Synopsis:

• Act applicable to all industrial organizations including charitable organizations.
• Termination, dismissal or discharge of individual employee amounts to industrial dispute.
• Works committee will be constituted in every establishment employing more than 100 employees within the workmen of the factory.
• Notice of change to be tendered to the workman in case of any change in service conditions.
• No notice required, if change is a result of any award or settlement.
• Award shall become enforceable on the expiry of 30 days from the date of its publication in the official gazette.
• Payment of last drawn wages to workmen, pending proceeding in The High Court.
• Settlement arrived by way of conciliation proceedings is binding on the parties to the agreement.
• Employee cannot call a strike in a public utility service without giving notice.
• Employer cannot lockout any employee in a public utility service without Giving notice.
• During pendancy of any conciliation or arbitration proceedings strike cannot be called nor lock out can be declared.
• Workmen who has completed one year or continuous service is entitled to receive compensation for the period of he/she is laid off.
• Employer must maintain muster roll of all workmen.
• Workmen who has completed one year of continuous service cannot be retrenched without giving.
• One month notice in establishment where less than 100 employees are employed.
• Three months notice in an establishment where more than 100 employees are working.                                   
• Prior permission from the appropriate government is required for closing down an establishment where 100 or more employees are working.
• Conditions of employment  to remain the same during the pendancy of conciliation or arbitration proceedings.
• Act prohibits unfair labour practices.
• Non-compliance of the provisions of the act call for penalty.
• Breach of settlement or award amounts to an offence.
• Mere completion of 240 days of service will not give any right for employees to seek regularization.

SYNOPSIS:

• Act applicable to industrial establishments with 100 or more workmen.
• In the state of Andhra Pradesh applicable to industrial establishments with 50 or more workmen.
• Employer to submit draft standing orders with in 6 months to the certifying officer.
• Model standing orders apply till the standing orders certified.
• Model Standing orders in the state of Andhra Pradesh deals with Classification of workmen.

             Periods of working hours, weekly holidays, unclaimed wages pay day   closing down.

• Matters to be provided in Standing Orders :

• Classifications of workmen, e.g., whether permanent, apprentices,
• Probationers, or badlis.
• Manner of intimating to workmen periods and hours of work, holidays, pay-days.
• And wage rates.
• Attendance and Late coming.
• Conditions of, procedure in applying for, and the authority which may grant, leave and holidays.
• Requirement of, enter premises by certain gates, and liability to search.
• Closing and re-opening of Sections of the Industrial Establishments, and temporary stoppages of work and the right and liabilities of the employer and workmen arising therefrom.
• Termination of employment, and the notice thereof to be given by employer and workmen.
• Suspension or dismissal for misconduct, and acts or omissions which constitute misconduct.
• Means of redressal for workmen against treatment or wrongful exactions by the employer or his agents or servants.

• Procedure for Certification of Standing Orders :

• Certifying Officer to forward a copy of draft Standing Orders to the Trade Union or the absence of union, to the workmen of the industry. The Trade Union or the other representatives, as the case may be, are to be heard.

• Date of Operation of Standing Orders :

• On the date of expiry of 30 days from the certification or the expiry of 7 days from authentication of Standing Orders.

• Posting of Standing Orders :

• The text of the Standing Orders as finally certified shall prominently be posted in English or in the language understood by majority of workmen on special at or near the entrance for majority of workers.

• Payment of Subsistence Allowance to the Suspended Workers :

• At the rate of 50% of the which the workman was entitled to immediately preceding the date of such suspension, for the first 90 days of suspension.
• At the rate of 75% of such wages for the remaining period of suspension if the delay in the completion of disciplinary proceedings against such workman is not directly attributable to the conduct of such workman.

Synopsis:

• The act by itself do not prohibit contract labour.
• It empowers Government to abolish on case to case basis.
• Act applicable to all Establishments in which 20 or more employees are employed.
• Registration of establishment has to be done.
• Licenced contractors only are to be engaged.
• To provide Canteen, Rest Room, First aid and other essential facilities to contract labour.
• Contactor responsible for the payment of wages.
• Wages to be paid in currency on a working day.
• Principal employer to supervise disbursement of wages.
• Register of contractors to be maintained by the employer.
• Register of persons engage to be maintained by the contractor.
• Contractor to issue an employment card to the worker.
• Non compliance of the provisions of the Act amounts to an offence.
• On termination contractor to issue service certificate to his employee.
• Registers to be preserved for three calendar years.
• Half yearly return to be submitted by the contractor.
• Annual returns to be submitted by principal employer.

A.P .State Amendment

Prohibition of employment of Contract Labour:

1. Notwithstanding anything contained in this Act, employment of Contract   

Labour in Core Activities of any establishment is prohibited:

Provided that the Principal employer may engage Contact Labour or a Contractor to any core activity if

1. The normal functioning the establishments is such that the  activity is 

      Ordinarly done through Contracts, or

2. The activities are such that they do not require full time workers for the 

       major portion of the working hours in a day or for longer.

       Periods as the case may be

3. Any sudden increase of volume of work in the core-activity which needs

       to be accomplished in a specified time.

Synopsis:

• Act applicable to all shops and Establishments and Co-operative Societies.
• All establishments are to be compulsorily registered.
• New establishments to register within 30 days of commencement of work.
• Renewal of Registration to be done before 30 days November of every year.
• Penalty for delay application to be submitted between 2nd and 31st December with 25% of the fee prescribed. Application after 1st January 50% of the fee prescribed.
• Opening and closing hours to be followed.
• Daily and weekly hours of work by employees is 48 hours a week and 8 hours a day.
• Rest of one hour after 5 hours of work to be given.
• Total spread of 8 hours not to exceed 12 hours in a day.
• Over time work is a maximum of 6 hours in a week.
• Overtime at double the rate to be paid for work of 8/48 hours in a day/week.
• Weekly holiday to be granted to every employee.

Employment of Women & Children

• Employment of children prohibited
• Women not to work before 6.00 AM and after 8.30 PM
• Women employee with 6 months & above services, in case of delivery entitled to maternity leave of 6 weeks preceding and 6 weeks following the day of delivery.
• 15 days of leave with wages upon completion of one year service.
• 8 days of leave can be encashed.
• Casual leave of 12 days, Sick leave of 12 days and 9 holidays in a year to be given.
• Premises of every establishment to be kept clean and properly ventilated, fire extinguishers to be provided.
• Safety measures are to be taken regarding heavy and dangerous machineries.
• Maximum wage period one month.
• Payment to be made before expiry of 5th day.
• One month notice or wages in lieu there of, to be given in case of termination.
• Service compensation of 15 days average wage for each year of service to be paid.
• Incase of payment of gratuity under payment of gratuity Act, 1972, no service compensation need to be paid.
• List of acts that amounts to misconduct need to be displayed.
• Employee placed under suspension to be paid subsistence allowance
                         
• 50% wages first 6 months.
• 75% of wages periods beyond 6 months.
• Non-conformity to the Act amounts to an affence.
• Maintenance of registers and records is mandatory and to be preserved for three years.
• Periodical returns to be furnished.
• Weekly Holiday’s Act 1942 is not applicable.
• Nothing in this Act shall apply to employees in Management positions.

Synopsis:

• The E.P.F. Act and Scheme are applicable to all factories and establishments employing 20 or more employees.
• Establishment includes all branches and departments.
• Act not applicable Co-operative Societies with less than 50 Employees.
• Once covered will continue even if employee strength falls below 20.
• Employee with more than Rs. 6500/- salary (BASIC+DA) P.M. is excluded employee.
• Employer contribution should not be deducted from employee.
• Damages to be paid by employer on default of payment of contribution.
• Benefits under the Act cannot be attached.
• Withdrawals from the fund permitted.

• For purchase or construction of house/flat.
• For illness/hospitalization.
• For marriage & education of children

• Employer to send monthly returns and annual return.
• Non-compliance amounts to an offence.

       PENSION

• Maximum pensionable salary Rs 6500/-
• Membership in the fund till the age of 58 years only.
• Retirement pension – if eligible service rendered 20 years or more.
• Short service pension – if eligible service rendered 10 years or more.
• Pension incase of death while in service or below 58 years of age.
• Pension incase of permanently and totally disabled.

       EDLI

• In case of death, eligible for assurance benefit.
• For this purpose maximum monthly salary shall be Rs 6,500/-.
• Minimum benefit Rs. 35,000/-and maximum benefit Rs.60,000/-.
• Can be exempted if similar benefits provided by employer.

Synopsis:

Applicability:

The scheme is applicable to all factories and other establishments to which the Employee’s Provident funds and Miscellaneous Provisions Act, 1952 applies, The scheme is meant for members of the Provident Funds subscribing to Employee’s Provident Fund scheme 1952 of any scheme exemptd thereunder.

Membership eligibility:

• Membership of the scheme is compulsory for all provident fund subscribes including those employed in exempted establishment contributing to the Employees family pension scheme, 1971;and

          All new entrants to the provident funds scheme, 1952 from 16-11-1995 onwards    

          automatically become members of the employees pension scheme 1995

• Membership is available on optional basis for

Existing members of exempted and un exempted provident fund scheme as on 15-11-1995 who are not members of the family pension scheme 1971

Members of the family pension scheme 1971 who left employment between     1-4-1993 – 15-11-2995 wheter they have withdrawn their benefits or not

Beneficiaries of the family pension scheme, 1971 who have died on or after 1-4-1993

Funding of the Scheme:

• No separate / additional contribution is payble for employees pension scheme

          9.33% of subscribers pays all being diverted from employees share of provident

          Fund contributions and 1.1/6% of subscribes pay shall be paid by the

          government as government contribution existing assets and liabilities of the 

          ceased family pension fund, 1971 as on 16-11-1995 will from the corpus of the

          scheme provident fund accumulations up to 15-11-1995(bothshare with interest

          will remain available to members in to like wise balance of 1.6753.67%

          employers share of contribution in case of 10% d/12% contribution rate will

          continue to remain in provident fund a/c of the members.

Benefit Package:

• The employees pension scheme 195 provides for following benefit package

1.  for member

1. Pension payment for life on Retirement /Superannuation
2. Pension payment for life on invalidation during employment.
3. Lumpsum payment to the member by way of commutation of pension upto one third pension amount on optional basis.
4. Capital return on option formula basis upon cessation of members pension payment

2. Pension payment to the family members upon death of the member

1. To spouse for life or until remarriage
2. To children (two at a time ) till they attain the age of 25 years additionally along with pension payment to spouse: for total and permanently disabled children pension for life.
3. Orphan pension to children at higher rate upon cession of pension payment to spouse.
4. To nominee/dependent parents for life incase member is unmarried or having no eligible family member

The scheme covers members death risk unconditionally-i.e. irreapective of whether such death occurs.

1. while in service;
2. Away from employment and not contributing to the fund or
3. After retirement as a pensioner

The family member shall remain entitled for pensionary support uniformly

The scheme in its benefit package precisely covers as under:

1. Pension payment to the member against contribution component diverted

Permitting communication/return of capital on option formula basis and

2. Complete security coverage to the family members for pensionery support

In the event of members death delinking contribution component altogether on a social insurance pattern.

Special provision made in the scheme to facilitate benefit availability/delivery for seasonal/causal employees.

• Employees engaged seasonally in any establishment, the period of “actual service” in any year, notwithstanding that such service is less that a year, shal be treated as full year.
• Pensionable salary will be worked out “Nationally” for month in the event of drawal of salary for apart of the month.
• Pensionary benefits shall be extended to the members without co-relating compliance by the employer of the establishment.

Exemption:

• There are provisions for Exemption under the scheme. Establishment already having any pension scheme or intend to adopt any pension Scheme are eligible to avail of the Exemption.
• Exemption application is to be disposed off within a period of 6 months.
• During pendency of Exemption appliacation, diversion of contribution to Pension fund will not be required.
• On grant of Exemption, withdrawal benefit payable to the outgoing members, shall be allowed to be paid/transferred to the Exempted fund.
• Exemption from pension scheme can be granted only to establishments and not to any employees or group of employees.

Commutation of Pension:

• Option is available for commutation of pension.
• Commutation is permissible upto 1/3rd of pension amount.
• Commuted value will be hundred times of pension amounts so commuted.
• Upon commulation, the balance amount of pension payable shall be the monthly pension. Capital return option under para 13 in such cases will be restricted balance amount of pendion only.

Valuation of the Fund

• The fund will be actually values every year.
• The surplus arising out of such valuation will be utilized to improve the benefit quantum.
• Annual valuation is expected to provide extra addition to pension quantum every year to the existing pensioners.

Pension increase based on valuation result has already been allowed @ 4% against 1st year valuation of pension fund and @ 5.5% against 2nd year’s valuation for the period ending 31-3-1998. 3rd year’s valuation process is nearing completion while 4th year’s valuation for the year ending 31-3-2000 has been taken op,

Synopsis:

• Act applicable to all factories and establishments other than seasonal factories.
• The extension of the provision of the Act to different areas in the country will be notified depending upon the provision of the facilities for treatment etc.
• Registration of the factories and establishment falling under this Act is mandatory.
• Act applicable only to employees who draw salary/wages of Rs 7500/- or less.
• Apprentice under Apprentices Act are not covered.
• Contributions to be paid by the Employer and employee.

• Employers’ :4.75%
• Employers’ :1.75%

• Employer’s and employee’s contribution to be paid by the employer into a bank authorized by ESI Corporation within 21 days of the last day of the calendar month.
• Employee contribution only can be recovered from the employee’s wages.
• On default in payment employer is liable to pay a minimum of 12% interest and damages.
• Accident report has to be submitted within the specified period.
• Two contribution periods and corresponding benefit periods prescribed by the act are:

Synopsis:

• Act not applicable to factories and establishments which are covered under the Employees State Insurance.
• Employer liable to pay compensation for accident arising while in the course of employment.
• Apprentice is also covered by the Act but casual employees are not covered.
• A workman can claim compensation either under the workmen’s Compensation Act or the Motor Vehicles Act only but not under both the acts.
• The amount of compensation to be depends upon the type of injury.
• Funeral expenses of Rs. 2500/- in case of death to be paid.
• Statement to be submitted regarding fatal accidents.
• Reports of fatal accidents and serious bodily injuries to be sent.
• Agreements regarding the payment of compensation to be registered.
• An appeal from the commissioner lies to the High Court only after depositing the claim amount.
• Return regarding the number of injuries for which compensation was paid to be furnished
• Employer can not enter into a contract with an employee to the effect that an employee either relinquishes or reduces his right to of compensation.
• Default in payment of compensation is punishable.
• Failure to maintain registers and to send in the statement amounts to an offense.

  Synopsis:

• Act applicable to all factories and industrial establishments, Tramway services or motor transport services engaged in carrying passengers or goods or both by road for hire or reward, air transport service, Dock, What or jetty, Inland vessel-Mechanically propelled, Mine, quarry or Oil-field, Plantation, Workshop or other establishments etc.
• Coverage of Employees:

• Drawing average wage upto Rs. 6500 per month.

• Time of payment of wages :

The wages of every person employed be paid:

• Shall be paid before the expiry of 7th day of the following month where less than 1000 person are employed.
• Where more than 1000 workers, shall be paid before the expiry of the 10th day of the following month.

• Wages to be paid in current coins or currency notes :
• All wages shall be paid in current coins or currency notes or in both.
• After obtaining the authorization either by cheque or by crediting the wages in employee’s bank account.

• Deductions made from wages
• Deduction such as, fine deductions for amenities and services supplied by the employer, advances paid, over payment of wages, loan granted for house-building or other purposes, income tax payable, in pursuance of the order of the court, PF contributions, cooperative societies, premium for Life Insurance, contribution to any fund constituted by employer or a trade union, recovery of losses, ESI contribution etc.
• Fines as prescribed by :

• Not to be imposed unless the employer is given an opportunity to show  cause.
  • To record in the register.
  • Deduction for absence from duties for un authorized absence :

  Absence for whole or any part of the day-

  • If ten or more persons absent without notice and reasonable cause, deduction of wages upto a maximum of 8 days.
  • Deduction for damage or loss :
  • For default or negligence of an employee resulting into loss.
  • Show cause notice has to be given to the employee.
  • Deductions for services rendered :
  • When accommodation amenity or service has been accepted by the employee.
  • An abstract of the act to be displayed.

Synopsis:

• The Act is applicable to Scheduled Employment.
• The rate of minimum wages to be paid fixed by the government by way of notification.
• Rate of minimum wages is fixed depending upon the cost of living index.
• Minimum wages to be paid in cash.
• The number of working hours to constitute a normal working day is 9 hours and in case of child 4.5 hours. Anything over and above that would constitute overtime.
• Employee to be provided with a day of rest on the seventh day after working for six consecutive days.
• Rate of wages differs when the number of working hours put in by the employee is less than the requisite number of hours.
• Different minimum rates of wages are applicable when the employee is engaged in two or more classes of work.
• Certain time and conditions to be followed as regards the payment of wages.
• Notice to be affixed in an appropriate place in the establishment.
• Unpaid wages due to the employee to be deposited with the prescribed authority.
• Employer cannot enter into a contract with an employee to the effect that an employee either relinquishes or reduces his right to a minimum rate of wages.
• Maintenance of registers and records in the prescribed from is mandatory.
• Non-observance of certain provisions of the act amounts to an offence.

Synopsis:

• Act applicable to all factories and establishments in which 20 or more persons employed.
• Gratuity to be payable to employee who has served for 5 years, on the resignation or termination of the employment.
• An apprentice is not treated as an employee under the act.
• Gratuity to be payable at the rate of 15 days wages for every completed year to service, by calculating 26 days per month.
• Maximum gratuity amount payable should not exceed Rs. 3,50,000/-
• Gratuity to be paid within 30 days from the date it becomes payable
• Gratuity to be paid by a crossed cheque or demand draft
• Specific mode of calculation to be followed
• No notification is issued regarding compulsory enrollment of employees to insurance cum saving schemes
• Maintenance of Registers and records in the prescribed from is mandatory
• Non-observance of certain provisions of the act amounts to an offence.
• Gratuity is payable only on Basic + DA
• Method of calculation: [(monthly Salary/26)*15*Numbers of years of service]

Synopsis:

• Act applicable to all factories and establishments
• Components of Bonus:

• Salary or wages includes dearness allowance but not other allowances e.g. over-time, house rent, incentive or commission

• Computation of available surplus:

• Income tax and direct taxes are payable.
• Depreciation as per section 32 of income Tax Act.
• Development rebate, investment or development
• Allowances

• Eligibility of Bonus:

• An employee will be entitled only when he has worked for 30 days in that year.

• Disqualifying and deduction of bonus
• On dismissal of an employee for

• Fraud or
• Riotous or violent behavior while on the premises of the establishment or
• Theft, misappropriation or sabotage of any property of the establishment; or
• Misconduct of causing financial loss to the employer to the extent that bonus can be deducted for that year.

• Payment of Minimum Bonus:

• 8.33% of the salary

• Eligibility employees:

• Employees drawing wages upto Rs. 10,000 per month or less.
• For calculation purposes a maximum of Rs. 3500 per month will be taken even If an employee is drawing upto Rs. 10,000 per month.

• Time Limit of Payment of Bonus:

• Within 8 months from the close of accounting year.

Synopsis:

• Acts applicable to all establishments.
• Any person engaged in Profession, Trade, Calling or Employment in the state of Andhra Pradesh is liable to pay this tax.
• Every employer to obtain a Certificate of registration or enrollment from the assessing authority within 30 days of commencement of Profession, Trade, Calling or Employment.
• Employer liable to deduct and pay the tax on behalf of the employee.
• Return along with challan every month in Form V to be submitted.

Tax Payable by salary and wage earners is as under

• Upto Rs. 5000/- Salary ----------- Nill
• For Salary between Rs. 5000/-   to Rs. 6000/-         Rs. 60/-
• For Salary between Rs. 6000/-   to Rs. 10000/-       Rs. 80/-
• For Salary between Rs. 10000/- to Rs. 15000/-       Rs. 100/-
• For Salary between Rs. 15000/- to Rs. 20000/-       Rs. 150/-
• For Salary above Rs. 20000/-  …………………              Rs. 200/-