A BRIEF CHECK LIST OF EMPLOYMENT LAWS APPRENTICES ACT, 1961 CHECKLIST Apprenticeship Advisor Central Apprenticeship Advisor – when appointed by Central Government. Sec. 2(b) Applicability of the Act Areas and industries as notified by the Central Government Sec. 1Object of the Act Promotion of new manpower at skills. Improvement/refinement of old skills through theoretical and practical training in number of trades and occupation Industry Industry means any industry, or business or in which any trade, occupation or subject/field in engineering or technology or any vocational course may be specified as a designated trade Sec. 2(k) Qualification for being trained as an Apprentice A person cannot be an apprentice in any designated trade unless He is not more than 14 years of age; He satisfies such standard of education And physical fitness as May be prescribed. Sec. 3 Contract of Apprenticeship To contain such terms and conditions as may be agreed to by the apprentice, or his guardian (in case he is a minor) and employers. Sec. 4 Conditions for Notation of Contract of Apprenticeship • There exists an apprenticeship contract. • The employer is unable to fulfil his obligation. • The approval of the Apprenticeship Advisor is obtained. • Agreement must be registered with the Apprenticeship Advisor. Sec. 5 Period of Apprenticeship Training to be Determined by the National Council Obligations of employers • To Provide the apprentice with the training in his trade. • To ensure that a person duly qualified is placed in charge of the training of the apprentice. • To carry out contractual obligations. Sec.11 Termination of Apprenticeship On the expiry of the period of Apprenticeship training. On the application by either of the parties to the contract to the Apprenticeship Advisor Sec. 6 Number of Apprentices in Designated Trade To be determined by The Central Government after consulting the Central Apprenticeship Council Sec.8 Payment to Apprentices The employer to pay such stipend at a rate of not less than the prescribed minimum rate as may be specified. Sec. 6 Obligations of Apprentice To learn his trade conscientiously, diligently. To attend practical and instructional classes regularly. To carry out all lawful orders. To carry out his contractual obligations. Health safety & Welfare measures for Apprentices As per Factories Act or Mines Act as the case may be when undergoing training. Hours of work 42 to 48 in a week while on theoretical training. 42 in a week while on basic training. 42 to 45 in a week in second year of training. As per other workers (in the third year). Not allowed to work between 10 PM to 4 AM unless approved by Apprenticeship Advisor. Leave and Holidays Casual leave for the maximum period of 12 days in a year. Medical leave for the maximum period of 15 days and the accumulated leave up to 40 days in a year. Extraordinary leave up to a maximum period of 10 days in a year. Sec. 15 Employer’s liability to pay compensation for injury As per provisions of Workmen’s Compensation Act. Sec. 16 Offences & Punishment Imprisonment of a term up to 6 months or with fine when employer (I) engages as an apprentice a person who is not qualified for being so engaged or (ii) fails to carry out the terms and conditions of a contract of apprenticeship, or (iii) contravenes the provisions of the Act relating to the number of apprentices which he is required to engage under those provisions CONTRACT LABOUR(REGULARATION & ABOLITION) ACT,1970 & THE RULES CHECKLIST Licensing of Contractor • Engaging 20 or more than 20 workers and on deposit of required fee in Form IV. • Valid for specified period.Sec.12, Rule 21 Applicability • Every establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labor. • Every contractor who employs or who employed on any day of the preceding twelve months 20 or more workmen. Sec. 1 Prohibition of Employment of Contract Labor Only by the appropriate Government through issue of notification after consultation with the Board (and not Courts) can order the prohibition of employment of contractlabour.Sec.10Revocation of Registration When obtained by Misrepresentation or suppression Of material facts etc. after opportunity to the principal employer Sec. 9 Object of the Act To regulate the employment of contract labor in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith. Registration of Establishment Principal employer employing 20 or more workers through the contractor or the contractor(s) on deposit of required fee in Form 1 Sec. 7 Registers of Contractors • Principal employer • To maintain a register of contractor in respect of every establishment in Form XII. • Contractor Rule 74 • To maintain register of workers for each registered establishment in Form XIII. • To issue an employment card to each worker in Form XIV. • To issue service certificate to every workman on his termination in Form XV. Rules 75, 76 and 77 Muster Roll, Wages Register, Deduction Register and Overtime Register by Contractor • Every contractor shall • Maintain Muster Roll and a Register of Wages in Form XVI and Form XVII respectively when combined. • Register or wage-cum-Muster Roll in Form XVII where the wage period is a fortnight or less. • Maintain a Register of Deductions for damage or loss, Register or Fines and Register of Advances in Form XX, from XXI and Form XXII respectively. • Maintain a Register of Overtime in Form XXIII. • To issue wage slips in Form XIX, to the workmen at least a day prior to the disbursement of wages. • Obtain the signature or thumb impression of the worker concerned against the entries relating to him on the Register of wages or Muster Roll-Cum-Wages Register. • When covered by Payment of Wages Act, register and records to be maintained under the rules • Muster Roll, Register of wages, Register of Deductions, Register of Overtime, Register of Fines, Register of Advances, Wage slip. Rule 79 • To display an abstract of the act and Rules in English and Hindi and in the language spoken by the Majority of workers in such forms as may be approved by appropriate authority Rule 80 • To display notices showing rates of wages, hours of work, wage period, dates of payment, names and addresses of the inspector and to send copy to the inspector and any change. Rule 81Sec. Offence Punishment Sec. 22 Obstructions For obstructing the inspector or failing to produce registers etc. -3 months’ imprisonment or fine upto Rs.500, or both. Sec.23 Violation For violation of the provisions of Act or the Rules, imprisonment of 3 Months or fine upto Rs.1000. On continuing contravention, additional fine upto Rs.100 per dayPENALTIES Liability of Principal Employer • To ensure provision for canteen, restrooms, sufficient supply of drinking water, latrines and urinals, washing facilities. • Principal employer entitled to recover from the contractor for providing such amenities or to make deductions from amount payable. Sec. 20Laws, Agreement or standing orders inconsistent with the Act-Not Permissible Unless the privileges in the contract between the parties or more favorable than the prescribed in the Act, such contract will be invalid and the workers will continue to get more favorable benefits. Sec.20Welfare measures to be taken by the Contractor • Contract labor either one hundred or more employed by a contractor for one or more canteens shall be provided and maintained. • First Aid facilities. • Number of rest-rooms as required under the Act. • Drinking water, latrines and washing facilities. Sec. 16 & 17 Revocation or Suspension & Amendment of Licenses • When obtained by misrepresentation or suppression of material facts. • Failure of the contractor to comply with the conditions or contravention of Act or theRules.Sec.14EMPLOYEES’ PROVIDENT FUNDS & MISC. PROVISIONS ACT, 1952 & THE SCHEMES CHECKLIST Applicability • Every establishment which is factory engaged in any industry specified in Schedule 1 and in which 20 or more persons are employed. • Any other establishment employing 20 or more persons which Central Government may, by notification, specify in this behalf. • Any establishment employing even less than 20 persons can be covered voluntarily u/s 1(4) of the Act. Clarification about Contribution After revision in wage ceiling from 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. Under Employees’ Deposit-Linked Insurance Scheme the contribution @0.50% is required to be paid upto a maximum limit of Rs.6500. The employer also will pay administrative charges @0.01% on maximum limit of Rs.6500 whereas an exempted establishment will pay inspection charges @0.005% on the total wages paid. Notes: The above clarification is given by taking wages upto a maximum of Rs.6500 towards wage (basic+DA). Since an excluded employee i.e. drawing wages more than Rs.6500 can also become member of the Fund and the Schemes on joint request and if, for instance, such an employee is getting Rs.10,000 per month, his share towards provident fund contribution will be Rs.1200 e.g. 12% and employer’s share towards provident fund contribution will be Rs.659 and Rs.541 towards Employees’ Pension Fund. Penal ProvisionLiable to be arrested without warrant being a cognisable offence. Defaults by employer in paying contributions or inspection/administrative charges attract imprisonment upto 3 years and fines upto Rs.10,000 (S.14). For any retrospective application, all dues have to be paid by employer with damages upto 100% of arrears. Benefits Employees covered enjoy a benefit of Social Security in the form of an unattachable and unwithdrawable (except in severely restricted circumstances like buying house, marriage/education, etc.) financial nest egg to which employees and employers contribute equally throughout the covered persons’ employment. This sum is payable normally on retirement or death. Other Benefits include Employees’ Pension Scheme and Employees’ Deposit Linked Insurance Scheme. Payment of Contribution • The employer shall pay the contribution payable to the EPF, DLI and Employees’ Pension Fund in respect of the member of the Employees’ Pension Fund employed by him directly by or through a contractor. • It shall be the responsibility of the principal employer to pay the contributions payable to the EPF, DLI and Employees’ Pension Fund by himself in respect of the employees directly employed by him and also in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor. SCHEME EMPLOYEE’S EMPLOYER’S CENTRAL GOVT’S Provident Fund Scheme 12% Amount > 8.33% (in case where contribution is 12% of 10%) 10% (in case of certain Establishments as per details given earlier) NIL Insurance Scheme NIL 0.5 NIL Pension Scheme NIL 8.33% (Diverted out of Provident Fund1.16% Damages • Less than 2 months ….@17% per annum • Two months and above but less than upto four months ….@22% per annum • Four months and above but less than upto six months ….@27% per annum • Six months and above Rates of Contribution Eligibility Any person who is employed for work of an establishment or employed through contractor in or in connection with the work of an establishment. EMPLOYEES’ STATE INSURANCE ACT, 1948 & the SCHEME CHECK LIST Coverage of employees Drawing wages upto Rs.10000/-per month engaged either directly or thru’ contractorRate of Contribution of the wages Employers’ 4.75% Employees’ 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 authorized bank through a Chillan in the prescribed form in quadruplicate on ore before 21st of month following the calendar month in which the wages fall due. THE ESI SCHEME TODAY No. of implemented Centres 677 No. of Employers covered 2.38 lacs No. of Insured Persons 85 lacs No. of Beneficiaries 330 lacs No. of Regional Offices/SRO’s 26 No. of ESI Hospitals/Annexes 183 No. of ESI Dispensaries 1453 No. of Panel Clinics 2950Applicability of the Act & SchemeIs extended in area-wise to factories using power and employing 10 or more persons and to non-power using manufacturing units and establish-ments employing 20 or more person upto Rs.7500/-per month w.e.f. 1.4.2004. It has also been extend-ed upon shops, hotels, restaurants, roads motor transport undertakings, equip-ment maintenance staff in the hospitals. Benefits To the employees under the Act 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. WAGES FOR ESI CONTRIBUTIONS Registers/files to be maintained by the employers To be deemed as wages • Basic pay • Dearness allowance • House rent allowance • City compensatory allowance • Overtime wages (but not to be taken into account for determining the coverage of an employee) • Payment for day of rest • Production incentive • Bonus other than statutory bonus • Night shift allowance • Heat, Gas & Dust allowance • Payment for unsubstituted holidays • Meal/food allowance • Suspension allowance • Lay off compensation • Children education allowance (not being reimbursement for actual tuition fee) NOT to be deemed as wages • Contribution paid by the employer to any pension/provident fund or under ESI Act. • Sum paid to defray special expenses entailed by the nature of employment – Daily allowance paid for the period spent on tour. • Gratuity payable on discharge. • Pay in lieu of notice of retrenchment compensation • Benefits paid under the ESI Scheme. • Encashment of leave • Payment of Inam which does not form part of the terms of employment. • Washing allowance for livery • Conveyance Amount towards reimbursement for duty related journey Penalties Different punishment have been prescribed for different types of offences in terms of Section 85: (I) (six months imprisonment and fine Rs.5000), (ii) (one year imprisonment and fine), and 85-A: (five years imprisonment and not less to 2 years) and 85-C(2) of the ESI Act, which are self explanatory. Besides these provisions, action also can be taken under section 406 of the IPC in cases where an employer deducts contributions from the wages of his employees but does not pay the same to the corporation which amounts to criminal breach of trust. Contribution period If the person joined insurance employment for the first time, say on 5th January, his first contribution period will be from 5th January to 31st March and his corresponding first benefit will be from 5th October to 31st December. Contribution period 1st April to 30th September. 1st October to 31st March FACTORIES ACT, 1948 CHECK LIST 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. Secs. 11 to 20 Registration & Renewal of Factories To be granted by Chief Inspector of Factories on submission of prescribed form, fee and plan. Secs. 6 Applicability of the Act Any premises whereon 10 or more persons with the aid of power or 20 or more workers are/were without aid of power working on any dyad preceding 12 months, wherein Manufacturing process is being carried on. • Self-acting machines. • Casing of new machinery. • Prohibition of employment of women and children near cotton-openers. • Hoists and lifts. Safety Measures • Facing of machinery • Work on near machinery in motion. • Employment prohibition of young persons on dangerous machines. • Striking gear and devices for cutting off power. Welfare Measures • Washing facilities • Facilities for storing and drying clothing • Facilities for sitting • First-aid appliances – one first aid box not less than one for every 150 workers. • Canteens when there are 250 or more workers. • Shelters, rest rooms and lunch rooms when there are 150 or more workers. • Crèches when there are 30 or more women workers. • Welfare office 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 10½ hours. Overlapping shifts prohibited. Extra wages for overtime double than normal rate of wages. Restrictions on employment of women before 6AM and beyond 7 PM. Secs. 51, 54 to 56, 59 & 60 Employment of Young Persons • Prohibition of employment of young children e.g. 14 years. • Non-adult workers to carry tokens e.g. certificate of fitness. • Working hours for children not more than 4 ½ hrs. and not permitted to work during night shift. Secs. 51, 54 to 56, 59 & 60 Annual Leave with Wages A worker having worked for 240 days @one day for every 20 days and for a child one day for working of 15 days. Accumulation of leave for 30 days. Secs. 79 OFFENCE PENALTIES Sec.92 to • For contravention of the Provisions of the Act or Rules • Imprisonment upto 2 years or fine upto Rs.1,00,000 or both • On Continuation of contravention • Rs.1000 per day • On contravention of Chapter IV pertaining to safety or dangerous operations. • Not less than Rs.25000 in case of death. • Not less than Rs.5000 in case of serious injuries. • Subsequent contravention of some provisions • Imprisonment upto 3 years or fine not less than Rs.10,000 which may extend to Rs.2,00,000. • Obstructing Inspectors • Imprisonment upto 6 months or fine upto Rs.10,000 or both. • Wrongful disclosing result pertaining to results of analysis. • Imprisonment upto 6 months or fine upto Rs.10,000 or both. • For contravention of the provisions of Sec.41B, 41C and 41H pertaining to compulsory disclosure of information by occupier, specific responsibility of occupier or right of workers to work imminent danger. • Imprisonment upto 7 years with fine upto Rs.2,00,000 and on continuation fine @Rs.5,000 per day. • Imprisonment of 10 years when contravention continues for one year. EMPLOYMENT EXCHANGES (COMPULSORY NOTIFICATION OF VACANCIES) ACT, 1959 & THE RULES CHECK LIST Object of the Act To provide for the compulsory notification of vacancies to employment exchanges. Applicability of the Act By notification in the Official Gazette, appoint in this behalf for such State and different dates may be appointed for different states or for different areas of a State. When Act is not applicable • Any employment in agriculture, horticulture etc. • Any employment in domestic service. • Any employment, the total duration of which is less than three months. • Any employment to do unskilled office work. • Any employment connected with the staff of Parliament. Sec. 3 Notification of vacancies to Employment Exchanges Before filling up any vacancy as prescribed. Employer not obliged to recruit the person through employment exchange. To notify the vacancies to such employment exchanges as may be prescribed. Secs. 4 Furnishing information and returns The employer in every establishment in public sector in that State or area shall furnish such information or return as may be prescribed in relation to vacancies that have occurred or are about to occur in that establishment, to such employment exchanges as may be prescribed. Secs. 5 Time limit for notification of vacancies & selection • At least 15 days before the applicants will be interviewed or tested. • Employer to furnish the result of selection within 15 days. Rules 5 Submission of Returns • Quarterly in Form ER-I • BIENNIAL Return Form ER-II • Within 30 days by 30th June, 31st March, 30th September & 31st December. Rule 6 PENALTIES • An employer contravening the provisions of Sec.4(1) or (2). • Fine upto Rs.500 for first offence and for every subsequent offence fine Rs.1000. • If any person – • Required to furnish any information or return – • Refuses or neglects to furnish such information or return, or • Furnishes or causes to be furnished any information or return which he knows to be false, or • Refuses to answer, or gives a false answer to any question necessary for obtaining any information required to be furnished under section 5; or • Impedes the right of access to relevant records or documents or the right of entry conferred by section 6; he shall be punishable for the first offence with fine upto Rs.250 and for every subsequent offence with fine upto Rs.250 and for every subsequent offence with fine upto Rs.500. Rules 7INDUSTRIAL DISPUTES ACT, 1947 accounting year Separate establishment Computation of available surplus Components of Bonus If profit and loss accounts are prepared and maintained in respect of any such department or undertaking or branch, then such department or undertaking or branch is treated as a separate establishment. Income tax and direct taxes as payable. Salary or wages includes dearness allowance but no other allowances e.g. over-time, house rent, incentive or commission. Depreciation as per section 32 of Income Tax Act. Development rebate, investment or development allowance. Sec.2(21) Sec.5 Sec.3 Disqualification & Deduction of Bonus Computation of gross profit On dismissal of an employee for For banking company, as per First Schedule. • Fraud; or • riotous or violent behaviour while on the premises of the establishment; or Others, as per • theft, misappropriation or sabotage of any property of the establishment or Second Schedule Sec.4• Misconduct of causing financial loss to the Employer to the extent that bonus can be deducted for that year. Eligible Employees Secs. 9 & 18. Employees drawing wages upto Rs.3500 per month or less. Eligibility of Bonus Payment of Minimum Bonus 8.33% of the salary or Rs.100 (on completion of 5 years after 1For calculation purposes Rs.2500 per month maximum will be taken even if an employee is drawing upto Rs.3500 per month. An employee will be entitled only when he has worked for 30 working days in that year. st Accounting year even if there is no profit) Sec.10 Sec. 8 S8Sec.12 Note: The proposal to enhance the existing ceiling of Rs.3500 is under active consideration by the Govt. Time Limit for Set-off and Payment of Bonus Set-on Within 8 months from the close of accounting y ear. Sec. 19 As per Schedule IV. Sec. 15 Maintenance of Registers and Records etc. • A register showing the computation of the allocable surplus referred to in clause (4) of section 2, in form A. • A register showing the set-on and set-off of the allocable surplus, under section 15, in form B • A register showing the details of the amount of bonus due to each of the employees, the deductions under section 17 and 18 and the amount actually disbursed, in form C. Sec.26, Rule 4 Act not applicable to certain employees of LIC, General Insurance, Dock Yards, Red Cross, Universities & Educational Institutions, Chambers of Commerce, Social Welfare Institutions, Building Contractors, etc. etc. Sec.32.PENALTY For contravention of any provision of the Act or the Rule Upto 6 months or with fine upto Rs.1000. Sec.28 PAYMENT OF GRATUITY ACT, 1972 & THE RULES CHECKLIST Calculation Seasonal employee @7 days’ wages for every completed year of service. Sec. 1Applicability Every factory, mine, oil field, plantation, port, railways, company, shop, establishment or educational institutions employing 10 or more employees Sec. 2(s) Wages for Calculation @15 days’ wages for every completed year as if the month comprises of 26 days at the last drawn wages. Sec. 1 Calculation Piece-rated employee @15 days wages for every completed year on an average of 3 months’ wages Qualifying period On rendering of 5 years’ service, either termination, resignation or retirement. Sec. 2(e) Employee All employees irrespective of status or salary Entitlement On completion of five years’ service except in case of death or disablement Rule 4 Display of Notice On conspicuous place at the main entrance in English language or the language understood by majority of employees of the factory, etc. Sec.6 Rule 6 Nomination To be obtained by employer after expiry of one year’s service, in Form ‘F’ Sec. 4(3) Maximum Ceiling Rs.3,50,000 Rule 9Mode of payment Cash or, if so desired, by Bank Draft or Cheque Rule 9 Penalties • Imprisonment for 6 months or fine upto Rs.10,000 for avoiding to make payment by making false state-ment or representa -tion. • Imprisonment not less than 3 months and upto one year with fine on default in comply-ing with the provisions of Act or Rules.Sec.8 Rule 8 Recovery of Gratuity To apply within 30 days in Form I when not paid within 30 days Sec. 4(6) Forfeiture of Gratuity • On termination of an employee for moral turpitude or riotous or disorderly behaviour. • Wholly or partially for wilfully causing loss, destruction of property etc. Sec. 13 Protection of Gratuity Can’t be attached in execution of any decree PAYMENT OF WAGES ACT, 1936 CHECKLIST Applicability of Act • Factory industrial Establishment • Tramway service or motor transport service engaged in carrying passengers or good or both by road for hire or reward. • Air transport service Dock, Wharf or Jetty • Inland vessel, mechanically propelled • Mine, quarry or oil-field Plantation • Workshop or other establishment etc. Coverage of Employees Drawing average wage upto Rs.6500 pm as amended w.e.f. 6.9.05. Fines as prescribed by •Not to imposed unless the employer is given an opportunity to show cause To record in the register Sec.8 Deductions for service rendered When accommodation amenity or service has been accepted by the employee. Sec.11 On contravention of S.5 (except sub-sec.4), S.7, S.8 (except Ss.8), S.9, S.10 (except Ss.2) and Secs.11 to 13. Fine not less than Rs.1000 which may extend to Rs.5000. On subsequent conviction fine not less than Rs.5000, may extend to Rs.10,000. On contravention S.4, S.5(4), S6, S.8(8), S.10(2) or S.25 fine not less than Rs.1000. – may extend to Rs.5000. On subsequent On conviction fine not less. • For failing to maintain registers or records; or • Wilfully refusing or without lawful excuse neglecting to furnish information or return; or • Wilfully furnishing or causing to be furnished any information or return which he knows to be false or • Refusing to answer or wilfully giving a false answer to any question necessary for obtaining any information required to be furnished under this Act. • Fine which shall not be less than Rs.1000 but may extend to Rs.5000 – On record conviction fine not less than Rs.5000, may extend to Rs.10,000. • For second or subsequent conviction, fine not less than Rs.5000 but may extend to Rs.10,000 • Wilfully obstructing an Inspector in the discharge of his duties under this Act; or • Refusing or wilfully neglecting to afford an Inspector any reasonable facility for making any entry, inspection etc. • Wilfully refusing to produce on the demand of an inspector any register or other document kept in pursuance of this Act; or preventing any person for appearance etc. Fine not less than Rs.1000 extendable Upto Rs.5000 – On subsequent conviction fine not less than Rs.5000 – may extent to Rs.10,000 • On conviction for any offence and again guilty of Contravention of same provision. • Failing or neglecting to pay wages to any employee • Imprisonment not less than one month extendable upto six months and fine not less than Rs.2000 extendable upto Rs.15000. • Additional fine upto Rs.100 for each day. Object of the Act To regulate the payment of wages of certain classes of employed persons 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 Sec. 6 Time of payment of wages The wages of every person employed be paid. When less than 1000 persons are employed shall be paid before the expiry of the 7th day of the following month. When more than 1000 workers, before the expiry of the 10th day of the following month. Sec. 5 Deduction made from wages Deductions such as, fine, deduction 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 contributions etc.etc. Sec. 7Deduction for damage or loss For default or negligence of an employee resulting into loss. Show cause notice has to be given to the employee. Sec.10Deduction for absence from duties for unauthorised absence Absence for whole or any part of the day – If ten or more persons absent without reasonable cause, deduction of wages upto 8 days. Sec. 9 WORKMEN’S COMPENSATION ACT, 1923 CHECKLIST Coverage of Workmen Employer’s liability to pay compensation to a workman Applicability All workers irrespective of their status or salaries either directly or through contractor or a person recruited to work abroad. Sec.1(3) On death or personal injury resulting into total or partial disablement or occupational disease caused to a workman arising out of and during the course of employment. All over India Sec.1 Sec.3 Amount of compensation • Where death of a workman results from the injury • An amount equal to fifty per cent of the monthly wages of the deceased workman multiplied by the relevant factor on an amount of eighty thousand rupees, whichever is more. When an employee is not liable for compensation • Where permanent total disablement results from the injury. • In respect of any injury which does result in the total or partial disablement of the workman for a period exceeding three days. • An amount equal to sixty per cent of the monthly wages of the injured workman multiplied by the relevant factor or an amount of ninety thousand rupees, whichever is more Procedure for calculation • In respect of any injury, not resulting in death or permanent total disablement caused by an accident which is directly attributable to-Higher the age – Lower the compensation • Relevant factor specified in second column of Schedule IV giving slabs depending upon the age of the concerned workman. • Example : In case of death. • The workman having been at the time thereof under the influence of drink or drugs, or • Wages Rs.3000 PM ● Age 23 years • Factor as schedule IV Rs.19.95 • Amount of compensation Rs.329935 • Willful disobedience of the workman to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of workmen, or • In case of total disablement Rs.395910. Sec. 4 • Willful removal or disregard by the workman of any safety guard or other device which he knew to have been provided for the purpose of securing the safety of workman. Wages Notice Accident When the monthly wages are more than Rs.4000 per month it will be deemed Rs.4000. As soon as Practicable Sec.3(a) & (b) Sec. 10 Sec.4 Exh.b Report of accident Bar upon contracting out Rule 11 Form EE Any workman relinquishing his right for personal injury not permissible. Report of fatal Accident and Serious Injury within 7 days to the Commissioner (not application when ESI Act applies). Sec.14 Sec.10B PENALTY • In case of default by employer • 50% of the compensation amount + interest to be paid to the workman or his dependents as the case may be. • Deposit of Compensation • Within one month with the Compensation Commissioner Sec.4A