legal aspects of business unit - 3 ppts
TRANSCRIPT
FACTORY
• A factory is a premises whereon 10 or more persons are engaged if power is used, or 20 or more persons are engaged if power is not used, in a manufacturing process.
HEALTH• Cleanliness• Disposal of waste and effluents• Ventilation and temperature• Dust and fume• Artificial humidification• Overcrowding• Lighting• Drinking water• Latrines and urinals• spittoons
SAFETY• Fencing of machinery• Work on machinery near motion• Employment of young persons on dangerous machines• Striking gears and devices for cutting of power• Self acting machines• Casing of new machinery• Prohibition of employment of women and children near cotton openers• Hoists and lifts• Lifting machines, chains, ropes• Revolving machinery• Pressure plant• Floors, stairs and means of access• Pits, sumps, openings• Excessive weights• Protection of eyes• Precaution against dangerous fumes• Precaution against the use of portable light• Precaution against explosives• Precaution in case of fire• Power to require tests of stability• Safety of building and machinery• Maintenance of building• Safety officers
WELFARE
• Washing facility• Facilities for storing and drying clothes• Facility for sitting• First aid appliances• Canteens• Shelters, rest rooms and lunch rooms• Crèches• Welfare officers
INDUSTRY
• Industry means any systematic activity carried on by co-operation between an employer and his workmen.
OBJECTS OF THE ACT
• To secure industrial peace• To ameliorate the conditions of workmen in
industry
INDUSTRIAL DISPUTE
Industrial dispute means any dispute between:• Employers and employers• Employers and workmen• Workmen and workmen
INGREDIENTS OF DISPUTE
• There must be real or substantial dispute• The dispute should be between employer and
workmen• The dispute must be connected with
employment
PROCEDURE FOR SETTLEMENT OF DISPUTES
• Works committee• Conciliation officers• Boards of conciliation• Courts of inquiry• Labour courts• Industrial tribunals• National tribunals
RETRENCHMENT
• Termination by the employer of the service of a workman for any reason whatsoever, otherwise than as punishment inflicted by way of disciplinary action.
LOCK-OUT
• It means the temporary closing of a place of employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him.
MEANING OF BONUS
• Extra dividend to the share holders of a company
• Distribution of profits to insurance policy-holders
• Gratuity to workmen beyond their wages• Desire of the employer to share with his
workers the surplus generated by common endeavor and enterprise
OBJECT AND SCHEME OF THE ACT
• Object is to provide for the payment of bonus to persons employed in certain establishments
SCHEME :• To impose statutory liability upon an employer to pay bonus• To define principle of payment of bonus according to
prescribed formula• To provide for payment of minimum and maximum bonus• To provide machinery for enforcement of the liability for
payment of bonus
ELIGIBILITY FOR BONUS
• Worker must have worked in the establishment for not less than 30 working days in that year
DISQUALIFICATION FOR BONUS
Employee will not get bonus if he is dismissed from service for :
• Fraud• Violent behavior• Theft, misappropriation or sabotage of any
property
SCHEDULES IN THE ACT
FIRST SCHEDULE- Computation of gross profits of a banking company
Items to be added :• Provision for depreciation, donations, income tax,
capital expenditure, income, profits and gains.
Items to deduct :• Capital receipts and profits• Expenditure or losses• Capital expenditure and losses• Income of foreign banking companies
SECOND SCHEDULE- COMPUTATION OF GROSS PROFITS IN OTHER CASES
Items to be added :
• Provision for depreciation, donations, income tax, capital expenditure, income, profits and gains.
Items to deduct :
• Capital receipts and profits• Expenditure or losses• Capital expenditure and losses• Income of foreign banking companies
THIRD SCHEDULE
• The third schedule tells about the amount of cash that is left over after deductions are made. This forms the available surplus out of which bonus is given
SEGREGATION OF EMPLOYER
• Company other than a banking company• Banking company• Corporation• Co-operative society• Any other employer not falling under the
above mentioned category
FOURTH SCHEDULE
This part deals with :
• Method of calculation of available surplus• Its distribution• Set on or set off of the amount available out of it
SCOPE OF THE ACT
• To prevent the evils of withholding wages, delays in payment of pages, unreasonable deductions out of pages.
• To regulate the payment of wages to certain classes of persons employed in industry.
• To ensure payment of wages in a particular form and at regular intervals without unauthorised deductions.
APPLICATION OF THE ACT
• Applies to persons employed in any factory.• To persons employed in railways.
RULES FOR THE PAYMENT OF WAGES
• Responsibility for payment of wages• Fixation of wage period• Time of payment of wages• Medium of payment of wages
DEDUCTIONS FROM WAGES
• Deductions for fines• Deductions for absence from duty• Deductions for damage or loss• Deductions for services• Deductions for recovery of advances• Deductions for recovery of loans• Deductions for payments to co-operatives and
insurance schemes