indian acts presentation

8/14/2019 Indian Acts Presentation

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PRESENTATION ONPRESENTATION ONACTSACTS


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Flow of PresentationFlow of Presentation

Minimum Wages Act

Workers Compensation Act

ESIC Maternity Benefit Act

Bonus Act

PF Act Gratuity Act

Superannuation Act


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What is Act?What is Act?

Need to study ActNeed to study Act


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MINIMUM WAGES ACT,MINIMUM WAGES ACT,

19481948

Need of the ActNeed of the Act

Workers Organization were poorly developed

Bargaining power was low

Object of the ActObject of the Act

Fixing minimum wages

Prevent exploitation of unorganized labor

`


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Features of the ActFeatures of the Act

Minimum wages fixed by Government

The Act is not exhaustive

Revision of wages are done at intervals not exceeding five years

Act is binding on Employers

Wages are fixed for

Minimum Time rate

Minimum Piece rate

Overtime rate Sec 3


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Fixing Of Working HoursFixing Of Working Hours

Constitute a normal working day inclusive of one or more

specified intervals.

Provide for a day of rest in every period of seven days withremuneration.

Provide for payment for work on a day of rest at a rate not less

than the overtime rate. Sec. 13


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Procedure to make ClaimsProcedure to make Claims

Application to the Authority appointed under the act

Application can be made by employee, legal

practitioner or official of registered trade union

Application to be made within six months

Authority can award compensation up to 10 times


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PENALTIES FORPENALTIES FOR

OFFENCESOFFENCES

OFFENCE PUNISHMENT

For paying less than minimum

rates of wages

Imprisonment upto 6 months or

with fine upto Rs.500/-

For contravention of any

provisions pertaining to fixinghours for normal working day etc.

Imprisonment upto 6 months or

with fine upto Rs.500/-

Sec 20


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WORKMENSWORKMENS

COMPENSATION ACT, 1923COMPENSATION ACT, 1923


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BACKGROUND OF THE ACTBACKGROUND OF THE ACT

Old but important Act

Introduced as kind of Social Security Scheme

The Act compensates the workman foremployment injury

In case of death of workman his dependantsgets compensation


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Applicability of the actApplicability of the act

Who is liable to pay ? Who is entitled to receive?

Kind of injuries

1. Death2. Permanent Total Disablement

3. Permanent Partial Disablement

4. Temporary Total Disablement

5. Temporary Partial Disablement


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Personal injury caused by accident arose outof and in the course of employment

Not necessary workman should be workingin factory Schedule II

Driver in Government Employment

Apprentice is a workman Injury when gone to fetch water

Died after drinking water

Truck driver killed by miscreants to lootconsignment


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Circumstances in which employer is not liable to paycompensation

Injury does not result in total or partial disablement notexceeding 3 days

Injury is caused by drink or drugs

Disobedience to towards safety measures


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Amount of compensationAmount of compensation

Injury resulted in DeathInjury resulted in Death Amount equal to 50% of monthly wages of deceased

workman figure from 228.5 to 99.37 or amt of80,000.

If the monthly wages exceeds Rs.4000, it shall be

deemed to be 4000.

Injury results in Permanent total disablementInjury results in Permanent total disablement Amount equal to 60% of monthly wages of deceased

workman figure from 228.5 to 99.37 or amt of90,000.

If the monthly wages exceeds Rs.4000, it shall bedeemed to be 4000.


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Injury results in Permanent Partial disablementInjury results in Permanent Partial disablement

Only person causing injury as per injury specified in Part-II of Schedule I mentioned in Sec4(1)(b) is entitled toreceive a percentage as per Injury resulted inPermanent total disablement.


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Time for payment of compensationTime for payment of compensation

Must pay as soon as it falls due. In case of delay beyond one month has

to pay simple interest rate of 12%p.a (sec 4-

A) Payment either in half-monthly or a

lumpsum

Payment in case of death Not directly to his dependents

Employer has to deposit the amt withcommissioner


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The Employees StateThe Employees State

Insurance Act, 1948Insurance Act, 1948


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1923, Workmens Compensation Act.

A Social Security Mechanism for industrial workers.

Confined to Compensation for injury caused byaccident.

Need for a Social Insurance Scheme for industrialworkers with added benefits.


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OBJECT OF THE ACTOBJECT OF THE ACT

To secure sickness, maternity, disablement,

and medical benefits to employees offactories and establishments and

dependent's benefits to the dependants

of such employees


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APPLICABILITY OF THE ACTAPPLICABILITY OF THE ACT

The Act applies to

All factories other than Seasonal factories.

Factory, as defined under the act,

Any premises employing 10 or more persons and in which

manufacturing process is carried on with the aid of power.

OR

Any premises whereon 20 or more persons are employedwherein the manufacturing process is not aided with power.

The existing wage limit for coverage under this act is Rs 10,000

pm.


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EMPLOYERS & EMPLOYEESEMPLOYERS & EMPLOYEES

CONTRIBUTIONSCONTRIBUTIONS

The following contributions are made to the

ESI Corporation.

Employers Contribution - 4.75% of wages

Employees Contribution - 1.75% of wages

CONTRIBUTION PERIOD AND


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CONTRIBUTION PERIOD ANDBENEFIT PERIOD

Contribution period1st April to 30th Sept.1st Oct. to 31st March

Corresponding Cash Benefit period1st January of the following year to 30th

June.1st July to 31st December of the year

following


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BENEFITSBENEFITS1.1. Sickness Benefit

2. Maternity Benefit

3. Disablement Benefit

4. Dependents Benefit

5. Medical Benefit

6. Funeral Expenses


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Sickness BenefitSickness Benefit

Standard benefit rate.

Insured person (IP) can avail the benefit if he has paid

contribution for more than 78 days in the contributionperiod.

Not available for first 2 days of sickness.

Max period 91 days in a year


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Disablement BenefitDisablement Benefit

An IP suffering from temporary disablement as aresult of employment injury, can avail of this benefit.

An IP suffering from permanent disablement isentitled to receive disablement benefits for the wholeof his life.

No Condition of payment of any contribution forreceiving disablement benefits..


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Dependents Benefits.Dependents Benefits.

In case of death of an IP due to employment

injury, his widow & children or other relatives

who are wholly or partly dependent on the

deceased insured persons earnings are entitledto receive the dependents benefits.


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Medical Benefit

Entitles the IP to receive medical treatmentwhen sick.

When the benefit is extended to the family of

the insured person, it covers i. Husband or wife of the insured employee

ii. Minor legitimate or Adopted children of the

IP dependent upon him.iii. The dependent parents of the IP


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Funeral ExpensesFuneral Expenses

This is a payment given to the person who

meets the actual funeral expenditure of the IP.

Maximum permissible limit Rs 2500.


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Maternity BenefitMaternity Benefit An insured person can avail of periodical payments

called Maternity benefits in case ofi. Confinement, Miscarriage or medical termination

of pregnancy .

Or

ii. Sickness arising out of pregnancy, confinement,premature birth of baby or miscarriage or medicaltermination of pregnancy.

IP can avail of benefits if contribution is paid for

not less than 70 days in immediately precedingcontribution periods.

The benefit payable is generally twice the standardbenefit rate or roughly equal to average daily wage.


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TriviaTrivia

Can an insured person avail of two or more

benefits at the same time?

Is it permissible for a person to draw a benefit

of the same kind under ESIC and also under

any other act?

Is a Petrol Pump with more than 10 employees

a factory as per the act?


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MATERNITY BENEFIT ACT,MATERNITY BENEFIT ACT,

19611961Objective of the Act

To provide maternity benefit to women worker

To regulate employment of women workerbefore and after the childs birth


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Coverage of the Act

All women employees either employed directly

or through contractor

Conditions for eligibility of benefits

Should have worked for at least 80 days in the

12 months immediately proceeding the date of

her expected delivery Sec. 5.


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Cash Benefits

Leave with average pay for six weeks before the delivery.

Leave with average pay for six weeks after the delivery.

A medical bonus of Rs.25 if the employer does not provide free

medical care to the woman.

An additional leave with pay up to one month if the woman shows

proof of illness due to the pregnancy, delivery, miscarriage, or

premature birth.

In case of miscarriage, six weeks leave with average pay from the

date of miscarriage.


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Non Cash Benefits/Privilege

Light work for ten weeks before the date of her expected delivery, if she asks for it.

Two nursing breaks in the course of her daily work until the child is 15 months old.

No discharge or dismissal while she is on maternity leave.

No change to her disadvantage in any of the conditions of her employment while

on maternity leave.

Pregnant women discharged or dismissed may still claim maternity benefit from the

employer.

Exception : Women dismissed for gross misconduct lose their right under the Act for

Maternity Benefit


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Leave for Miscarriage

Leave with wages at the rate of maternity benefit, for a period

of six weeks immediately following the day of her miscarriage

Leave for Tubectomy Operation Entitled to leave with wages at the rate of maternity benefit for

a period of two weeks immediately following the day of her

tubectomy operation.


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Failure to Display Extract of ActFailure to Display Extract of Act

Imprisonment from three months to one year

Fine of maximum of Rs 5,000


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The Payment of BonusThe Payment of Bonus

Act, 1965Act, 1965


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Statutory Right to share in the profits


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OBJECT OF THE ACT

To maintain peace & Harmony betweenLabour & Capital

To share the prosperity of theestablishment reflected by the profitsearned by contributions.


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APPLICABILITY OF THE ACTAPPLICABILITY OF THE ACT

To every factory & other establishmentemploying 20 or more persons

Who are entitled to be paid bonus? Employee drawing salary or wage upto 3500

Minimum working days are 30 in a year.

Seasonal Worker can get bonus

For Calculation only Basic salary & wage s+DA is considered.


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MINIMUM & MAXIMUM BONUSMINIMUM & MAXIMUM BONUS

Minimum Bonus Payable Bound to pay 8.33% of the salary or wage or

Rs.100 whichever is higher.

Whether there is any allocable surplus or not.

Maximum Bonus Payable

When Allocable surplus exceeds the amount ofminimum bonus payable.

20% of the salary or wage.


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Available & allocable surplusAvailable & allocable surplus

Available Surplus Bonus is linked with Profits Gross Profit in manner specified in sec 4. Deduction of sums referred in sec6 The balance available is Available Surplus

Allocable Surplus It is %age of available surplus calculated acc.

to sec 2(4) When Allocable surplus exceeds the mini.

Bonus payable then max. 20% of salary orwage has to be paid as max. bonus.

SET ON & SET OFF OF ALLOCABLESET ON & SET OFF OF ALLOCABLE


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SET ON & SET OFF OF ALLOCABLESET ON & SET OFF OF ALLOCABLE

SURPLUSSURPLUS

SET OFF When in an year there is no available surplus,

or the allocable surplus falls short of the amtof mini. bonus payable then such amt or

deficiency shall be carried forward for beingset off in succeeding year.

SET ON When an allocable surplus exceeds the

amount of max. bonus payable, then such amtmay be carried forward for being set on insucceeding year, to be utilised for purpose ofpayment of bonus.


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TIME LIMIT FOR PAYMENT OF BONUSTIME LIMIT FOR PAYMENT OF BONUS

IF THERE IS NOT DISPUTE ABOUT PAYMENTOF BONUS, THEN IT MUST BE PAID WITHINPERIOD OF 8 MONTHS FROM CLOSE OF

A/CING YEAR.

IF THERE IS DISPUTE THEN IT MUST BE PAIDWITHIN ONE MONTH FROM DATE OF AWARD

IN RESPECT OF SUCH DISPUTE BECOMESENFORCEABLE.


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Employees ProvidentEmployees Provident

Fund and MiscellaneousFund and MiscellaneousProvisions Act, 1952Provisions Act, 1952

Ab t th A t


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About the Act Provide social security to industrial workers

Provides retirement and old age benefits:

PF, Superannuation pension, Invalidation pension, Family pension &Deposit linked insurance

Wider terminal Benefits in contingencies

VRS, retrenchment, closure, retirement due to incapacity to work

Applicability of the Act Every factory employing 20 or more persons Applies to any industry, once enacted continues to operate

Based on financial position, Central Gov. makes exemptions

Not applicable to Gov. belonging or set up and Co-operative Societies:for not less than 50 employees


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The EmployeesThe Employees

Provident FundsProvident FundsScheme, 1952Scheme, 1952


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ContributionContributionBy Employer and Employee: 12% of the employees wages and 10% of wages in case of

Establishments less than 20 persons Sick industrial company Loss making companies amounting to entire net worth In Jute, Beedi, Coir & other spinning sector, Gum, Brick industry

Contributions are deducted on Basic+DA+Retaining Allw. PF contribution limited for employees earning Rs. 6500+

Provident Fund accumulations are invested in GovernmentSecurities, 7-year national saving certificates or post officetime deposit schemes.


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Employees FamilyEmployees Family

Pension Scheme, 1995Pension Scheme, 1995

E l ' P i S h


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Employees' Pension Scheme1995

Came into force from 16th November 1995

Conceived as a Benefit defined Social Insurance Scheme

Repealed and replaced the erstwhile Family Pension Scheme,1971

The new Pension Scheme derives its financial resource by partial diversion from the Provident Fund contribution, the rate being 8.33% in lieu of 2.33% against the old ceased scheme

Central Gov. contributes @ 1.16%/Rs 500 towards pension

Members Pension =Members Pension =

Pensionable salary x ( Pensionable service+2)/70Pensionable salary x ( Pensionable service+2)/70

Eli ibilit d B fit


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Eligibility

Minimum 10 years of service Attainment of 58 years

Benefits Payment of monthly pension under

following contingencies Retirement Permanent total disablement Death during service Children pension Death after retirement/total

disablement Orphan pension

Eligibility and Benefits


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Employees Deposits-Employees Deposits-

Linked InsuranceLinked InsuranceSchemes,1976Schemes,1976

Emplo ees Deposit L I S 1976Employees Deposit L I S 1976


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Employees Deposit-L.I.S., 1976Employees Deposit-L.I.S., 1976

Came into force from 1st August, 1976

Provides for life insurance benefits Applies to employees of all factories/establishments

Employers contributions @ of 0.5% of the pay of the employees and

@ 0.01% by way of administrative charges subject to a minimum ofRs.2 per month of the total wages

Benefits: Death while in service lumpsum to nominee Insurance Amt = Avg. Bal in the PF a/c during the preceding 12 months

Average balance > Rs.35,000 the family will receive 25% of theamount i.e. excess of Rs.35,000 , Subject to a ceiling of Rs.60,000


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The Payment ofThe Payment ofGratuity Act, 1972Gratuity Act, 1972


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About the ActAbout the Act

A deserving reward for a long meritorious serviceA deserving reward for a long meritorious service

Entitlement to an employee after completion of 5 yearsEntitlement to an employee after completion of 5 years

In case of sudden demise, employees heirs get the gratuityIn case of sudden demise, employees heirs get the gratuity

Rate of Gratuity is 15 days salary for every year of serviceRate of Gratuity is 15 days salary for every year of service

Came into force on 16Came into force on 16thth September, 1972September, 1972

Total amount cannot exceed 3 lakhs and 50 thousandsTotal amount cannot exceed 3 lakhs and 50 thousands

ObjectObject Providing uniform scheme to all industrial workersProviding uniform scheme to all industrial workers

Eligibility for GratuityEligibility for Gratuity


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Eligibility for GratuityEligibility for Gratuity

The employer has to pay gratuity to his employees:The employer has to pay gratuity to his employees: When service is terminated on superannuation or retrenchmentWhen service is terminated on superannuation or retrenchment

When employee retires or resigns from service orWhen employee retires or resigns from service or

When the employee dies while in service orWhen the employee dies while in service or

When service is terminated on disablement due to disease/accidentWhen service is terminated on disablement due to disease/accident

Gratuity is payable on all emoluments earned, DA+BasicGratuity is payable on all emoluments earned, DA+Basic

24.5.94 all employees irrespective of wages are eligible24.5.94 all employees irrespective of wages are eligible

The rate of gratuity is based on last drawn salaryThe rate of gratuity is based on last drawn salary

Monthly rated wages are divided by 26 working daysMonthly rated wages are divided by 26 working days

Award, agreement or contract, if better than Act, high rate is applicable for payment of the gratuityAward, agreement or contract, if better than Act, high rate is applicable for payment of the gratuity

Forfeiture of GratuityForfeiture of Gratuity


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Forfeiture of GratuityForfeiture of Gratuity The employee may wholly or partially forfeit the gratuity:

Riotous or disorderly conduct or any other act of violence

Any act which constitute an offence involving moral turpitude

Service terminated, due to damage caused to employer property

Claim for Gratuity Employers obligation:

Inform employee and Controlling Authority in writing

Pay gratuity amount within 30 days

Reply within 15 days of receipt of application Delay in payment attracts simple interest of 10% p.a.

Employees obligation:

Apply within 30 days from the day gratuity becomes payable

Can apply to the Controlling Authority within 90 days for direction

Can prefer Appellate Authority within 60 days from the receipt date

Protection of Gratuity


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Protection of Gratuity Gratuity is not attached to any courtGratuity is not attached to any court

Inferior scheme, if present, will be superseded by the ActInferior scheme, if present, will be superseded by the Act

OffencesOffences Any person making false statement to avoid paymentAny person making false statement to avoid payment

Will be punished with imprisonment upto 6 months orWill be punished with imprisonment upto 6 months or

Fine upto Rs. 10000 or bothFine upto Rs. 10000 or both

If employer contravenes or defaults:If employer contravenes or defaults:

Will be punished with 9 years imprisonment orWill be punished with 9 years imprisonment or

Fine upto Rs. 20000 or with bothFine upto Rs. 20000 or with both

Display of abstract of the ActDisplay of abstract of the Act Every employerEvery employer

must display an abstract of the act and rules there undermust display an abstract of the act and rules there under

In English or language understood by majorityIn English or language understood by majority

At a conspicuous place at or near the main entranceAt a conspicuous place at or near the main entrance


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SUPERANNUATION SCHEMESUPERANNUATION SCHEME

Superannuation is an investment which operatesSuperannuation is an investment which operates

primarily to provide benefits for retirement.primarily to provide benefits for retirement.

Superannuation savings are usually made throughSuperannuation savings are usually made through

trust funds. If these funds meet prescribedtrust funds. If these funds meet prescribedgovernment standards they are eligible for taxgovernment standards they are eligible for tax

concessions. More over these investments also incurconcessions. More over these investments also incur

interests.interests.

Many companies provide this facility to theirMany companies provide this facility to their

employees as retiral benefit.employees as retiral benefit.


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THANK YOUTHANK YOU

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