
necessities of the situation, the Act has provided for
continuation & thereby regulation of contract labour.
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Contract Labour (R&A) Act, 1970
Objective is to regulate the employment of contract labour in certainestablishments
Applicability
To establishment employing 20 or more workmen as contract labour
To contractor employing twenty or more workmen
Registration of Establishments & Licensing of Contractors
The establishments covered under the Act are required to be registered asprincipal employers with the appropriate authorities
Every contractor is required to obtain a licence and not to undertake orexecute any work through contract labour except under and in accordancewith the licence issued in that behalf
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Contract Labour (R&A) Act, 1970
Welfare & health of the contract labourers
Establishment Canteens, rest rooms and arrangements for sufficient supply ofwholesome drinking water, latrines and urinals, washing facilities and firstaid facilities (made obligatory)
In cases of failure on the part of the contractor to provide these facilities, thePrincipal Employer is liable to provide the same.
Section 10
(a) The work is perennial and must go on from day to day;
(b) The work is incidental to and necessary for the work of the factory; (c) The work is sufficient to employ considerable number of whole time
workmen; and
(d) The work is being done in most concerns through regular workmen.
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DOs Donts
Timely payment of wages (by 7 day offollowing month).
Issue any character/experience certificateto any contract labour.
Witness of payment by your
authorised/nominated officer andendorsement/certificate on wage sheet
Allow to use your address in his
correspondence. At the most he maywrite/show as client address.
Payment of Minimum Wages or the ratesfixed by agreement /settlement / award.
Increase number of labours / induct newlabours without justification and approvalof state/regional head.
Obtain copy of Attendance & Wage sheetof each month duly signed by theContractor or his Authorised Manager withseal.
Issue any authorisation letter for any typeof job / entry into any other organizationas rep of IOCL /your location
That Photo identity card issued to thecontract labour must contain the
name, address and signature of thecontractor.
Make any direct payment to contractlabours and especially on imprest voucher.
Take authority letter from Contractornotifying name of his Manager/Representative who will be
supervising/making payment etc on hisBehalf.
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DOs Dont s
Obtain a copy of Income Tax details andTrade Licence.
Obtain copy of Police Verification report ofall Contract Labours.
Always mention Regn number of locationin all correspondence.
All above mentioned Record to be kept inOriginal for last 3 years.
Contractors are also required to displaymany Notices, so insist on Display.
Obtain copies of Challans of PF/ESI every
month from contractor.
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Contract Labour (Regulation and Abolition) Act, 1970
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Contract Labour (Regulation and Abolition) Act, 1970
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Contract Labour (Regulation and Abolition) Act, 1970
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Employees State Insurance Act, 1948
Was originally applicable to non-seasonal factories using power and employing 20 or more
persons; but it is now applicable to non-seasonal power using factories employing 10 or more
persons and non-power using factories employing 20 or more persons
All the employees in the factories or establishments (manufacturing process) to which the Act
applies shall be insured under this Act
The contribution comprise of employers contribution and employees contribution at a specified
rate
Contribution rate : 1.75% - employees
4.75% -employers
The ceiling 15,000/- gross salary. After reaching the ceiling one will be exempted.
Employer is liable to contribute & deduct specified rate of amount and submit it to the
Corporation within 21 days.Two contribution periods each of six months:
1st April to 30th Sept 1st Oct. to 31st March
Two corresponding benefit periods of six months :
1st January to 30th June 1st July to 31st December
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Payment of Gratuity Act, 1972
Gratuity is an amount given to employees by employer when
they leave the job after completing five years or minimum 240
days per year or after retirement.
Gratuity is payable under the payment of wages act.
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.
Gratuity is calculated as Basic + DA divided by 26 * No of years
of service *15
Display of Abstract (Form U)
To keep copies of Declaration Forms signed by employees and
employer
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The Payment of Wages Act 1936
It is a central legislation which applies to the persons employed in the factories
and to persons employed in industrial or other establishments
This Act does not apply on workers whose wages payable in respect of a wage
period average Rs. 1600/- a month or more.
This Act has been enacted with the intention of ensuring timely payment ofwages to the workers without unauthorized deductions.
The salary in factories/establishments employing less than 1000 workers is
required to be paid by 7th of every month and in other cases by 10th day of
every month.
A worker, who either has not been paid wages in time or an unauthorizeddeductions have been made from his/her wages, can file a Claim either directly
or through a Trade Union or through an Inspector under this Act.
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The Minimum Wages Act, 1948
This act provides for fixing minimum rates of wages.Wages shall mean all remuneration payable to an employed person on the fulfillment of the contract
employment and includes HRA.
It Includes
(i) a basic rate of wages and special allowance call the cost of living allowance
(ii) a basic rate with or without cost of living allowance plus any concession on the supply of
essential commodities.It excludes
(i) The value of rent free accommodation, supply of light, water, medical .....
(ii) Contributions paid by the employer towards the PF or any scheme of social insurance
(iii) Travelling allowance / Travelling concession
(iv) Gratuity
The appropriate government may fix-:A minimum rate of wages for time work ("a minimum time rate").
A minimum rates of wages for piece work ("a minimum piece rate").
A minimum rate of wages on a time work basis ("a guaranteed time rate")
A minimum rate of overtime work done (a overtime rate")
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The Maternity Benefit Act, 1961
To regulate employment of women for certain periods before and after childbirth and to provide for maternity benefit.
Payment of maternity benefit shall apply to women workers to whom ESI Act
does not apply.
The Act applies to all establishments in which ten or more people are
employed.
The maternity benefit shall be at the rate of average daily wage for the period
of actual absence. The maximum period of entitlement shall be 12 weeks of
which not less than 6 weeks shall precede the expected date of delivery.
Maternity benefit shall be payable to employee or any other persons as per the
nomination.
The Amount of benefit upto the period of expected delivery shall be paid in
advance. The balance due for the subsequent period shall be paid within 48
hours from delivery of child.
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The Payment of Bonus Act, 1965
The Payment of Bonus Act imposes statutory liability upon the employers of
every establishment covered under the Act to pay bonus to their employees.
It provides for payment of minimum and maximum bonus and linking the
payment of bonus with the production and productivity
The Act applies to every factory where 10 or more workers are working andevery other establishment in which 20 or more persons are employed, on any
day during an accounting year
Every employee receiving salary or wages upto Rs. 4,500 p.m. and engaged in
any kind of work whether skilled, unskilled, managerial, supervisory etc. is
entitled to bonus for every accounting year if he has worked for at least 30working days in that year
Contractor may pay bonus to his contract labourers
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The Shops And Establishments Act
Registration of a shop or an establishment under the Act is
generally compulsory in all the States.
Registration should be applied for in the prescribed form
alongwith the prescribed fee to the Chief Inspector. In
case of new establishments, within 30 days from the date
on which the establishment commences the work, a
statement shall be sent to the Inspector concerned who on
receipt of the same shall register the establishment in such
manner.
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Provisions
Working Hours: Daily & Weekly
Working Spread including Break Period
Overtime Hours: Daily, Weekly & Quarterly
Weekly Off
Applicability of Gratuity
Provision for Leave Period
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Statutes
Bombay Shops and Establishments Act 1948
Maharashtra Shops and Establishment Rules, 1961
Goa, Daman and Diu Shops and Establishments Act, 1973
Gujarat Shops and Establishments (Insurance) Act, 1980
Madhya Pradesh Shops and Establishments Act, 1958
Chhattisgarh Shops and Establishments Act. 1958
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Registers
The Factories Act, 1948Employee Muster RoleAttendance RegisterTime cardRegister of accident and dangerous occurrencesRegister of adult workersBound Inspection Book
Register of overtime paymentsRegister of factories.Record of lime washing and paintingParticulars of rooms in the factory.Register of compensatory holidaysRegister of Leave with Wages
The Payment Of Wages Act, 1936
Consolidated Register of Fines, Deductions andAdvances.Register of wages
Equal Remuneration Act, 1976Details of workers in Form D
CL(R&A) ActRegister of contractorsBy Contractors
Register of persons employedMuster rollWage register or wage cum muster rollWage slip
Register of deductionsRegister of deductionsOvertime register
ESI Act, 1948Employees Register of Contributions.Accident RegisterInspection Book
EPF&MP ActContribution cardEligibility RegisterProvident Fund ledgerInspection Book
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Datewise Name of the Statute Form/ Rule Return/ Compliance To be sent toJanuary 15th Factories Act, 1948 Refer to State
Rules
Annual Return Chief Inspector / Director
or Competent Authority
January 21st Maternity Benefit Act,
1961
LMNO (Rule 16
(1)
Annual Return & payment
details on 31st Dec
Competent Authority
under the Act.
January 30th
Contract Labour (R&A)Act, 1970 & Rules
XXIV [Rule 82(1)]
Half yearly Return bycontractor (in duplicate)
Concerned Licensingofficer (ALC in our case)
January 31st Employees State Insurance
Act, 1948 & Rules
01-A (ESI
Regulation 10C)
Annual information about
factory
Concerned ESI Regional
office
February 1st Payment of Wages Act,
1936
V (Rule 18) Annual Return Regional Labour
Commissioner
February 15th Contract Labour (R&A)
Act, 1970 & Rules
XXV [Rule 82 (2)]Annual Return by
Principal Employer
Concerned licensing
officer ( ALC in our case)
April 25th Employees Provident
Funds & MP Act, 1952
3A/6A Annual Return Concerned Regional
Officer
May 12th Employees State Insurance
Act, 1948 & Rules
6 (Sec 44,
Regulation 26)
Quadruplicate along with
challans. Monthly Return
along with cheque
Concerned ESI office
from scheduled bank
July 15th Factories Act, 1948 Refer to StateRules
Half yearly Return Chief Inspector / Directoror competent authority
July 30th Contract Labour (R&A)
Act, 1970 & Rules
XXIV Half-yearly Return by the
contractor
ALC ( C )
October 31st Contract Labour (R&A)
Act, 1970 & Rules
VII [Rule 29 (2)] Application by contractor
for renewal of license
ALC (C )
November 12th Employees State Insurance
Act, 1948 & Rules
6 (Sec 44 &
Regulation 25
Summary of contribution
in quadruplicate challans.
Concerned local office/
ESI Regional office
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Time limit Act Form/
Regulation
Name of Return /Compliance To be sent to
Within 10 days
from the date of
appointment
The Employees
State Insurance Act,
1948
1 & 3
(Regulation 11,12
&14)
Declaration Form & Return of
Declaration
ESI Regional
office
January 30 The Contract Labour(R&A) Act, 1970
XXIV Half Yearly Return- ByContractor
Assistant LabourCommissioner
February 15 The Contract Labour
(R&A) Act, 1970
XXV Annual Return-By Principal
Employer
Assistant Labour
Commissioner.
February 15 The Payment of
Wages Act, 1936
IV Annual Return Chief Inspector of
Factories
Before May 15th &
Before 11thNovember
The Employees
State Insurance Act,1948
6 Summary of contributions in
quadruplicate, half yearly inOctober to March and April to
September after the expiry of
contribution period. To be
submitted within 42 days
ESI RegionalOffice.
July 15 The Factories Act 35 Half Yearly Return Chief Inspector of
Factories
July 30 The Contract Labour(R&A) Act, 1970
XXIV Half Yearly Return:By Contractor
Registering &Licensing Officer
Before 11th
November
Insurance Act 6 Return of contributions in
quadruplicate from April to
September to be submitted within
42 days
ESI Regional
Office
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Thank You