SEMINAR ON LABOUR LAWS
Organised by:-
WESTERN INDIA REGIONAL COUNCIL OF
THE INSTITUTE OF CHARTERED
ACCOUNTANTS OF INDIA
(WIRC),
“ICAI BHAWAN”, 27 CUFFE PARADE, COLOBA, MUMBAI – 400 005
Date:-
11th April 2015
Faculty Trainer:Adv. Ramesh L. Soni
Management Consultant and Advisor on Labour Laws
Index
Sr.
No
1
2
3
4
5
6
Topic
Page
No.
7
Employees’ State Insurance Act, 1948
The Payment of Wages Act, 1936
Definition of Wages
Maharashtra Minimum Wages Chart
The Payment of Bonus Act, 1965
The Maharashtra Labour Welfare Fund Act,
1953
Payment of Gratuity Act, 1972
04
67
75
78
91
97
101
8
9
10
Maharashtra Profession Tax Act, 1975
Statutory Compliance: - Various Returns
Useful Website &Disclaimer
117
127
130
Employ ees’ State Insuranc e
Act ,
1948
Long Back in 1923, the Government, by enacting the Workmen‘s Compensation Act, provided
some Social security to the industrial workers. The benefit provided by this act was, however,
limited to compensation for injury caused by accident. Besides, the cost of compensation was to
be borne entirely by the employer.
By enacting the Employee‘s State Insurance Act, 1948, the Government introduced a scheme of
social insurance for the industrial workers. Under the scheme, the workers also are required to
contribute to a social insurance fund, which is to be utilised for conferring benefits on them. The
Employee‘s State Insurance Act, 1948, provides to the workers not only accident benefit but also
other benefits such as sickness benefit, maternity benefit and medical benefit.
Object:The object of the Act is to secure sickness, maternity, disablement and medical benefits to
employees of factories and establishments and dependents‘ benefits to the dependents of such
employees.
Coverage under the ESI Act, 1948:The Act is applicable to the ―Factory‖ u/s 2(12) has amended to facilitate coverage of smaller
factories and all factories which employ 10 or more persons whether are run by power or
without power (w.e.f. 1st June 2010)
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants,
cinemas including preview theatre, road motor transport undertakings and newspaper
establishment employing 20 or more persons.
There is exception, by virtue of notification dt:- 31st Mach 2008, a person with disability
under Disabilities Act, 1955 and National Trust for Welfare of Persons with Disabilities Act,
1999 is entitled to be covered under the Act even through his wage exceeds Rs. 15000/- p.m.
(w. e. f. 1st May 2010) The Rule 50 of Central Rules stands suitably modified as to cover
persons with disability drawing wages up to Rs. 25000/- p.m.
(ONCE COVERED; COVERED FOR EVER)
The Factory or Establishment shall continue to be governed by the Act notwithstanding the fall
in the number of persons employed or discontinuance of the use of power w.e.f. 23rd Oct 1989
Areas Covered:The ESI Scheme is being implemented area-wise by stages. The Scheme has already been
implemented in different areas in the all States & Union Territories i.e. Delhi, Chandigarh and
Pondicherry
Non Implemented States:Manipur, Sikkim, Arunachal Pradesh and Mizoram.
a)
b)
c)
d)
e)
f)
Applicability:
All Factories Employing 10 or more persons whether they are run by Power or without Power
(w.e.f. 1st June 2010)
Shop Employing 20 or more persons
The existing wage-limit for coverage under the Act, is Rs.15,000/- per month, excluding
overtime wages. (with effect from 1.05.2010)
Disabled Employees wage limit for coverage under the Act, is Rs. 25000/- per month, Insurance
Number is to be taken from respective branch office.
Any Establishment which the State Government may specifically notify as being covered.
Certain States like Delhi, Punjab, Karnataka, Andhra Pradesh ESIC Applicable on 10 employees
to different industries. (School, Hospitals, etc.)
Note:As soon as the above conditions are fulfilled the employer should furnish the details in Form01 to ESIC office for registration under the ESI Act, 1948 & Obtaining of the Company‘s Code
Number.
Following Employees also Entitled for ESI Coverage (Gross Salary/Wages Rs. 15,000/-P.M.):The employees have been held to be covered under the Act (establishment or factory should be
covered under the ESI Act):-
1) Persons employed in a canteen of a club
2) Drivers employed by the transport organisation
3) Persons engaged in the distribution and sale of products
4) Persons carrying administrative work of processing the orders and executing sales
5) Hawkers employed for sale of products
6) Employees of cycle stand and canteen run in cinema theatres by contractors
7) Members of editorial and administrative staff of a printing press publishing newspaper
8) A home worker rolling beed is at home
9) Medical Representative
10) Persons employed in a hospital attached to an maintained by factory
11) Part-time doctor employed by ambulance room
12) Book binders engaged by a contractor
13) Sales clerk working in a factory
 Is Directors Coverable?
A directors and the managing director of a company, who is paid a less than Rs. 15,000/remuneration per month, have been held to be an employee for the coverage purpose
 Is Partners Coverable?
A partner engaged for the work of the factory or establishment and being paid monthly even
less than Rs. 15,000/- P.M is not an employee as defined under the definition of ESI Act.
 Is OT counted for Coverage Purposes?
An employee whose wages (excluding OT wages) exceed Rs. 15,000/-P.M at any time after the
beginning of the contribution period, shall continued to be covered until the end of that
contribution period.
 Is Consultants are employees???
Consultants do not work in the premised of the company. Their work is carried out in their own
places. They are engaged as consultants in the matter of carrying on the business of the
respondent first as retaining tax consultants such engagement cannot create employeremployee relationship.
 Employer Contribution not to be deducted:No deduction shall be made from the wages / salary of any employee for the employers
contribution payable or paid in respect of him.
 Recovery of Contribution in respect of Contract Labour:The Principal Employer may deduct the amount of contributions both employers and
employees, payable in respect of employees engaged through the contractor, from the bill of the
contractor.
The Contract is entitled to deduct the employee contribution from the wages payable to such
contract employee in respect of the period for which the contribution is payable
Following Documents are required for deciding Final Date of Coverage under ESI Act / EPF
Survey:
I.
Manufacturing Unit:1. Date of 1st Trial Production.
2. 1st Electricity Bill.
3. Details of Gala Purchase (viz. copy of the Agreement)
4. 1st Sale Bill
5. 1st Purchase Bill (Machinery Purchase Bill etc.)
6. V.A.T, P.Tax & T.I.N Number Certificate / Service tax registration certificate (if
applicable).
7. Books of accounts (Ledger, cash books etc.) since beginning.
8. Balance sheet/P & L account (in case of Limited company Annual Report since
beginning)
9. Shops & Establishment Registration Certificate/ Factory Licence.
10. Partnership deed (in case of Partnership firm) & Memorandum of Association &
Articles (in case of Limited co.)
11. Salary / Wage register & Attendance Register since beginning.
12. Month wise strength of number of employees since beginning.
13. List of Directors/partners/owners along with their residential addresses.
14. Name of the Bankers, Address of the Bank and Name of the Person responsible for
financial affairs.
II.
1.
2.
3.
4.
5.
6.
7.
8.
III.
1.
2.
3.
4.
5.
6.
7.
8.
9.
Restaurant / Residential Hotel
Above all documents except Date of 1st Trial Production.
Invitation card or paper- cutting of the advertisement Regarding The Inauguration of
the Restaurant/Hotel
Eating House Licence from the Public Health Department (BMC)
Licence for public entertainment in the premises issued by the police department.
1 Sale bill (either restaurant or room sale bill whichever is earlier)
Room sale register.
Exercise Certificate.
Bar permit Licence (if any)
Following Points Jointly Are Taken into Consideration While Clubbing The Units:Unit of Ownership (i.e. Management & Control)
Unit of Labour (i.e. transferability of employees)
Geographical Proximity (i.e. vicinity, bonafides in keeping the unit a part)
Source of Finance (i.e. whether source of finance is same)
Supervision & Control (i.e. whether managed by same person)
Service Conditions of Workmen (i.e. rules applicable, employment contract, if any)
Functional Integrality (i.e. integrated whole- part & parcel of main unit, primary &
dominant activity, subsidiary, minor, incidental)
Unit of Purpose (i.e. production & business, interrelated business)
General (i.e. books of accounts / similarity of nomenclature)
Code Number:On receipt of the Employer‘s Registration Form the Regional Office examines the coverage and
if it is satisfied that the Act applied to the factory / establishment, will allot a 17 digit Code
Number along with User ID and Password to the employer. Only one code Number is allotted
to a factory / establishment even though functionally it may have more than one unit / subunit within the same premises/precinct/station. The Code Number so allotted is required to be
indicated by the employer in all Correspondence with the Corporation, Regional Office and
Local Office.
Sub Code Number:There may be a case where an employer is having the main factory / establishment at one
station and sub-unit, branch office, sales office or registered office at another implemented
station, either within the same State or outside that State. In all such cases, Principle Employer is
required to furnish necessary details to the Regional Director concerned for allotment of SubCode Number to each sub-unit, branch office, sales office & registered office etc.
Return of contribution is required to be submitted separately for the main Code Number and
each Sub-Code Number. The employees working in the branch office/sale office etc. can
draw/claim benefit locally from the nearby Local Office with which the branch office / sales
office, etc. are attached. Similarly, it would be convenient for the workers to avail medical
benefit from the nearby ESI dispensary in the State.
Contributions:E.S.I. Scheme being contributory in nature, all the employees in the factories or establishments
to which the Act applies shall be insured in a manner provided by the Act. The contribution
payable to the Corporation in respect of an employee shall comprise of employer‘s contribution
and employee‘s contribution at a specified rate. The rates are revised from time to time.
Currently, the employee‘s contribution rate (w.e.f. 1.1.97) is 1.75% of the wages and that of
employer‘s is 4.75% of the wages paid/payable in respect of the employees in every wage
period. Employees in receipt of a daily average wage up to Rs.100/- are exempted from
payment of contribution. Employers will however contribute their own share in respect of these
employees.
Wages for ESI contributions: - (To be deemed a wages)
1. Basic Pay.
2. Dearness Allowance
3. House Rent Allowance
4. City Compensatory Allowance
5. Overtime Wages (but not to be taken into account for determining the coverage of an employee)
6. Payment of day of rest
7. Production incentive.
8. Bonus other than Statutory
9. Night shift allowance
10. Heat, Gas & Dust allowance
11. Payment for un-substituted holidays
12. Meal / food allowance
13. Suspension allowance
14. Lay off compensation
15. Children education allowance (not being reimbursement for actual tuition fee)
1.
2.
3.
4.
5.
6.
Maintenance of Registers & Returns:Every Employer should maintain a Register in Form 7 Regulation 32 in respect of every
employee of his factory or establishment.
Every employer shall submit the half yearly Return of Contribution in From 5. Before
12th May & 11th November of current year with Triplicate copies of Challan.
The return of contribution includes the Name of Employee, Insurance Number of
Employees, detail of contribution paid in particularly period and details of wages /
salary paid the in that period, average daily wages/ salary paid.
If number of employees goes beyond 40 number then Return of Contribution in Form 5
should be attested by Chartered Accountant
ESIC Bound Inspection Book.
ESIC Accident Register under Rule 66
Recovery:If any employer fails to pay the amount due in respect of any contribution or any other amount
payable under the Act, the Corporation can recover from the employer damages up to cent
percent of the areas. The corporation is empowered to recover the contribution and the
damages as an arrear of land revenue.
Collection of Contribution
An employer is liable to pay his contribution in respect of every employee and deduct
employee‘s contribution from wages bill and shall pay these contributions at the above
specified rates to the Corporation within 21 days following the end of the Calendar month in
which the contributions fall due. The Corporation has authorized designated branches of the
State Bank of India and some other banks to receive the payments on its behalf.
Contribution Period and Benefit Period
There are two contribution periods each of six months duration and two corresponding benefit
periods also of six months duration as under.
1)
2)
3)
4)
5)
6)
7)
8)
Contribution Period
Corresponding Cash Benefit Period
1st April to 30th Sept.
1st Oct. to 31st March
1st January of the following year to 30th June.
1st July to 31st December of the year following
Benefits:Employee is covered immediately on becoming an employee under the ESI Act, along
with his / her family members, Free medical treatment is offered to covered employees
and their family members, at hospital and dispensaries run by the ESI Corporation. No
limit of expenditure on treatment taken from ESIC Hospital / Dispensary
Maternity benefit for 12 weeks of which not more than 6 weeks should be preceding
confinement
Injury during/ in course of employment resulting in temporary / permanent disablement
entitles the covered employee to a regular payment to substitute his lost wages.
Death during course of employment entitles specified dependents to a regular payment.
Onetime payment of Rs. 10,000/- (w.e.f 01/04/2011) to help meet funeral expenses.
Rajiv Gadhi Shramik Kalyan Yojna (Unemployment to the IPs who have been rendered
unemployed involuntarily due to closure of factory / establishment / retrenchment or
permanent disablement) w.e.f. 1st April 2005
Vocational Rehabilitation Scheme is provided in case of disablement of ain Insured Person
of under 45 years of age and 40 % or more disablement. There is a provision of Free
Supply of physical aids and appliances such as cruthers, wheelchairs, dentures,
spectalcles under the act to insured person
Insured person can avail cashless treatment in the hospitals referred by ESI Hospital.
9) An insured person who retires on attaining the age of superannuation shall be eligible to
receive only medical benefits for himself and his spouse if (i) he had been in the insurable
employment for not less than 5 years and (ii) if he pays contribution of Rs. 120/- every
year in advance.
10) Dependent Parents whose earnings from all sources upto Rs. 5000/- pm (w.e.f.
01/04/2011) are eligible for medical benefits.
11) w.e.f 4th August 2011 an insured person whose claim for any permanent disablement
benefit (PDB) has been admitted shall be paid Rs. 100 (Rupees One Hundred Only) as
conveyance allowance, in addition to his PDB payment, on each visit to Branch Office for
submission of life certificate as required under Regulation 107 of ESI (General)
Regulations. 1950.
12) Treating commuting accidents as employment injury.
13) Payment of long – term benefits (PDB/DB) through Electronic Clearing System (ECS)
14) Minimum dependants‘ pension of Rs. 1200/- per family.
Following Family Members of an insured employee are entitled to get medical
treatment benefits:Where medical benefit is extended to families of insured employees, medical treatment is
available to:(a) The Husband or wife of the insured employee,
(b) The minor legitimate or adopted children of the insured employee dependent upon him,
&
(c) The dependent parents of the insured employee, whose monthly income is upto Rs. 5000/Maternity Benefit:-
1.
2.
3.
4.
5.
Eligibility:Woman shall be insured.
Contributions to be payable for not less than 70 Days (seventy days) in the preceding two
contributions periods
She shall not be on duty for wages.
To attend medical examination, if so required.
To submit medical certificate form Insurance Medical Officer.
Purpose:1. For confinement.
2. For Miscarriage
3. For Sickness caused by Pregnancy, confinement, miscarriage etc.
Quantum of Benefit:1. Payable at twice the standard benefit rate specified under Rule 54 or Rs. 25 whichever is
higher.
2. Confinement expenses (Medical Bonus) of Rs. 5000/- w.e.f. 01/10/2013 when medical
facilities not available.
3. No limit for benefit payable in case of Miscarriage / Confinement arises.
Duration of Payment:1. For twelve weeks in case of confinement.
2. For six weeks in case of miscarriage.
3. For twelve weeks in case of woman‘s death in or after pregnancy
4. For additional days not exceeding one month in case of sickness arising out of pregnancy,
confinement, miscarriage.
Time for Payment:First payment to be made not later than 14 days
Second and subsequent payments in the following month
Requirement by insured woman to claim maternity benefit
1.
2.
3.
4.
Claim for Maternity Benefit for Confinement:Insured woman to give notice of pregnancy in Form 19 before confinement to Branch
Office.
To submit a Certificate of Pregnancy in Form 20 from Insurance Medical Officer.
To submit a Certificate of Expected Confinement in Form 21 from Insurance Medical
Officer.
To submit a Claim for Maternity Benefit in Form 22 from Insurance Medical Officer within
30 days of occurrence of confident.
Claim for miscarriage from Insurance Medical officer:To submit a certificate of miscarriage in Form 18 within 30 days of miscarriage
Claim for Sickness out of Pregnancy / Miscarriage etc.:1. To submit claim in Form 9
2. To submit medical certificate in Form 7 or 8.
Claim in case of death of insured woman:1. Nominee specified in Form I by the deceased woman to submit claim in Form 20 of Reg. 89 A
2. Legal Representative (if no nominee) to submit claim in Form 20.
3. To submit death certificate in Form 21
Rate of Payment of Maternity Benefit:The rate of payment of the maternity benefit is 100% of the average daily wages.
Medical Bonus:Insured Women or Insured Person in respect of his wife are entitled for medical bonus for
Rs 5,000/- provided the confinement occurs at a place where necessary medical facilities are not
available under ESIC institutions w.e.f. 01st October 2013, maximum benefit is given Twice in
entire lifetime of Insured Women.
In the case of Accident to employee (I.P) while on duty:Accident Report in form no 12 is required to submitted to the appropriate Branch Office as well
as to Insurance Medical / I.M.P within 24 Hours of the receipt of notice of injury. In case of fatal
or serious accidents, it must be submitted IMMEDIATELY to avoid legal penal action under
section 85.
1) If the injured person is serious, i.e. it is likely to cause death or permanent disablement
or loss of a member; and
2) In any other case within 24 hours after the receipt of the notice under regulation 65 or of
the time when the accident came to the notice of the employer or of a foreman or other
official under whose supervision the insured person was employed at the time of the
accident or any other person designated for the purpose of the employer.
 Provided that in case of a serious injury, and particularly when the injury results in
death at the place of employment, the report to the Insurance Medical Officer and the
Branch Office shall be sent through a special messenger, or otherwise, as speedily as
may be practicable under the circumstances.
 Provided further that if the accident does not involve absence of the injured person
from work initially, the employer may send report to the Branch Office and the
Insurance Medical Officer but shall do so within 48 hours after the absence from work
subsequently the results from the injury.
Records to be kept ready for ESI Inspection:1. Attendance Register / Muster Roll.
2. Salary / Wage Register/ Payroll
EC Statement (Employees & Employer‘s Contribution) Statement.
Employee‘s Register U/R 32 (Form 7)
Accident Register in Form 11.
Return of Contribution (RC- Form 5)
Receipted Copies of Challan
Bound Inspections Book
Books of Accounts viz. Cash/Bank Book, Expenses register, Sales/ Purchase Register,
Petty Cash Book, Ledger, Supporting Bill and Vouchers, along with Delivery Challan (if
any), & Balance Sheet.
10. At the time of ESI inspection when job work done outside the factory / establishment
premises, which are not having independent code number & engaging less than 10 or
20 employees also when no supervision was exercised & when principle employer do
not have any rejection power then following detail / statement to be given to the
Insurance Inspector from the books of accounts:a) Name and address of the Contractor / Immediate Employer and Code Number (If any)
b) Nature of Work
3.
4.
5.
6.
7.
8.
9.
c) Head of A/c under which payment booked
d) Payment made
w.e.f. 1/8/2007, employees, who are in receipt of daily wages up to and inclusive of Rs.
100/- will not be required to pay employees share of contribution. However,
employer‘s share of contribution would continue to be paid.
The Benefits are Revised w.e.f 01st July 2011 are as follows:1) In rule 2‖
i)
For clause (1A), the following clause shall be substituted, namely (1A) ―average daily
wages during a contribution period‖ in respect of an employee, means the aggregate
amount of wages payable to him during that period divided by the number for which
such wages were payable.
ii)
For clause (7A), the following clause shall be substituted namely:‗(7A) ―standard benefit rate‖ means average daily wages obtained by dividing the total
wages paid during the contribution period by the number of days for which these
wages were paid.
2) In rule 52, for the words ―rupees seventy‖, the words ―rupee one hundred‖ shall be
substituted;
3) In rule 55, for sub-rule (2), the following sub-rule shall be substituted namely:―(2) The daily rate of sickness benefit in respect of a person during any benefit period
shall be Seventy Percent, of the standard benefit rate of that person during the
corresponding contribution period rounded to the next higher rupee‖
4) In rule 56, for sub-rule (5), the following sub-rule shall be substituted namely:―(5) The daily rate of Maternity Benefit payable in respect of confinement occurring or
expected to occur during any benefit period shall be equal to the Standard Benefit Rate
in respect of the insured woman during the corresponding contribution period,
rounded to the next higher rupee, or rupees twenty – five, whichever is higher.
5) In rule 57, for sub-rule (3), the following sub-rule shall be substituted namely:―(3) The daily rate of disablement benefit shall be ninety percent of the standard benefit
rate in the contribution period corresponding to the benefit period in which the
employment injury occurs, rounded to the next higher rupee.
i)
ii)
Provided that where an employment injury occurs before commencement of the first
benefit period in respect of a person, the daily rate of disablement benefit shall be: Where a person sustains employment injury after the expiry of the first wage period in
the contribution period in which the injury occurs, ninety percent, of his average daily
wages in that wage period, rounded to the next higher rupee;
Where a person sustains employment injury before the expiry of the first wage period
in the contribution period in which the injury occurs, ninety percent of his wages
actually earned or which would have been earned, had he worked for al full day on the
date of accident, rounded to the next higher rupee.
Explanation:- The disablement benefit calculated as aforesaid shall be called the
―Full Rate‖
6) In rule 58, for sub-rule (2) the following sub-rule shall be substituted namely:―(2) The daily rate of dependants benefit shall be ninety percent of the standard
benefit rate in the contribution period corresponding to the benefit period in which the
employment injury occurs.
Provided that where an employment injury occurs before the commencement of the
(i)
(ii)
first benefit period in respect of a person, the daily rate of dependants‘ benefit shall be:Where a person sustains employment injury after the expiry of the first wage period in
the contribution period in which the injury occurs, ninety percent of his average daily
wages during that wage period rounded to the next higher rupee.
Where a person sustains employment injury before the expiry of the first wage period
in the contribution period in which the injury occurs, ninety percent of wages actually
earned or which would have been earned had he worked for a full day on the date of
accident, rounded to the next higher rupee.
BENEFITS AT A GLANCE
BENEFITS
a) SICKNESS
BENEFIT
CONTRIBUTORY
CONDITIONS
sickness
specified
diseases
Leprosy
TO
WHOM
PAYABLE
RATE
I.P. Should work 91
Days
Cash 70% of S.B.R.
for wages for 78 Benefits within Two
no. of days in the Benefits Periods
corresponding
C.P.
19.9.1998)
Extended
benefit for
long term
like
TB
ETC.
DURATION
Only
to
the
insured
person.
(w.e.f.
In
Insurable
employment for
at least two years
should
pay
contribution for
minimum of 156
days
in
the
309 days duration 80% more than
has been extended the S.B.R
Only
to
beyond 400 days (91
the
days S.B. plus 309
insured
days E.S.B.) to two
person
years in deserving
cases.
Enhanced
sickness preceding 4 C.p‘s 7 days for vasectomy
as
for &
Benefit
(for Same
14days
for
sickness benefit tubectomy extended S.B.R.
undergoing
Only
to
at (a) above
sterilization
the
in cases of postoperation for family
operative
Insured
Planning)
complications etc
Person
Disablement benefit No Condition
(employment injury
)
In case of temp
disablement: as long
as incapacity lasts &
in case of permanent
disablement: for life
time.
(a)
for
Only
to
Temporary
insured
Disablement,
person.
90% of S.B.R.
(b)
For
permanent
Total
Disablement specific in Part 1 to
2 schedule at the 90% of S.B.R.
(c)
For
permanent
partial
disablement resulting from an
injury specific in Part-II of the
2nd Schedule at such %age of the
Full Rate as specific in the said
schedule as being the %age of the
loss of earning capacity caused
by the injury.
Explanation: - Where more injuries than one are caused by the
same accident, the
rate of benefit payable under clauses (c) &
(d) shall be aggregated but not so in any case as to exceed the
FULL RATE and in cases of disablement not covered by clauses
(a), (b), (c) & (d) at such rate, not exceeding the FULL RATE, as
may be provided in the regulations.
)
For
permanent
partial
disablement resulting from an
Dependent‘s Benefit i ons
(employment injury)
3/5th of FULL RATE, if there
are 2 or more widows, the
amount payable to the
widow shall be divided
equally between the widows.
2/5th of the FULL RATE, if
there are 2 or more sons, the
amount payable to the son
shall be divided equally
between the sons.
Subject to min. of Rs. 14/-.
1. To the widow/s
during life time until
remarriage.
2. To the widowed
Mother
To the legitimate or
adopted SON/S until
he attains the age of
25yrs. (w.e.f. 1st June
2010)
injury not specified in part –II
of the 2nd schedule at such
%age of the Full Rate payable in
the case of Permanent Total
Disablement as in Proportionate
to the loss of earning capacity
permanently caused by the
injury.
To the legitimate or
adopted
unmarried
daughter/s until she ---------------do--------------attains the age of 25yrs.
(w.e.f. 1st June 2010) or
until
marriage,
whichever is earlier.
(in case the deceased 3/10th of the FULL RATE.
person does not leave a
widow or legitimate or 2/10th of the FULL RATE
adopted child. D.B.
shall be payable to …..
a)
parent
or
grandparent, for a life.
----------------do---------------b) Any other male
dependent, until he
attains the age of 18
yrs.
c) Any other female
dependent, until she
attains the age of 18
yrs. or until marriage
whichever is earlier.
An insured person whose PERMANENT DISABLEMENT has been assessed as final and who
has been awarded permanent disablement benefit at a rate not exceeding Rs. 5/- per day may
apply for a lump- sum payment and such amount shall be determined by multiplying the daily
rate of permanent disablement benefit by the figure indicated in Col. 2 of the schedule III of the
Regulations.
Maternity Benefit
Payment
of 12 weeks of which 100% of average Only
to
wages; the
contribution for not more than the 6 daily
70 days in one or weeks can precede subject to min of Insured
two consecutive the expected date of Rs. 25/-p.day.
Person.
confinement.
periods
Medical bonus of
6
weeks
for
Rs. 5,000/- per
miscarriage or for
confinement w.e.f
medical termination 01/10/2013where To insured
of
pregnancy. ESI
hospital woman or
Additional payment facility is not in r/o wife
for one month for availed for child of I.P
complications (pre or delivery.
post) arising out of
pregnancy.
Medical Benefit
Funeral Expenses
No Condition
From the date of
entry of an employee
into
an insurable
employment as long
as
he
remains
insurable
employment
and
thereafter for certain
additional period.
No
conditions One time lump-sum
(i.e. merely by payment
virtue of being
an
insured
person)
Full
Medical Person as
care including well
as
hospitalization
his/ her
family
Members
as defined
u/s 2(11)
of the Act.
Not more than
Rs. 10,000/(w.e.f.
01/04/2011 )
To the
eldest
surviving
member of
the family
of the
deceased
I.P or to the
person who
actually
incurs the
expenditur
e on the
funeral of
an I.P.
Rehabilitation
Allowance
No Condition
Medical benefit to
insured persons who
ceases
insurable
employment
on
account of permanent
disablement
No
conditions
but an I.P has to
pay Rs. 10/- pm
in Lump-sum for
one
year
in
advance
every
year i.e. Rs. 120/-
Medical Benefit to
retired
insured
Period (Old Age
Medical Care)
1)Insurable
employment for a
period of 5 years &
2) In case of
permanent
physical
disablement
during the course
of
insurable
employment.
3) payment of
Contribution @ Rs.
10/- pm in Lump
Sum for one year
in advance, each
year. Rs. 120/-
For each day of
which I.P. remains
admitted in Artificial
Limb
Centre
for
fixation repair or
replacement
of
artificial limb.
Till the date on
which an I.P would
have attained the age
of superannuation
Till the time yearly
contribution is paid
to
the
concerned
office
of
the
corporation
Double
the Only
standard sickness the I.P
benefit rate but
not less than full
wages.
-----
-----
to
Medical
Benefit to
IP
and
spouse
Insured
person
and
his
spouse
OTHER BENEFITS
Now it has added the benefit for workers for the accidents happening while commuting to
the place of work and vice versa; (w.e.f. 1st June 2010)
Unemployment Allowance (Rajiv Gandhi Shramik Kalyan Yojana):Unemployment Allowance is payable to those workers facing involuntary unemployment due
to closure of factory/ establishment; retrenchment or permanent invalidity arising out of nonemployment injury. The daily rate of unemployment allowance is at par with the standard
sickness benefits rate. Which is just above 50% of the average daily wages. This allowance is
payable for a maximum period of 12 months either in one spell or in different spells of not less
than one month‘s duration the insured persons eligibility condition has now been relaxed to
three years from earlier five years, for being able to avail the unemployment allowance. Medical
Care also provided during this period.
To avail this benefit the insured person should have been entitled for sickness benefit during the
last four contribution periods immediately preceding the date of unemployment
Supply of special aids.: Insured persons and members of their families are provided artificial
limbs, hearing aids, artificial dentures, spectacles (for insured person only)& artificial
appliances like spinal supports, cervical collars, walking callipers, crutches, wheel chairs and
cardiac pace makers, dialysis/ dialysis with kidney transplant etc. as part of medical care
under the ESI scheme.
CONTRIBUTION PERIOD(C.P)
BENEFIT PERIOD (B.P)
DATE OF
SUBMISSION OF
RETURN
1ST April to 30th September
1st October to 31st March
1st January to 30th June
1st July to 31st December
11th November
12th May
ESI – IMPORTANT CHANGES AT A GLANCE
1. Contribution
2.
3.
4.
5
6.
7
Repealing of Chapter V A and
consequent
discontinuance
of
Employers Special Contribution
Rate of Contribution
Employees Share Employers Share
) 2.00%of wages 5%of TWB = 7%
) 2.25%of wages 5%of TWB = 7.25%
) 1.50%of wages 4%of TWB = 5.50%
) 1.75%of wages 4.75%of TWB = 6.50%
Total Wages*
Ceiling Limit for coverage
u/s 2(9)
Rs. 400/Rs. 500/Rs. 1000/Rs. 1600/Rs. 3000/Rs. 6500/Rs. 7500/Rs. 10000/Rs. 15000/Rs. 25000/- for Physically
Handicapped
Ad hoc Calculation of Assumed wages per month
Rs. 350/Contribution
Rs. 440/Rs. 550/Rs. 880/Rs. 1650/Rs. 3575/Rs. 4125/Rs. 5500/Rs. 8250/Coverage of employees
working in H.O/B.O/S.O u/s 2(9)
etc
Extension of coverage to u/s 1(5) of the Act.
Commercial
sectors in Sectors Covered:
Mumbai Region
Hotels & Restaurants
Cinema Theatres including Preview
Theatres
Shops
Newspapers Establishments
Road Motor Transport
Rate of Interest
Rate
6%
12%
15%
12%
w.e.f. 01-07-1973
07-07-89 to 26-01-85
27-01-85 to 31-3-92
01-04-92 to 31-12-96
From 01-01-1997
Date from which applicable
Up to 30-6-73
*excluding
Form 01-07-73
1) over time
From 3011-75
2)
washing
From 27-01-85
allowance where
From 01-04-92
uniform supplied
From 01-01-97
for employees
From 01-04-04
From 01-10-06
From 01-05-10
From
01-042011
From 01-06-1976
From 07-09-1980
From 01-04-1983
From 27-01-1985
From 01-04-1992
From 01-01-1997
From 01-04-2004
From 01-10-2006
From 01-05-2010
w.e.f. 28-01-1968
w.e.f. 12-11-1978
--------do---------------do---------------do-------w.e.f. 13-03-1989
Period from which applicable
Up to 19-10-1989
From 20-10-1989
From 01-09-1994
From 01-10-2005
8
Rate of damages (by way
of penalty)
19%
13%
Slab System ----------------------
Below 2 months
5%
2months & above,
But below 4 months 10%
4 months & above,
But below 6 month
15%
6 months & above
25%
(subject to max 100%)
LIST OF DISEASES FOR
ADMISSIBLE
1. Tuberculosis
2. Leprosy
3. Chronic Emphysema
4. Brocnhiatesis
5. Intersistial Lung Diseases
6. HIV/ AIDS
7. Malignant Diseases
8. Diabetes Mellitus with
proliferative
retinopathy/
diabetic
foot/ nephropathy.
9. Monoplegia
10. Hemiplegic
11. Paraplegias
12. Hemiparesis
13. Intracranial
space
occupying lesion
14. Spinal
Cord
Compression
15. Parkinson‘s disease
16. Myasthenia
Gravis/
Neuromuscular
Dystrophies
17. Immature cataract with
vision 6/60 or less.
WHICH
EXTENDED
From 09-75 up to 19-10-89
From 20-10-89 up to 31-12-91
From 01-01-1992
SICKNESS
18. Detachment of Retina
19. Glaucoma
20. Coronary
Artery
Diseases
a) Unstable Angina
b) Myocardial
Infraction
with ejection less than
455.
21. Congestive Heart Failure
Left/ Right.
22. Cardiac
Valvular
Diseases with failure
complications.
23. Cardimyopathies
24. Heart
Disease
with
surgical
Intervention
along
with
complications.
25. Chronic
Obstructive
Lung Disease (COPD)
with congestive heart
failure (Cor Pulmonale)
26. Cirrhosis of liver with
ascitie / chronic active
hepatitis
BENEFIT
IS
27. Dislocation of vertebra /
prolapsed
of
intervertebral disc.
28. Non union or delayed
union of facture
29. Post Traumatic Surgical
amputation
of
lower
extremity.
30. Compound Fracture with
chronic ostemyelities
31. Psychosis – the following
sub groups:a) Schizophrenia
b) Endogenous depression
c) Manic
depression
Psychosis (MDP)
d) Dementia
32. More than 20% burns
with
infection/
complication.
33. Chronic Renal Failure
34. Reynaud‘s
diseases/
Burger‘s disease.
Restrictions:When a person is entitled to any of the benefits provided under the Act, he shall not be
entitled to receive any similar benefit under any other enactment. An insured person will
not be entitled to receive for the same period:
1) Both sickness benefit and maternity benefit; or
2) Both sickness benefit and disablement benefit for temporary disablement; or
3) Both maternity benefit and disablement benefit for temporary disablement.
When a person is entitled to more than one of the benefits, he has an option to select any
one of them.
Protection:The employer cannot dismiss, discharge or otherwise punish an employee during the
period he/she is in receipt of sickness benefit or maternity benefit, or of disablement
benefit, or is under medical treatment for sickness, or is absent from work as a result of
illness which arises out of pregnancy or confinement. Any notice of dismissal, discharge
or reduction during the period specified above is invalid and inoperative:
An employer can discharge or punish an employee on due notice if:
1) He/she has received temporary disablement benefit and remained absent for six months
or more continuously;
2) He/she is under medical treatment for sickness, otherwise than T.B. or a disease arising
out of pregnancy, and has remained absent continuously for six months or more; and
3) He/she is under medical treatment for T.B or a malignant disease and has remained
absent continuously for 18 months or more.
22
Offences and Penalties:Offences
Whoever, knowingly makes any false
statement or representation for the purpose
of (a) claiming or increasing any benefit or
payment allowable to him, or (b) avoiding
any payment payable by him
a) Failure to pay employees‘ contributions
deducted from their wages
Failure to pay contributions
Penalties
Imprisonment upto 6 months or fine upto
Rs. 2,000 or both
Imprisonment upto 3 years (minimum one
year) and fine of Rs. 10,000/Imprisonment upto 3 years (minimum 6
months) and fine of Rs. 5000/Deduction of any sum from or reduces Imprisonment upto one year or fine upto
wages of an employee on account, of Rs. 4000/- or both
employers contribution
Reduction of the wages or any privilege or
Same as above
benefits admissible to
contravention of section 72
an
employee
in
Dismissal / discharge of an employee in
contravention of section 73
Failure to submit any return or submission
of false return
Obstruction of any inspector in allowing him
to discharge his duties
Contravention of any other provision of the
act, rules or regulations
On every subsequent offence committed
after conviction for the same offence being so
mentioned at 2(a) or (b) above
On every subsequent offence committed
after conviction for the same offence being
any other offence
Same as above
Same as above
Same as above
Same as above
Imprisonment upto 5 years (minimum 2
years) and fine of Rs. 25000
Imprisonment upto 2 years and fine of
Rs. 5000/-
Penalties:Different punishment have been prescribed for different types of offences in terms of
Section 85: (I) (Six months imprisonment and fine), and 85-A: (five years imprisonment
and not less than 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.
Provision for non-payment:
For employees‘ contribution : Imprisonment for 1yrs. to max. 3yrs. and/ or fine of Rs.
10,000/For employers‘ contribution : Imprisonment for 6 months to max 3rs. And/or fine of Rs.
5,000/23
Employees Insurance Court:A dispute arising under the Act shall be decided by the Employees‘ Insurance Court and
not by a civil court. The Employees‘ Insurance court shall be constituted by the State
Government for such local areas as may be specified and consisting of such number of
judges as the Government may think fit.
Conditions for Admission of Certain Disputes:No matter which is in dispute between an employee and the ESI Corporation in respect of
any contribution or any other dues shall be admitted unless the employer deposits with
the court
@ 50% of the amounts due from him as claimed by the Corporation.
The court may, however waive or reduce the amount to be deposited for reasons to be
recorded in writing.
Appeal:An appeal shall made to the High Court against an order of an Employees‘ Insurance
Court, if it involves a substantial questions of law. The appeal should be preferred within
60 days.
Miscellaneous:Cash benefits payable under the Employees‘ State Insurance act are not liable to
attachment or sale in execution of any court decree or order. Also, the right to receive any
benefit is not transferable or assignable.
Where a dispute arises under the provisions of the Act, that matter has to be decided by
the Employees‘ Insurance Court and not by civil court. An appeal will lie to the high court
from an order of the Employees‘ Insurance Court if it involves a substantial question of
law. The period of limitation for appeal is 60days. The delay can be condoned for
sufficient reasons.

Any arrears payment for past period paid to employees on that amount ESIC Contribution
is not payable
For example: - In month of April 2012 a particular employee is earning salary / wages Rs. 14000/per month; but management has decided to increase the salary of that employee from Rs. 14000/per month of Rs. 16000/- in month of August 2012 w.e.f. 01st April 2012, so in this case the
company will pay arrears dues for the month of April, May, June, July, i.e. Rs. 2000/- per month
for 4 months i.e. Rs 8000/- on this arrears amount ESIC contribution is not payable, but in month
of August 2012 Salary / Wages Rs. 16000/- on that amount ESIC Contribution is payable till
completion of Contribution period i.e. till September 2012
24
Non-implemented area in Maharashtra
Sr.
No
Area
District
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
Alibaug Riagad
Asangaon & Shahpur
Dronagare
Khopoli
Mahad
Murbad
Nagothane
Patalganga
Panvel
Pen
Roha
Rasayani
Uran
Dhanu Road
Palghar
Tarapur (Brisor)
Anchalpur `
Bhugaon
Durgapur
Gondia
Gadegaon
Jalna
Jam
Kalmeshwar
Khamgaon
Koradi
Latur
Madgi (Tamsar)
Mouda
Paithan
Wahegaon (MIDC)
Wardha
Warthi
Warora
Yeotmal
Ahmednagar
Baramati
Bavdhan BK & Khurd
Bhor
Bhusawal
Chakan
Chincholi
Chiplun
Thane
Thane
Thane
Kolaba
Raigad
Thane
Raigad
Kolaba
Kolaba
Raigad
Raigad
Kolaba
Raigad
Thane
Thane
Thane
Amravati
Wardha
Chandrapur
Bhandara
Bhandara
Jalna
Wardha
Nagpur
Buldhana
Nagpur
Latur
Bhandara
Nagpur
Aurangabad
Aurangabad
Wardha
Bhandara
Chandrapur
Yeotmal
Ahmednagar
Pune
Pune
Pune
Jalgaon
Pune
Solapur
Pune
44
45
Daund
Deepanagar Shivar
Pune
Jalgaon
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
Dindhori
Dushkheda
Ekrahare
Gokul Shirgaon
Hatkanagale
Jaisingpur
Jejuri
Kanhe - Phata
Karad
Karmala
Khandala
Khandari Shivar
Khed
Kirloskarwadi
Kudal
Kumbhari
Lonawala(Peripheral)
Mirzol
Nandurbar
Ogalewadi
Pachora
Palus
Phursungi
Phopali
Pirangut
Ranjangaon
Ratnagiri
Sahada
Saswad
Sajani
Sanaswadi
Shiroli
Shrirampur
Shindekhed
Shivanewadi
Shirwad
Sinnar & Malegaon
Talegaon(Peripheral)
Vengurla
Wai
Walchandnagar
Walsang
Nasik
Jalgaon
Nasik
Kolhapur
Kolhapur
Kolhapur
Pune
Vadgeon
Satara
Solapur
Satara
Bhusawal
Ratnagiri
Sangli
Sindhudurg
Solapur
Ratnagiri
Jalgaon
Satara
Jalgaon
Sangli
Hadapasar
Satara
Pune
Pune
Ratnagiri
Dhule
Pune
Kohlapur
Pune
Kolhapur
Ahmednagar
Dhule
Kolhapur
Kolhapur
Nasik
Sindhu Durg
Satara
Pune
Solapur
25
List of Various Forms used under ESI:FORM NO.
SUBJECT
RELEVANT
REGULATION
TO BE USED BY
FORM-01
FORM-01(A)
Employer's Registration Form
Form of annual information on
factory/establishment covered under ESI Act
Declaration Form
Family Declaration Form
Addition/Deletion in Family Declaration Form
Return of Declaration Form
Return of Contribution
Advance payment of contribution
Return of Contribution
Register of Employees
Claim for Sickness/ Temporary Disablement
Benefit/Maternity Benefit
Accident Book
Accident Report from Employer
Claim for Permanent Disablement Benefit
Claim for Dependent Benefit
Claim for periodical payment of Dependent Benefits
Claim for Maternity Benefit and notice of work
Claim for Maternity Benefit after the death of an
Insured Women leaving behind the child
Funeral Expenses Claim
Life Certificate for Permanent Disablement Benefit
Declaration and Certificate for Dependents Benefit
Wage/Contributory record for disablement benefit
Certificate of re-employment/continuous
employment
Application for change in particulars of Insured
Persons regarding change of Branch
Office/Dispensary
Declaration form regarding payment to the legal
heir/representative of the deceased IP
Particulars of contribution in case Return of
Contribution in respect of an IP not sent
Application for duplicate Identity Card
Certificate of Employment
Certificate of Entitlement
Certificate of continuous employment for Extended
Medical and Sickness Benefit
Claim for conveyance allowance and/or
compensation for loss of wages for an IP appeared
before the medical board
10 B
10 C
Employer
Employer
11 & 12
15-A
15-B
14
26
31
31
32
63 & 89(B)
Employer
Employer
Employer
Employer
Employer
Employer
Employer
Employer
IP/Beneficiary
66
68
76(a)
80
83(A)
88, 89 & 91
89(A)
Employer
Employer
IP/Beneficiary
IP/Beneficiary
IP/Beneficiary
IP/Beneficiary
IP/Beneficiary
95(E)
107
107(A)
Beneficiary
IP/Beneficiary
IP/Beneficiary
Employer
Employer
FORM-1
FORM-1(A)
FORM-2
FORM-3
FORM-5
FORM-5(A)
FORM-5
FORM-6
FORM-9
FORM-11
FORM-12
FORM-14
FORM-15
FORM-16
FORM-19
FORM-20
FORM-22
FORM-23
FORM-24
ESIC-32
ESIC-37
ESIC-53
ESIC-63
ESIC-71
ESIC-72
ESIC-86
ESIC-105
ESIC-126
ESIC-142
IP/Beneficiary
IP/Beneficiary
Employer
IP/Beneficiary
Employer
Employer
Employer
IP/Beneficiary
New Amendment passed by parliament on 24th May 2010
(Gazette Notification published by Ministry of Law & Justice on 1st June 2010)
FOLLOWING AMENDMENTS WILL BE EFFECTIVE FROM 1ST JUNE 2010
 The age limit of the dependants has been enhanced from 18 to 25 for the purpose of dependants‘
benefit. It will benefit large number of workers.

It extended social security benefits to those apprentices who are covered by Standing Orders and
also to those trainees whose training is extended to misuse exemption granted to apprentice from
provisions of the ESI Act.
 The definition of ―Factory‖ under Section 2(12) has been amended to facilitate coverage of smaller
factories and cover all factories which employ 10 or more persons whether these are run by power
or without power.
 DG-ESIC is being made Chairman of Medical Benefit Council to improve quality of medical
benefits.
 It has added the benefit for workers for the accidents happening while commuting to the place of
work and vice versa;
 The exemptions shall be granted only prospectively as the ESIC already has made provision of
infrastructure to provide service to the IPs for the past period
 The procedure for determination of contribution has been streamlined to avoid harassment of
employers as the Inspectors now no more to inspect the books of accounts of the establishment
beyond five years as under present system of unlimited period.
 It extended medical treatment to those who retire under Voluntary Retirement Scheme or take
premature retirement
 U/s. 45AA of ESI Act:After section 45A of the principal Act, the following section shall be inserted namely;
A) 45AA. If an employer is not satisfied with the order referred to ain section 45A, he may prefer an
appeal to an appellate authority as may be provided by regulation, within sixty days of the date of
such order after depositing twenty – five percent, of the contribution so ordered or the
contribution as per his own calculation, whichever is higher, with the Corporation
B) Provided that if the employer finally succeeds in the appeal, the Corporation shall refund such
deposit to the employer together with such interest as may be specified in the regulation.
Project Pehchan (Biometric Cards)
 All Insured Persons will be issued with two magnetic cards, one for the Insured persons & the
other for family members
 Central database will be created with demographic and biometric details of Insured persons and
their families.
 Insured Persons and their family members can avail treatment in any ESI Hospital or dispensary
across India.
 Biometric details (finger prints) to verify and authenticate Insured Persons and their families
through card swipe.
27
 Employers can submit their Return of Contribution online
 Employers can collect information on employees‘ benefit availed by respective employees online.
 One time registration. Employees will carry forward with same set of cards every time they
change employment.
 Duplication of enrolment can be avoided
 ESI Corporation has tied up with several Private Hospital in various state/Region for Super
Speciality treatment
 10 digit Insurance Number should be shown in RC form No 5.
 17 Digit New ESI Code Number should be shown in all the correspondence as well as in Forms
and returns.
28
Source: ESI ANNUAL REPORT 2011-2012
29
System Generated Challans
As you may be aware that the IT Roll Out is going to be implemented in all the regions as well as
hospitals in a short-while for which communication will be issued by ESI department. Collection
of contribution from employers and their accounting will undergo a vast change once the system
is fully computerized. All payments and contributions into the ESIC account will be through
challans generated through system.
The existing system, whereby challans are filled in by the employers/payers and presented before
the bank along with the payments will become a thing of the past.
The employer intending to make the payments are required to generate a challan form through
ESI portal/module from the data base after entering the requisite details of additions
and
deductions. Due amount will be calculated by the system itself and after entering the amount to be
paid, a print out shall be taken.
ESI will designate just one or two SBI branches in each region/SROs which alone will accept the
payments through conventional challans and all other branches will accept payments through
system generated challans. this is being allowed to avoid any inconvenience to the employers as it
may be difficult for the employers to suddenly switch over to the new system and at the same time
it will give little amount of pressure to the employers to adhere to the new system.
For system generated challans, the following data are required to be filled in the format
(available on ESI website) and after filling the required information a challan can be generated
through system which is required to deposit the contributions with SBI Branch.
User ID and Password has already been circulated by ESI dept. to individual employers
separately. [If you have not received the same, you are requested to prepare authority letter, to
collect the same from branch office of ESI).
The requisite data format is enclosed herewith for your reference and records.
Important
No challan will be generated unless and until the data which are required for generation of challan
is complete in all respects. (w.e.f. 1st April 2011)
Filling of declaration forms/monthly returns / temporary insurance card / biometric card etc.
As mentioned above about system generated challans and payments, similarly the personal details
of employees have to be done through ESI portal/module only.
The requisite data format is enclosed herewith for your reference and records.
In order to obviate duplication of insurance number, please ensure to collect details of the
previous employment of candidate and his insurance number also. (Please ask for any
documentary proof for insurance number)
Please note that it is in the interest of employee to give previous details of insurance number; if
you generate data for new number and at a later stage if it is found to be at variance at the time of
bio metric card procedure then the employees and family members may not be able to get benefits
from the ESI scheme.
30
The requisite data format which is enclosed herewith has to be filled in by the employee
concerned on the very first day / date of his/her working so as to register the concerned employee
with the esi dept. from the day one only.
Presently through online feeding of details of employee concerned, the system will automatically
generate tic (temporary insurance card) which should affix employer‘s address and signatory and
signed by authorized person of the employer and employee concerned and after that employee
concerned and his/her family members has to do the bio metric card procedure on or before the
date which is printed on his/her temporary insurance card.
Advantages for computerized scenario of ESI to employee:Once the ESI department fully upload the system at hospitals/dispensaries/doctors/ESI
branches/ private hospitals/ call centre etc the insured person/insured woman is no more
required to visit the ESI office for any things, such as the cash payments/ maternity benefits /
accident benefits / reimbursement etc will be directly credited into the bank account of employee
concerned.
Employee/family of employee can avail through his bio metric card medical benefits all over India
with ESI Hospitals/Dispensaries/Pvt. Hospitals (with whom ESI has and may tied up)
1)
2)
3)
4)
Advantages for computerized scenario of ESI to employer:Day to day information about the ESI on computer.
No need to send employee at ESI branch for any clerical work.
No need to file six monthly returns.
No need to maintain 32-Register / accident register and any other register which are presently
generated.
You will find data after putting user id and password in the insured person details which is
incomplete or some employees‘ data may not be available, in such cases the employer is
requested to check and correct the same before going for monthly payment option.
Lastly and most important for doing all the system generated things it is necessary to have a
computer/laptop with internet connection and printer.
Recent Court Judgement:-
1) Order of attachment of property of Director of company for ESI contribution was held without
jurisdiction:The petitioner was formerly a director of the company known as Kiran Fashions Pvt. Ltd of which
her husband was yet another director. There was one more company known as Kiran Creations
Pvt. Ltd. of which the petitioner‘s husband was one of the Directors. The respondent passed an
order under sec. 45-A of the ESI Act against both the companies for payment of certain amounts
towards ESI contributions. The said orders became final since they were not challenged by the
respective companies. Subsequently recovery certificates were also issued in order to recover the
said amount. Pursuant to the recovery certificate, the seconds respondent passed the impugned
order of attachment of the property of the petitioner. Feeling aggrieved thereby the petitioner
challenged the same by filling a writ petition in the High Court.
31
-
The only question before the High court was whether recovery of dues from the company, the
property of directors, both past and present, could be attached? The high court observed that if the
contributions have not been paid the same can be recovered from the assets of the company and
not from the personal assets of the directors by making them personally liable. Directors cannot be
treated ipso facto as owners. It was therefore held that the impugned order was without
jurisdiction. Hence it was quashed and set aside.
H.C.Mad, LLJ III 201 P. 647, Rani K. Lulla v. Employees‘ State Insurance corpn. Chennai.
2) When the death of the employee was due to tuberculosis of lungs, it was held to be occupational
disease, the dependents are entitled to get the dependency benefit under the ESI Act, 1948.
The deceased was working in Subhlaxmi Mills and he died on 17-08-1991 due to chest disease in a
hospital. The appellants are the legal heirs of the deceased and they filed an application in the ESI
court for getting the dependency benefit. But it was dismissed by the ESI court. Hence they filed
an appeal in the High court. It was contended on behalf of the appellants that it was proved
beyond reasonable doubt before the ESI court that tuberculosis was sustained by the deceased
workman as the cotton and dust went into the lungs of the deceased while filling up bobbins
during the course of employment in Subhlaxmi Mills. It was further pointed out that the room in
which the deceased workman was working did not have a window but only a door and in view of
the unhygienic working condition prevailed at that place of employment. The deceased workman
became a patient of tuberculosis.
The high court referred to the evidence of the doctor who deposed that if a person working in a
room where dust and cotton are spread, there are chances of tuberculosis of lungs beings suffered
by the person and due to infection of the same cardiac failure can also occur. It appears that doctor
further stated that the deceased workman was suffering from lung tuberculosis but the disease
shown in the schedule III part – C Sl. No. 3 was different. The High court referred to the said
schedule which read;
Sr. No. bronchopulmonary diseases caused by cotton, flax hemp and sisal (Byssinosis)
All work involving exposure to the risk concerned.
-
The high court held that the injury caused to the deceased workman would fall at sr. No.3 of part
– c of III schedule of the act and merely because the doctor said that the said provision was not
applicable in the present case, it cannot be said that it was not applicable. The High court held that
there was miscarriage of justice. Consequently the high court allowed the appeal and set aside the
order of the ESI court. It was held that the appellants were entitled to get compensation as per the
provisions of the ESI act with interest at the rate of 9% from the date of the application till
realization.
H.C. Guj. CLR I 2011 P. 845, Radhaben Gopalbhai & Ors. V. ESIC
Summary:The Employees‘ State Insurance Act applies to all power using factories employing 10 or more
persons and to all non-power using factories employing 20 or more persons. Persons whose
remuneration (including overtime) does not exceed Rs. 15000/- a month are covered under the
Act. The employees‘ State Insurance Scheme provides for sickness and extended sickness benefit,
maternity benefit, disablement benefit, dependants‘ benefit, medical benefit, funeral benefit, and
so on. The scheme is administered by a corporate body called the Employees‘ State Insurance
32
Corporation. The chief executive officer of the corporation is its Director General, who is also an
ex-officio member of the corporation and its standing committee. The ESIC has set-up a network
of regional and local offices all over the country for implementation of the scheme.
33
ESI Dispensaries in Maharashtra
Sr.
No
1.
Name of
Dispensary
Andheri
2.
Chembur
3.
J. J. Hospital
4.
Kalyan
5.
Kandivali
6.
7.
Mahindra
Industrial
Mulund
8.
Malad
9.
Parel
10.
Ulhasnagar
11.
Vashi
12.
Vile Parel
13.
Wagle Estate
14
Worli
15
Rabale
16
Kandivali
17
Akola-I
18
Address
Med. Offr. Incharge, E. S. I. Dispensary, ESI Hospital,
Central Road, Andheri, Mumbai – 400 093
Med. Offr. Incharge, E. S. I. Dispensary, Dr. Joshi Hospital
Bldg, Plot No. 70, Opp. Ambedkar Udyan, Chembur,
Mumbai – 400 071
Med. Offr. Incharge, E. S. I. Dispensary, J. J. Hospital
Compound, Byculla, Mumabi – 400 008
Med. Offr. Incharge, E. S. I. Dispensary, Rukuminibai
Muncipal, Kalyan, Near Kalyan Rly. Stn,
Med. Offr. Incharge, E. S. I. Dispensary, ESIS Hospital,
Charkop Industrial Estate, Charkop, Kandivali (W), Mum67
Med. Offr. Incharge, E. S. I. Dispensary, 109, Mahindra Ind.
Estate, Road No. 29, Opp Nehru Garden, Sion (E), Mum- 22
Med. Offr, Incharge, ESI Dispensary, E. S. I. Hospital, Lal
Bahadur Shashtri Marg, Mulund (W),
Mumbai – 400 080
Med. Offr, Incharge, ESI Dispensary, S. K. Patil Arogyadham,
Datari Road, Malad (E), Mumbai – 400 064
Phone No.
28367206
25583906
23716450
0251-316388
2887764/65
24074873
25645520-24
26894381
Med. Offr. Incharge, E. S. I. Dispensary, M. G. M. Hospital, 24132575
Parel, Mumbai- 400 012
Med. Offr. Incharge, E. S. I. Dispensary, ESI Hospital, Near 0251-2546733
Central Hospital, Camp No.3, Ulhasnagar.
Med. Offr. Incharge, E. S. I. Dispensary, ESI Hospital, 27821405
Vashi, Sector No. 5, Navi Mumbai – 400 703
Med. Offr. Incharge, E. S. I. Dispensary, S. V. Road, Behind 26126593
Nanavati Hospital, Sarojini Naidu Road, Vileparle (W), Mumbai.
Med. Offr. Incharge, E. S. I. Dispensary, ESI Hospital,
Wagle Estate, Thane – 400 607
Med. Offr. Incharge, E. S. I. Dispensary, ESI Hospital, Dr.
Anne Besant Road, Worli, Mumbai – 400 018
Med. Offr. Incharge, E. S. I. Dispensary, Canteen Building,
Ex. Sharad Kelkar Samuhik Suvidha Camp, MIDC, Rabale,
New Mumbai
Med. Offr. Incharge, E. S. I. Dispensary, ESI Hospital,
Akruli Road, Kandivali (E), Mumbai – 400 101
Medical Officer Incharge, ESI Dispensary, Bahel Building,
Ramdaspeth, Akola 444001
25823551
Akola - II
Medical Officer Incharge, ESI Dispensary, Shri Lalpande
Building, Bhagirath Wadi, Harihar Peth, Akola
2435742
19
Akola - III
2414574
20
Amravati
21
Aurangabad
No. I
Medical Officer Incharge, ESI Dispensary, Vinayak P.
Kutaskan House, Akola
Medical Officer Incharge, ESI Dispensary, Masjid Road,
Near Khaparse Garden, Amravati 444601
Medical Officer Incharge, ESI Dispensary, Osmanpura,
Mahaveer Nagar, Peer Bazar Road, Aurangabad 444601
24933142/3,
24932390/2428
27693765
28877501
2433729
0721-2673655
2331686
34
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
Aurangabad
No.I
Medical Officer Incharge, Esi Dispensary, Khadekeshwar,
Near Mule Pathology, Vyavhare Building, Aurangabad
431005
Aurangabad Medical Officer Incharge, ESI Dispensary,
Plot No. 10 N-11, Near Mayuri Hotel, HUDCO,
No. III
Asurangabad- 431 003
Aurangabad Medical Officer Incharge, ESI Dispensary,
No. IV
Chikalthana, Opp. MSRTC Workshop,
MIDC Chikalthana, Aurangabad 431 210
Bajeriya
Medical Officer Incharge, ESI Dispensary,
Bhankheda, B/H Ice Factory,Bajeriya, NAGPUR
Chandrapur Medical Officer Incharge, ESI Dispensary,
C/O Smt. Malinibai Building, Ramnagar, Civil Line,
Chandrapur
Hinganghat
Medical Officer Incharge, ESI Dispensary, H.No. 160,
Chandrachhaya, Yeshwant Nagar, Gandhi Ward,
Hinganghat 442301
Gandhi
Medical Officer Incharge, ESI Dispensary, C/O Smt C.C.
Nagar
Ghavghave's Building, Plot No. 354, Gandhi Nagar,
Nagpur
Ganeshpeth
Medical Officer Incharge, ESI Dispensary,
Near Vidarbha Co. Operative Marketing Society,
Ganeshpeth, Nagpur-440018
Industrial
Medical Officer Incharge, ESI Dispensary,
MIDC Common Services, Centre Building,
Area
Industrial Area, Hingana Road, Nagpur
Kukade
Medical Officer Incharge, ESI Dispensary,
Layout
Wanjari Nagar, Near Empress Mills Qtrs, Nagpur
Kamptee
Medical Officer Incharge, ESI Dispensary,
Kamptee Distt. Nagpur
Mahal
Medical Officer Incharge, ESI Dispensary,
Dakshnimurthi Chowk, Mahal, Nagpur
Nandawan
Medical Officer Incharge, ESI Dispensary,
Nandawan Layout, Nagpur
New Mount Medical Officer Incharge, ESI Dispensary,
Road,
Shri More's Building, Nagpur
New
Medical Officer Incharge, ESI Dispensary,
Subhedar
C/O Abdul Rahim Khan, Dattatraya Nagar, Nagpur
2321240
Nachangaon
Road,
Old
Bagadganj
Pachpaoli
07158-282042
2485820
2482444
2728411
07172-254403
07153-244071
2726197
07104-237396
2749197
288597
2724359
2746432
2746184
2746184
Layout
37
38
39
40
41
Medical Officer Incharge, ESI Dispensary, Khurana
Building, Nachangaon Road, Pulgaon Distt. Wardha
Medical Officer Incharge, ESI Dispensary, Kapase Chowk,
Bagadganj, Nagpur
Medical Officer Incharge, ESI Dispensary,
Near Kamal Talkies Chowk, Pachpaoli, Nagpur
Rambagh
Medical Officer Incharge, ESI Dispensary,
Near Medical College Square, Rambagh, Nagpur
Somwaripeth Medical Officer Incharge, ESI Dispensary,
Nurses Hostel, Somwaripeth, Nagpur
2764311
2640271
2744785
2744785
35
42
45
46
47
48
Somesh
Colony
Tarasingh
Market
Wadi
Nagpur
Ambad
Amalner
Bhosari
Barshi
49
Chalisgaon
50
Chinchwad
51
CIDCO
52
Dhule I
53
54
55
Gharpure
Ghat
Hadapsar
Ichalkaranji
56
57
Jalgaon
Jalgaon Ii
58
Kupwad
59
60
61
Miraj
Mpm
Solapur
Nagla Park
62
63
Nasik Road
Rajaram Puri
64
65
Sangli
Satara
66
67
Satpur
Samaj
Kalyan
Kendra
Tarabai Road
43
44
68
Medical Officer Incharge, ESI Dispensary, Laxmi Niwas
Channwar Building, Behind Kala Mandir, Nanded
Medical Officer Incharge, ESI Dispensary,
Tarasingh Market NO. 1, Smt. Awasti's Building,Nanded
Medical Officer Incharge, ESI Dispensary, Khadgaon Road,
Wadi, Nagpur
Medical Officer Incharge, ESI Dispensary, Ambad
Medical Officer Incharge, ESI Dispensary, Amalner
Medical Officer Incharge, ESI Dispensary, Bhosari
Medical Officer Incharge, ESI Dispensary, Bhagwant Road,
Near Ram Mandir, Barshi, DISTT. Solapur
Medical Officer Incharge, ESI Dispensary,
Laxmi Nagar, Chalisgaon
Medical Officer Incharge, ESI Dispensary,
Panchdeep Bhawan,Chinchwad,
Medical Officer Incharge, ESI Dispensary,
Saptashringi Chowk, CIDCO, Nasik
Medical Officer Incharge, ESI Dispensary,
Station Road, Near Post Office, Dhule
Medical Officer Incharge, ESI Dispensary, Near Bhagwan
Prasad Ashram, Gharpure Ghat,Nasik
Medical Officer Incharge,ESI Dispensary, Hadapsar, Pune
Medical Officer Incharge, ESI
Dispensary, Ichalkaranji Distt. Kolhapur
Medical Officer Incharge, ESI Dispensary, Jalgaon
Medical Officer Incharge, ESI Dispensary,
Old Mehrun Road, MIDC, Jalgaon
Medical Officer Incharge, ESI Dispensary, Kupwad
Sangli
Medical Officer Incharge, ESI Dispensary, Miraj
Medical Officer Incharge, ESI Dispensary, Solapur
242427
Medical Officer Incharge, ESI Dispensary, Nagla Park
Kolhapur
Medical Officer Incharge, ESI Dispensary, Nasik
Medical Officer Incharge, ESI Dispensary, Rajaram Puri,
Kolhapur
Medical Officer Incharge, ESI Dispensary, Sangli
Medical Officer Incharge, ESI Dispensary, Satara
0231-2653197
Medical Officer Incharge, ESI Dispensary, Satpur
Medical Officer Incharge, ESI Dispensary, Samaj Kalyan
Kendra, Solapur
0253-2363906
0217-2722435
Medical Officer Incharge, ESI Dispensary, Tarabai Road,
Kolhapur
0231-2622406
240308
07104-223283
0253-2383470
02587-223528
020-27121036
02589-222229
020-27470020
0253-2392601
02562-2211219
0253-2575960
020-26999178
0230-2437302
0257-2229283
0257-2211219
0233-2346728
0233-2222604
0217-2722899
0253-2463710
0231-269266
0233-2377636
02162-239533
36
ESI Hospitals in Maharashtra
Sr.
No
1.
2.
3.
4.
5.
6.
7.
8.
9.
Name of Hospital
Address
Andheri
Med. Supdt. E. S. I. Hospital, Central Road,
Near Marol Bus Depot, Andheri (E),
Mumbai – 400 093
Kandivali
Med. Supdt. E. S. I. Hospital, Arkuli Road,
Kandivali (E), Mumbai – 400 101
Mahatma Gandhi Med. Supdt. E. S. I. Hospital, Mahatma
Memorial Hospital Gandhi Memorial Hospital, Dr. S. S. Rao
Road, Parel, Mumbai – 400 012
Mulund
Med. Supdt. E. S. I. Hospital, Lal Bahadur
shashtri Marg, Mulund (W), Mum – 400080
Thane
Med. Supdt. E. S. I. Hospital, Wagle Estate,
Road No. 33, Thane – 400 604
Ulhasnagar
Med. Offr. Incharge, E. S. I. Dispensary, ESI
Hospital, Near Central Hospital, Camp No.3,
Ulhasnagar, Dist: Thane
Vashi
Med. Offr. Incharge, E. S. I. Dispensary, ESI
Hospital, Vashi, Sector No. 5,
Navi Mumbai – 400 703
Worli
Med. Offr. Incharge, E. S. I. Dispensary, ESI
Hospital, Dr. Anne Besant Road, Worli,
Mumbai – 400 018
Pune
(Aundh Medical Supdt ESI Hospital Aundh Camp
Camp)
Pune- 411 007.
10.
Nasik
11.
12.
Solapur
Chinchwad
(Pune)
13
Somwaripeth
Nagpur
14
Aurangabad
Medical Supdt, ESI Hospital, Trimbak Road,
Satpur, Nasik- 422 007
Medical Supdt, ESI Hospital, Solapur- 413 003
Medical Supdt, ESI Hospital cum ODC, Block
D-3,Survey S.No. 130, Plot No. 9,10,11 Mohan
Nagar, Chinchwad, Pune 411 019
Medical Supdt, ESI Hospital, Opp. Nurses
Hostel, Manewada Road, Somwaripeth,
Nagpur - 440009.
Medical Supdt, ESI Hospital, P-1, CIDCO,
Naregaon Road, Aurangabad - 431 003.
Phone No.
28203266(D),
28367206 (PBX)
/
2877501
(D),
28877764 (PBX)
24132575
(PBX)
24132581 /82 (PBX)
24130035 (D)
25645520-24 (PBX)
25600696 (D)
25823551
(D)
25323434 (PBX)
0251-2546733 (PBX)
2701222 (D)
/
27821405
(D)
27821432 (ADM)
/
/
/
/
/
/
24933142/364,
(D)
24932390/2428 (PBX)
02027280985/27282223
27283104
0253-2351945/2351045
0217-2601747/2600560
020-7462514
020-7462486
2744767
2480465
2480466
37
Super Specialty Hospitals tide-up in Mumbai
Sr.
No
1.
2.
3
4
5
6
7
8
9
10
11
12
13
14
15
Name of Hospital
Balaji Hospital
Zynova Heart Hospital
K. E. M. Hospital
Fortis Hospital
Joy Hospital
Suvarna Sethia Hospital
Suvarna Hospital
Kohinoor Hospital
Hiranandani Hospital
Life Line Hospital
Terna Sahyadri Hospital
Suraj Hospital
Sushrusha Heart Care
Thunga Hospital
Magnum Diganostic Centre
Location
Byculla
Ghatkopar
Parel
Mulund
Chembur
Chembur
Malad
Kurla
Vashi, Navi Mumbai
Panvel
Nerul Navi Mumbai
Sanpada, Navi Mumbai
Nerul, Navi Mumbai
Mira Road
Sion
There are more than 255 super speciality hospitals tide up all over India, complete list of which
can be seen at ESI Website:- www.esic.nic.in
To avail Super Speciality Treatment minimum conditions required:1) For IP :- 3 months Employment with Minimum 39 days Contribution payable.
2) For Family members:- 6 months Employment with Minimum 78 days Contribution payable
38
I II':- LI P ITOSJ> Jl ALS FO R
I:
r
I.
l\a m c ooof ll os pi hll
l
Ba laji llospitnl
1\ M u lti-Spec ialtl l ospital
Victoria Road. Cros-. L<llll! fll.
• 13ycu l l<tbst) Mumbai-400 027
Abasaheb
Uttamrao
Uedse
Cha ritabl e Trust·
Lifel i ne l l ospital & Resea rch
Cen t re. hi'nji Road. S. !'.Sta nd.
Pan vel. Di st. Ra i gad-4 I 0206.
.
L
li P F: RSPECI A I.I T\T''1(.1\\I A II A n ASII
Pla l.'l'
PnJc cdur
\1· umba i
C[uJinlug). Cardiu·\<t Lu l a1 &
Cardiot horacJc.
Dial) c,is.
1\eu rolog)
I
Panve1 -- + -.a rdiol og).
( anliot horm:i l'
u rger).
eu1 osurger)
Oncolog)
Paediall 1 , surge r) .
Onco surger)'. Gastro-lnterol og)Endoscop), Endocrinolog)
&
Endocrine
surger). lJurns &
Pl ast ic surgery, C I ·ca n. MRI.
Renal &. Th) roid sca n. Dial) sis
(AK D).
llrolog).
Joint
Rc l accmcnt & Trauma Cell.
('ardiolo
&
Cardiuthoraci ,;
M umbni
urgery.
t-;e UJ olog).
NeurosurgL'r)
·I
1novn l lcart l l ospit;l
; i mLH1i Arcade,
l\ear Sarvodaya ll ospi tal.
I .B.S.Marg. Ghatkopar (\Vest)
\t!um bai-400086.
MR I & C I .
e<H1 -Mumbai..J .
·la<!lllllll Diagnost ic Cen tre
17!{/2. C handreshwar lJhavan.
tv1n in Road, Sion ( Wc t)
\l u m bai-400022.
5.. l·ortil l ospitHI Ltd.,
MumChaa•idiology & Ca<dioth<>mcic
su rgc1 y. o11hnpd i c. Dialysis. CT
Mul u nd Goregaon Link Road,
Scan.
MRI. IVI mnmography
Mulu nd t W). 1umbai- 400 078.
Gl
Surg ry.
CarJilll og)
c'
.lo) Hospital Pvt. Ltd .
l\1umhai
6.
111
Card iot hotacic V a<;c ular Surger).
-lJ AIJ, I0 Road.
rollog)
& Urnsurgery. Rcconst.
Chembur. Mumbai 400 07 1 .
u rgery, Kidney Transplant &
Di al ysis a nd A ll joi nt n.:pl accmenl
l1
L
I
- -+---- --I su rge ries.
Cardiolog) & Cardiot horacic
urana
Sct hia H ospi tal
a nd M um bai
surger),
011hopaeJicJ c11 nt
Research Cent re. Chembur
Repl acement.
'\Jeurology
&
Suman Nagar. Sion r\)mbay Road.
Ncuro
surgcr.
Nephrolog)
'hembur. l'vlumbai-71.
surgcr)'. Stem Cell Repl acement
u rgeries. Dwlysi s, C I Scan.
7.
R..
I Sur.ma
Hospital
and
Research
M um bai
Cent re,
·1 an k Road,
LJ
next to Skywal k
Tower. 'lear orlem Church vlalad
(W) Mumbai-64 .
-
I
Cardiol ogy &
ardiot horacci
surgery.
Orthopaedic-J oint
Repl acement.
Ne u rol ogy
&
u rosurgery.
Nephmlog)
su rgl'ry.
I
I
I
-
39
40
Address of ESIC Regional Offices:1. The Director General,
ESI Corporation, C. I. G. Road, New Delhi – 110 002, Ph: 011 – 23234092.
2. The Regional Director,
ESI Corporation, Panchdeep Bhavan, N. M. Joshi Marg, Lower Parel, Mumbai – 400 013.
Ph: 022 –61209777 Fax: 022 – 24921701 (Fax)
Email : rd-maharshtra@esic.nic.in
3. The Jt. Director,
Regional Office – Marol,
ESI Corporation, Panchdeep Bhavan, Plot No. 9, Road no. 7, M.I.D.C, Andheri – (E),
Mumbai – 93. Ph: 022 28225568 / 69, Fax: 022 28303542. dir_marol@esic.nic.in,
4. The Regional Director,
ESI Corporation, ESI Hospital Wagle Estate, Thane – 400 607.
Ph:- 25806133 / 34, 25805222, Fax: 25806131. dir-thane@esic.nic.in,
5. The Regional Director
Sub Regional Office, ESI Corporation, Panchdeep Bhavan, 689/690 Bibwewadi,
Pune – 411 037; Tel:- OFF:- 020-24218710 Fax:-020-24215153 Dir:- 4218710;
Email:- dir-pune@esic.nic.in
6. The Regional Director
Sub Regional Office, ESI Corporation, Panchdeep Bhavan, Ganesh Peth, Nagpur- 440018
Tel:- 0712-2722987; 2729353; Email:- esicngp@nagpur.dot.net.in; dir-nagpur@esic.nic.in
7. The Regional Director
Sub Regional Office, ESI Corporation, Panchdeep Bhavan, Aurangabad,
Tel:- 0240-2483144(T/F), 024-2485949; Email:- sro-aurangabad@esic.nic.in
8. Director Public Grievances,
ESI Corporation Panchdeep Bhavan,
Kotla Road, New Delhi.
Fax:- 011 – 23235481
 For any complaint / Grievance/ Suggestion related to ESIC
ESI Corporation, Panchdeep Bhawan,
Room No. 108, C.I.G Marg, New Delhi – 110 002.
Phone Number:- 011 – 23237964; Fax:- 011 – 23234537
ESI TOLL FREE NUMBER:- 1800112526 FOR ANY DETAILS / INFORMATION ON ESI.
ESIC website: - www.esic.nic.in; www.esic.in
41
Frequently Asked Question on ESI Scheme
1) What is ESI Scheme?
A. It is a comprehensive Social Security Scheme designed to accomplish the task of socially protecting
the ‗employees‘ in the organized sector against the events of sickness, maternity, disablement and
death due to employment injury and to provide medical care to the insured employees and their
families.
2) How far and deep is ESIC‘s reach?
A. The ESI Act applies to factories employing 10 and more persons. The provisions of the Act are
being brought into force area – wise in the States. The ESI Act contains an enabling provision
under which the ―appropriate government‖ is empowered to extend the provisions of the Act to
other classes of establishments.
3) How does the scheme help the employees?
A. The scheme provides full medical care to the employee registered under the scheme during the
period of his incapacity for restoration of his health and working capacity. It provided financial
assistance to compensate the loss of his / her wages during the period of his abstention from work
due to sickness, maternity and employment injury. The scheme provides medical care to his / her
family members also.
4) How the scheme is funded?
A. The ESI Scheme is a self financing scheme. The ESI Funds are primarily built out of contribution
from employers and employees payable monthly at a fixed percentage of wages paid. The State
Government also contribute 1/8th share of the cost of Medical Benefit.
5) What is code number?
A. It is a 17 digit identification number allotted to factory / establishment by the Regional officer on
receipt of Form – 01 or survey report from the Social Security Officer.
6) Who are the persons to be counted for coverage of an establishment?
A. The words ‗premises‘ and ‗precincts‘ used in the definition of factory have not been used in the
notifications issued by the State Governments, while extending the provisions of the Act to the
establishments u/s. 1(5) of the Act. So long as the establishment employs a minimum prescribed
number of 20 coverable employees for wages, it will stand covered under the Act whether these
employees are employed at one place or at places away from each other, as they are engaged in
the organised activity of the same establishment. Thus, all the coverable employees including
those working in branches, regd. Office, sales office etc. Whether situated in implemented area or
not.
7) Can a factory or establishment once covered go out of coverage if the number of persons
employed therein goes down to the minimum limit prescribed?
A. Once a factory or an establishment is covered under the act, it continues to be covered
notwithstanding the fact that the number of persons / coverable employees employed therein at
any time falls below the required limit or the manufacturing process therein ceases to be carried
on (section 1 (6) of the act)
42
8) How wages are computed for payment of contribution?
A. The following items are taken into account for computation of wages for payment of contribution:a) Basic Pay , wages, salary;
b) D.A / HRA/CCA/overtime/officiating allowance/night shift allowance/ efficiency
allowance/heat, gas, dust allowance/education allowance/food & tea allowance / conveyance
allowance;
c) Wages / salary / pay for weekly off and public holidays;
d) Commission paid to sales staff;
e) Subsistence allowance paid to an employee during the period of suspension;
f) Attendance bonus or incentive or ex-gratia in lieu of attendance bonus or production incentive.
g) Regular honorarium or salary or remuneration paid to a director;
h) Collection bhatta paid to running staff.
i) Actual payments made toward leave salary, lay off compensation, or wages for strike period.
j) Any other remuneration paid or payable in cash to an employee if the terms of contract of
employment, expressed or implied were fulfilled.
9) If the wages of an employee exceeds Rs. 15000 in a month, can he be treated as not covered and
deduction of contribution from his wages is stopped?
A. If the wages of an employee (excluding remuneration for overtime work) exceeds the wage limit
prescribed by the Central Government after start of contribution period, he continues to be an
employee till the end of that contribution period and contribution is to be deducted and paid on
the total wages earned by him.
10) What is the effect of increase in wages from a retrospective date?
A. In case the wages of an employee is increased from a retrospective date resulting in crossing the
wage limit prescribed, its effect on coverage of that employee is only after expiry of the
Contribution period during the currency of which such increase is announced or declared. The
contribution on enhanced wages is also payable from the month in which such increase is
announced. There is no need to pay the contribution on the arrears for the period prior to the
month of declaration / announcement / agreement.
11) Why contribution should be paid on the total wages beyond the wage ceiling limit when an
employee crosses the wage limit prescribed by the Central Government?
A. An employee who crosses the prescribed ceiling limit in any month at any time after
commencement of the contribution period, continues to be an employee till the end of that
contribution period.
Through there is a wage ceiling limit for coverage of an employee, there is no ceiling limit in the
definition of wages for payment of contribution. Hence, contribution is payable on the total wages
without any ceiling limit.
12) Why over-time is to be excluded for wage ceiling limit for coverage of an employee?
A. Overtime is not a regular and continuous payment, but it is of an occasional nature, if overtime is
also taken for wage limit for coverage of an employee, he may be going out of coverage for some
time and again coming within the orbit of the scheme, when overtime is not there. This frequent
interruption from the scheme deprives him of the benefits admissible under the scheme even after
making payment of contribution for a part of contribution period. To ensure continued security
and protection, overtime is excluded for determining the wage ceiling for coverage of an
employee. However, it is included for payment of contribution to cover the risk during the period
he was on overtime work, and to enable him to draw cash benefits at an enhanced rate, as by
43
adding overtime wages to his average daily wages, he is fitted in to the next higher slab in the
Standard Benefit table in Rule 54 for claiming cash benefits.
13) How a temporary or casual employee who works for 3 or 4 days and leaves the employment is
entitled to the medical care?
A. If he leaves the employment before his registration process is completed, the employer may
provide him with a certificate of employment consisting of his date of employment, date of
leaving, family particulars etc. In form ESIC – 86. Based on this certificate that person and his
family can avail medical benefit for a period of 3 months.
14) If the insured person‘s family is residing in another place in the same state or another state,
how the family can avail the medical benefit?
A. If the family is residing in any other place either in the same state or different state, based on the
declaration of the insured person and certified by the employer, the family is provided with a
family identity card for receiving medical benefit from ESI Dispensary in the area in which it is
residing. After IT rollout, the Family is issued a separate smart card. By producing this smart card,
the family can avail the medical benefit from any ESI Dispensary / Hospital either at their place of
residence or in any other part of the country.
15) What is Extended Sickness Benefits?
A. This is an additional sickness benefit provided by the Corporation in exercise of its powers under
section 99 of the Act. An insured person who has completed two years of insurable employment
and contributed for not less than 156 days during this period is entitled to extended sickness
benefit for a period of 309 days for the 34 specified long term diseases. This period can be
extended up to 730 days or till the insured person attains the age of 60 years whichever is earlier.
The benefit is payable @ 140% of the standard benefit rate which works out to 70% of his wages.
The insured person and his family are also entitled to Medical Benefit during this extended period.
16) What is Enhanced Sickness Benefit?
A. To promote the norms of small family, this cash benefit is paid to the insured person for
undergoing vasectomy / tubectomy operation. This is paid at double the standard benefit rate i.e.
full wages, for a period of 7 days for vasectomy operation and for 14 days for tubectomy
operation. This period can be extended in case of any post operative complications.
17) What is Medical Bonus?
A. Medical Bonus is Lump sum payment made to an insured woman or an insured person in respect
of his wife for each confinement to meet the confinement expenses, if the confinement occurs at a
place where necessary facilities under the ESI Scheme are not available. At present the
confinement expenses paid is Rs. 5000/- per confinement w.e.f. 01/10/2013
18) What is benefit admissible after retirement of an employee?
A. An insured person who leaves the insurable employment on attainment of the age of
superannuation or retires under a voluntary retirement scheme or takes premature retirement,
after being an insured person for not less than 5 years, shall be eligible to receive medical benefit
for himself and his spouse subject to production of proof thereof, and payment of a nominal
contribution of rupees one hundred and twenty for one year. In case the insured person expires,
his spouse is entitled to the medical benefit for the remaining period for which the contribution
was made, and she can continue to receive the medical benefit on payment of the contribution @
120/-p.a. for further period.
44
19) Benefit for Permanent Disablement caused due to Employment Injury?
A. This Medical benefit is also admissible to an insured person who ceases to be in employment on
account of permanent disablement caused due to employment injury for himself and his spouse
on payment of similar contribution till the date on which he would have vacated the employment
on attaining the age of superannuation, had not sustained such permanent disablement.
20) Important Information for the Employers:a. Employer should get factory / establishment registered Online, immediately on applicability of
ESI Act to his unit.
b. Employer should get his employee including the employee employed through the contractors
registered online and T.I.C generated immediately after taking him in insurable employment.
c. The Employer should direct and pursue his employees to get photographed for Pehchan card.
d. The Employer should not re-register a new employee, if he / she was already registered with ESIC
while working with another employer.
e. The Employer should immediately inform the RO/SRO about the permanent closure or transfer of
factory / establishment within 21 days of such closure / transfer.
f. No claim needs to be submitted for PDB / DB payment.
g. PDB/DB claims to be settled within one month from date of termination of TDB and from date of
submission proper accident report.
21) Who are persons not to be counted for coverage of ESIC under a Factory?
A. Following are the persons are not to be counted: A proprietor or a partner whether drawing salary or not.
 A Contractor lending the services of his employee.
 An apprentice engaged for the first time under the Apprentice Act, 1961
 Persons employed on contract for service, e.g. legal technical, tax consultants;
 Persons employed in branch / sales offices etc. away from the factory premises are not be counted
for the purpose of covered as employee under Sec 2 (9), if their wages does not exceed the ceiling
limit prescribed.
22) Can an establishment get itself covered under the ESI Act voluntarily?
A. There is no provisions for voluntary coverage under ESI Act.
23) Are the casuals employees to be covered under the ESI Act?
A. Casual or temporary employees will be liable to be covered under the act from the date of their
joining the services.
24) What is the procedure for availing sickness benefit under the ESI act?
A. The employee is issued medical certificate from ESI dispensary / hospital. The medical certificate,
issued by the dispensary, is deposited with the local office of the ESI corporation from where the
employees gets the payment.
25) If an employee will cease to be the member of ESI in the month of May, 2012. Will Estb.
required to pay his contribution till October, 2012 or that it will discontinue? Also, what will be
the position with regard to medical benefit available to the employee?
A. Since the employee was coverable at the beginning of contribution period i.e. 1 st April and will
cease to be covered in the middle of contribution period, he will have to be covered till 30 th Sept
i.e. till the end of contribution period and he is entitled to all the medical benefits.
45
26) After serving an establishment for 10 years with the membership of ESI, if that employee will
retire at end of the year, then will he be get benefits under ESI Act?
A. If the employee is attaining the age of superannuation or under voluntary retirement scheme or
taking pre-mature retirement and in insurable employment for a minimum of 3 years then that
particular employee can avail the Medical Benefits by paying Rs. 120/- per year in advance to the
ESI Corporation, Medical benefits are available to the insured person and his/her spouse only.
27) What is procedure to availing sick leave?
A. For availing sick leave, the sick insured person has to visit the ESI dispensary/ hospital and obtain
medical certificate for the sickness which has to be produced in the branch office of ESI
Corporation to avail cash benefits for the period of sickness.
28) If any office is renovated through a contractor, is ESI contribution payable on that expenditure
& if yes then on what amount?
A. Yes ESIC is payable if office is covered under ESI Act, and since the contract awarded is with
material as such 25% of the amount will be considered as wage and on this amount of wage both
employer and employees share of contribution is required to be paid which at present is 6.5%
(4.75% + 1.75%)
29) Its is correct that now a member of the ESI can avail treatment in any dispensary all over India?
However, in case a dispensary is not available nearby, can such a member avail the treatment
from a private hospital/nursing home and will charges be reimbursed?
A. ESI Corporation is issuing smart cards, on the basis of which an insured person can avail medical
benefits in any ESI hospital/ dispensary. In case no ESI Hospital / dispensary is available, the
insured person can got to nearest Govt. Hospital / Dispensary. However, in emergency the
treatment can be obtained from nearest private clinic / hospital and charges can be reimbursed.
This facility is available only in emergencies only and the earliest opportunity thereafter, he/she
must report to ESI Hospital / dispensary or Govt. Hospital / dispensary.
30) How long an employer is required to maintain records under ESI Act?
A. As per latest amendments in the ESI Act (Section 45-A), ESI Corporation cannot determine
contribution beyond a period of five years from the date on which the contribution shall become
payable. It means you have to maintain the records for a period of five years from the date on
which the contribution was payable.
31) If loading and unloading done through outside labour contractors and if they don‘t have their
own PF & ESI Code Numbers. Then if principal employer, pays PF & ESI Contribution under
his code number. Apprehensions are that such employees can claim that they are the employee
of principal employer, how far it is justified?
A. Merely that a principal employer has deposited the provident fund contribution on its Code
Number for the workers of the contractor, it cannot entitled them for seeking their regularization.
In one case, the Madras High Court has clarified that the principal employer has discharged its
obligation in paying the provident fund contributions of the workers of the contractor, it cannot be
a ground for regularization of workers of the contractor since the principal employer can recover
the amount, as paid, from the contractor. Hindustan Petroleum Corporation was paying
contributions to the employees provident fund and that the employee were entitled to the
provident fund, cannot also help the workers in any manner. The liability to pay the employees
provident fund is mandatory irrespective‘ of the nature of the employment. Under section 2(f) of
the Employees‘ Provident Fund Act, 1952, which defines the expression ―employee‖, includes any
46
employee by or through a contractor in connection with the work of the establishment. Therefore,
the liability to pay the provident fund would arise even in respect of an employee under a
contractor. Under section 3A(sic), the amount of contribution paid or payable by the employer
may be recovered by the employer from the contractor either by deduction of any amount payable
under the contract or as a debt payable by the contractor. It is, thus, clear that the liability to pay
the provident fund is mainly on the principal employer and thereafter it is open to the employer
to recover from the contractor. Therefore, the fact that the employees are covered by the provident
fund scheme, is not relevant for deciding the status of the petitioners. It would be desirable that a
representation to taken from the contractor that for want of Code Number, his employees be
enrolled as member of Provident Fund and ESI and he will be responsible for deduction and
payment of contributions and that no relationship of employer and employee will come into
existence between his employees and the principal employer.
Petroleum Workers Union V. Hindustan Petroleum Corpn. Ltd. 2004 (2)LLN451(Mad;HC)
32) In order to make renovations, painters who are paid over Rs. 700/- per day , what will be the
position with regard to their coverage under the ESI Act?
Ans:- For Computing wages of daily-rated employees for the purpose of coverage under section
2(9) of the ESI Act, it has to be decided on the basis of notional wages arrived at by multiplying the
daily wage earned by employee with 26. If the total wage, so computed is Rs. 15,000/- or less, the
employee will be coverable.
33) If contractor carry on certain activities who also pays ESI contribution. but the same contractor
do not deposit ESI contributions for their workers although they receive the same from the
principal employer through their regular bill. How can we ensure that the contractor is
depositing the ESI contributions regularly?
Ans:- when you engage the contractor who is independently covered, ask him to give his code
number. Also obtain the attendance record and copy of the challan through which he has
deposited the contributions. Being a principal employer, you should have all the record and also
you can get monthly ESI contribution details by getting history of ESI Payment.
34) ESI Authority is claiming contributions for the contractors employees from us as a principal
employer. The said contractor has its own Code Number. My plea is that why should we be
liable when the ESI authority has allotted an independent code number to the contractor on
completion of all formalities?
Ans:- Being principal employer, it is your responsibility that both the employee‘s and employers.
Contributions is paid. Is such case where the contractors are engaged and the contracts is
independently covered having separate code number, ask the contractors to pay the contributions
under his code number and you should obtain a copy of the challan from the contractor along with
attendance register and salary sheet.
35) If employee‘s wife is expecting her delivery af ter about six months. Since he is a member of
ESI, whether she will be entitled to get maternity benefit. Is there any procedure for prior
permission from ESI for availing maternity benefit?
Ans:- That employee‘s wife is entitled for all the medical benefits including Pre-Natal, Delivery
and Post Natal benefits but not cash benefits.
47
ESI- PROBLEMS AND THEIR SOLUTIONS
Q. Ours is a printing press and not code number of employees working at Baddi
covered under the Factories Act. We are
employing total 12 employees. Is printing
press liable to be covered under the ESI
Act?
Thro Fax
A. Since you are employing more than 10
employees, your printing press is coverable under
the provisions of ESI Act.
factory.
Q. The
Management
of
our
establishment, employing over 15
employees is having a separate hospital
where the employees and their families are
getting free medical facility. Will it be
obligatory for the Management to cover the
Q. Some ofthe employees of our factory employees of the establishment? Thro Fax
are paid incentive and overtime and their
A. ESI Scheme is a mandatory scheme.
total emolumrnt comes to more than Merely providing medical facilities to your
Rs.lS,OOO. Are we under obligation to pay employees does mean that you are exempted
contribution on Rs.l8,000 or Rs.25,000 per from the coverage. ESI Scheme not only provides
month?
Thro Fax medical cover but also other benefits which you
A. You have to pay contribution on the salary are not providing. My advice is that you should
of the employee and also on the incentive and immediately cover your employees under the ESI
Scheme.
overtime paid to the employee.
Q. Since we are employing more than
Q. Our Company bas Head Office and
Marketing Office at Mumbai whereas the 1,000 employees, we are having an
factory is at Baddi (Himachal Pradesh). We ambulance through the contractor who is not
have one Code Number at Mumbai where covered under the ESI. Are the workers
the workers, around 50 working at Baddi working on the ambulance liable to be
K.L. Hinduja, Delhi
are also covered under the same Code covered under ESI?
Number. The Authorities in Himachal
A. Yes, the workers working on the
Pradesh are insisting that we are under legal ambulance are liable to be covered if the
obligation to take separate Code Number ambulance is attached with your company.
for factory at Baddi. What is the legal However, in case the ambulance is called only
position?
E-Mail when required but remains with the contractor in
A. My advice is that you should take a such event the workers working on the
separate code number for the factory at Baddi ambulance are not to be covered.
(HP). However, you can cover your workers
Q. What is meant by sub-code number
from Bombay Office also, but you have to send under the ESI Act?
Thro Fax
a copy of RC (return of contri bution) to the , · A. When you are having more than one
branch office of ESIC at Baddi and also keep a places of business at different places in the same
copy of your office in Badd i. You are also state or in different states, a code number is
supposed to keep the wage record, attendance allotted to each such unit and it is known as subrecord etc. at Baddi. It is better to have a separate code number.
48
Q. We have some persons working in
our establishment who are provided
boarding and lodging. What will be the
position with regard to their coverage? If
the answer is affirmative, what will be the
quantum of their wages?
L.K. Dua, Gurgaon
A. The workers who are provided boarding
and lodging are coverable under the Scheme.
Quantum of wage will depend on the salary paid
by you plus the cost of boarding and lodging
depending on the quality of boarding and lodging.
the services of the employee who has
received sufficient compensation from ESI
Authorities?
Thro Fax
A(a) You are bound to honour the certified
medical leave by ESI doctors.
(b) ESI doctors will either recommend leave
on medical grounds or declare a worker fit to
resume duty. ESI doctor cannot recommend light
or heavy work. It is for you to provide light work
or not. In case worker has produced any
document wherein light work has been
recommend by ESI hospital/dispensary doctor,
you refer the matter to higher authorities ofESIC.
Q. Sometime back an accident has
Q. We also pay some amount for good
occurred in our factory which could not be
work. Will such intermittent payment attract
reported in time to the ESI Authorities. My
ESI contribution? Hari Kishan, Vadodara
query is as to what consequences will follow
A. Yes, the good work amount paid to
since we have intimated after two weeks
workers will attract ESI contributions unless the
because all of us were disturbed.
amount paid interval is more than two months.
R.A., Faridabad
Q. In our establishment, we have to get
A. If you have reported, it is alright. You
the computers repaired and some parts
can explain the delay, if required by the ESI
thereof are to be replaced. The payment is
Authorities, but in future please report such
made by the Company. What is the legal
instances to the FSIC Authorities as it involves
position for such payment, whether it will
the benefits reqUired to be paid to the workers.
be treated as wages? M.S. Murthy,Chennai
Q.(a) Our factory is covered under ESI.
A. You have not made it clear, as to whether
Some employees, who remain away on
the computers are repaired by your own staff/
medical ground, produce .ESI slip. How far
mechanic or the repair and maintenance is under
we are bound by ESI Act to grant them
service contract with outside agency. In case
leave?
you are having service contract with outside
(b) One of our employees has met with agency, you are not required to pay any
an accident and after recovery, he has been contribution on the amount paid to the agency.
advised to do lighter work but we do not Even if the computers are repaired by your staff/
have any lighter work. What should be done mechanics, no contribution is payable on the cost
under such situation? Can we dispense with of parts replaced.
49
Q. Our factory is employing over 150
employees but ESI Act is not applicable
since it is in the non-notified area. Our office
at Delhi is employing 7 employees. ESI
Authorities are insisting that we should
cover the Delhi office. What is the legal
position? Are we liable to cover the Delhi
Office when the factory is not covered?
Hari Om, Kanpur
A. In case your factory is situated in a nonimplemented area and your office in notified area
is employing less than 10 employees, your office/
staff is not coverable under the Scheme
reimburse the conveyance expenses as
incurred by an employee. What will be the
position with regard to such payment?
Sudesh Mukherjee, Kolkata
A. No contribution is payable on the reimbursement of conveyance charges to the
employees.
Q. Our establishment is covered by ESI
Act. We are dealing in new tyres. As and
when any consignments comes, the loaden
and unloaders who are sitting in the market
and working for others as freelancers also
are called and paid for their work. Whether
such payment would attract ESI
contributions?
Ashutosh Rana, Rewari
Q, We are depositing ESI contribution
on service charges as levied in our invoices
for the eatables as ordered and bought from
A. In case such persons are engaged on
our restaurants. We have been advised that
the service charges do not attract the ESI daily wages, the contribution is payable. But, in
case they are casually employed for a short
contributions. Am I right?
Atul Kulkarni, Kanpur period, no contribution is payable on the labour
charged paid to them.
A. Yes. No contribution is payable on
Q. We have given the contract for
service charges.
maintenance of our computer to an individual
Q. Due to unavoidable circumstances, who is paid Rs. 7500 per month. He is not
we have not been able to deposit in time our employee and under no obligation to
the ESI contributions. We have been mark his attendance. He will come for work
threatened with levy of damages for late but only occasionally as and when he is
deposit. Whom should we approach for called. Whether such a vendor would attract
reduction and/or waiver of the damages? ESI contributions.
Thro. E-Mail
Thro. Fax
....
A. Such persons are part time workers and
A. You have to pay the interest and damages coverable. But in case he is having a shop or
for the late deposit of contribution. Damages establishment and visits as and when required
can neither be waived nor reduced.
and paid according then no contribution is payable.
Q. I understand that the conveyance But in the instant case, a fixed amount is paid
allowance and charges attract ESI whether he is called or not hence, he is coverable
contributions. In most of the case we simply under the Scheme.
50
As far as availingof sick leave in concerned,
after his superannuation, can avail ESI the employees has to go to the ESI dispensary,
benefits by depositing a small amount. My where he will be examined by the doctor and if
query is that now I am 55years but no longer found sick, the leave will be granted to him.
interested to work for another five years
Q. We provide vehicle for travelling of
which is the retirement age, can I avail our employees. Unfortunately an accident
benefits of ESI?
Lahori Ram, Farida ad bas occurred. The employees can claim
A. As per provision under the rules otle can compensation for injuries under the Motor
avail medical benefits after the age of Vehicle Act and ESI Act. My queries are as
superannuation only. So, as per rules you will under:not be eligible for medical benefits.
(a) Are we liable to pay compensation
Q. We have made a settlement with the in the capacity of employer?
(b) Will it not be the liability of ESI to
union whereby arrears are paid to the
workers who are also covered under the make payment of compensation?
(c) Whether the employees can claim
ESI. What will be the position of payment
compensation from ESI and also under
of contributions on arrears of wages?
Thr. Fax
Thr. E-Mail Motor Vehicle Act?
A.(a)&(b) If he is covered under ESI
A. No contribution is payable on thearrears.
Scheme, he will be paid by ESI authorities
Q. We have been paying medical provided the accident occurs while travelling from
allowance and giving sickness leave to the residence to factor and vice-versa. You need
workers. Now ESI is being made not pay any compensation.
applicable. I understand that we will be
(c) The employees can't claim compensation
within our rights to withdraw medical
allowance and the sick leave to the both from ESIC and under Motor Vehicles Act.
employee.
Q. Our establishment is covered under
a) Are we within our rights?
ESI. Fortunately no accident has occurred
b) What will be the procedure to avail for last 20 years. We are apprehensive that
sick leave by the employees and upto what in case it happens what formalities are to be
observed to intimate the ESI authorities also
extent (quantum)?
S.K. Bhardwaj, Gurgaon to whom and within how much period?
Mukesh Bhai, Vadodara
A. If the medical allowance is paid under
A. You have to intimate toDivisional Office/
any contract with the union, you can't withdraw,
otherwise you can withdraw. Sick leave can be Local Office. Rest of the information in detail
withdrawn in respect of those employees who may be gathered from Local Office/Divisional
Office/Regional Office.
are coverable under ESI Scheme.
Q. I understand that an employee, even
51
Q. What is the percentage of wages criteria for clubbing more than one
when an employee is availing sick-leave as
recommended by the ESI Authorities?
ThroE-Mail
A. During sick leave it is 70% of the
standard benefit rate of that particular person.
Q. I belong to Patna and working in
Gurgaon (Haryana). I am covered under the
ESI Act and so is my wife. My wife is
expecting a baby but she is in Patna;.. My
query is whether she can avail maternity
benefits at Patna? Ram Kumar Yadav,Gurgaon
A. If your wife is also covered as a worker
in ESI Scheme, she will be entitled to cash benefits
also otherwise cash benefits are not allowed.
However, she can avail all medical benefits. If
the delivery takes place at any private clinic or
through Dai etc. you will be entitled to claim
Rs!'JOI- as confmement expenses.
Q. I, being a member of ESI Scheme,
understand that my dependents are entitled
to the sickness/medical benefits. If so, upto
what age? What will be the position for
availing medical benefits when they are
independent and earning their own
livelihood?
Ganga Ram, Noida
A. Your children are entitled to medical
benefits, not sickness benefit, upto the age of2J}
years. But once the child starts earning, he/she
·is no more dependent and will not be eligible for
medical benefits.
.!
Q. In our premises I am manufacturing
auto parts employing 7 employees. My son
has also started his business to manufacture
amplifiers. He is employing 6 employees.
Whether the ESI will be applicable? I am
also anxious to know as to what are the
establishment under the ESI Act?
R.K. Suri, Mumbai
A. If both businesses i.e. run by you and
your son have absolute separate entities, in such
event both the units are not coverable as the
number of employees are 7 and 6 respectively.
In case both the units are clubbed, it will be
coverable as the number of employees will be
more than 9 (10 or more employees coverable).
Asfar as criteria for coverage is concerr.c,.ere
are seven criterias :a) Unity of ownership (i.e. Management &
Control)
b) Unity of Labour (i.e. transferability of
employees)
c) Geographical proximity (vicinity, bonafides in
keeping units apart)
d) Source of fmance
e) Supervision & control (persons managing)
t) Functional integrity(integrated whole, part &
parcel of main unit, kprimary & dominant
a tivity,subsidiary, minor,incidental)
g) Unity of purpose (production and business,
inter-related business, similarity ofbusinessdesign or even parallel or co-ordinate activity
intended to achieve a common object)
There are two other criterias which can also
assume importance i.e.
(i) Service conditions of workmen (Rules
applicable, employment contract if any etc.)
(li) General (Books of account, similarity of
nomenclature, common documents, letter
heads, telephone numbers etc.)
All the factors are not necessarily to be
considered. Relevance of each factor has to be
examined.
52
Recent Court Judgement:1) Section 45 – A – (Order of attachment of property of Director of company for ESI contribution
due by company was held without jurisdiction)
The petitioner was formerly a Director of the company known as Kiran Fashions Pvt Ltd. Of
which her husband was yet another Director. There was one more company known as Kiran
creations Pvt Ltd. Of which the petitioner‘s husband was one of the Directors. The respondent
passed an order under Sec. 45 – a of the ESI Act against both the companies for payment of certain
amounts towards ESI Contributions. The said orders became final since they were not challenged
by the respective companies. Subsequently recovery certificates were also issued in order to
recover the said amount. Pursuant to the recovery certificate, the second respondent passed the
impugned order of attachment of the property of the petitioner. Feeling aggrieved thereby the
petitioner challenged the same by filing a writ petition in the High Court.
The Only question before the High Court was whether for recovery of dues from the company, the
property of Directors, both past and present, could be attached? The High Court observed that if
the contributions have not been paid the same can be recovered from the assets of the company
and not from the personal assets of the Directors by making them personally liable. Directors
cannot be treated ipso facto as owners. It was therefore held that the impugned order was without
jurisdiction. Hence it was quashed and set aside.
-H.C. Mad, LLJ III 2011 P. 647, Rani K. Lulla v. Employees‘ State Insurance Corpn., Chennai.
2) Section 52-A- Schedule III Part – C, SL.No.3 – (When the death of the employee was due to
tuberculosis of lungs, it was held to be occupational diseases, the dependents are entitled to get
the dependency benefit under the ESIC Act, 1948.)
The deceased was working in Subhlaxmi Mills and he died on 17-08-1991 due to chest disease in a
hospital. The appellants are the legal heirs of the deceased and they filed an application in the ESI
court for getting the dependency benefits. But it was dismissed by the ESI court. Hence they filed
an appeal in the High Court. It was contended on behalf of the appellants that it was proved
beyond reasonable doubt before the ESI court that tuberculosis was sustained by the deceased
workman as the cotton and dust went into the lungs of the deceased while filling up bobbins
during the course of employment in Subhlaxmi Mills. It was further pointed out that the room in
which the deceased workman was working did not have a window but only a door and in view of
the unhygienic working conditions prevailed at that place of employment, the deceased workman
became a patient of tuberculosis.
The High Court referred to the evidence of the doctor who deposed that if a person working in a
room where dust and cotton are spread, there are chances of tuberculosis of lings being suffered
by the person and due to infection of the same cardiac failure can also occur, it appears that the
doctor further stated that the deceased workman was suffering from lung tuberculosis but the
disease shown in the Schedule III Part – C Sl. No. 3 was different. The High Court referred to the
said scheduled which reads:-
53
Sr. No. 3. Bronchopulmonary diseases caused by cotton, flax hemp and sisal (Byssinosis)
All working involving exposure to the risk concerned.
The High Court held that the injury caused to the deceased workman would fall at Sr.No.3 of Part
–C of III schedule of the act and merely because the doctor said that the said provision was not
applicable in the present case, it cannot be said that it was not applicable. The High Court held
that there was miscarriage of justice. Consequently the High Court allowed the appeal and set
aside the order of ESI court. It was held that the appellants were entitled to get compensation as
per the provisions of the ESI Act with the interest at the rate of 9% from the date of the application
till realization.
H.C.Guj. CLR 2011 P. 845, Radhaben Gopalbhai & Ors. V. ESIC.
Discussion on the issue of ―Authorized Representative‖ specially appearing before the E.S.I.C
Authorities and Provident Fund Authorities.
(By: S. K. Gupta, Advocate, Supreme Court)
Either Assistant Director or Dy. Director or Regional Director, who have been conducting inquiry
against the establishments or employers under sec. 45 – A of the Employees‘ State Insurance Act,
1948 for determination of amount of contribution payable in respect of the employees of that
factory or establishment. The same way, the Assistant Provident Fund Commissioner or Regional
Provident Fund Commissioner, who have been doing inquiry against the establishments or
employers under sec. 7A of the Employees‘ Provident Fund and Misc. Provisions Act, 1952. There
is no dispute at any stage that the proceedings which are conducted by them are called ―quasijudicial proceedings‖ and the authorities, who have been conducting the proceedings, are called
―quasi-judicial authorities‖ and therefore, these authorizes had to follow principles of natural
justice.
When the establishment / employer received summon or so called notice from the ESIC or the
EPFO, then most of the time, the language written by the ESIC or EPFO in the notice or summon
that ―you are hereby summoned to appear before me either in person or through an authorized
representative on
the
day
at
AM/PM‖.
Not only in the ESIC or the EPFO, in the Income Tax authorities or Sales Tax authorities or any
other quasi – judicial authorities, the many authorized representative, who are not advocate, have
been appearing before the quasi – judicial authorities during quasi – judicial proceedings.
So, dictionary meaning of ―Authorized Representative‖ means a person, who represent any other
person, on payment of any fee or remuneration before any tribunal or authority constituted or
appointed by or under any law for time being in force.
Since, the Employees‘ Provident Fund and Misc, Act, 1952 or the Employees‘ State Insurance Act,
1948 have no such provision like Industrial Dispute Act, 1947 i.e. section 36 Representation of
parties were discussed recently by the Bombay High Court in the matter of Maharashtra
Employees‘ Union Vs. M.K. Metal Industrial and others 2010 LLR 936 in reference of the Industrial
Dispute Act, 1947.
If any Assistant Provident Fund Commissioner or Regional Provident Fund Commissioner or
Assistant Director or Dy. Director or Regional Director refuses to record the appearance of any
authorised representative during 7A proceedings or 45A proceedings or any recovery proceedings
it shall be treated violation of principles of natural justices.
To my mind, I suggest that the learned consultants should file the ―authority letter or powers of
attorney‖ before the quasi – judicial authorities and once, the quasi judicial authority takes the so54
called ―authority letter‖ on record or in the proceedings, then subsequently, the authority cannot
dis-allow to appear in the proceedings and if at any stage, it occurs, then it is violation of
principles of natural justice.
There is no law or provisions under the Act, 1952 or Act 1948, that being a PF Consultants or
Labour Laws Consultants or ESIC Consultants, are not entitled to be represented in the
proceedings as ―authorised representative‖. In brief, no bar, for the sake of convenience, proposed
draft of the authority letter is as under:-
55
NAME OF THE AUTHORITY AND THEIR DESIGNATION AND ADDRESS
PF Code No:
(Name of the Establishment and Address)
ESIC Code No:
(Name of the Establishment and Address)
AUTHORITY LETTER
I,
S/o.
working in the establishment as
do
hereby appoint Mr. (Name of Authorised Person) to my/our authorised representative in the
above noted quasi – judicial proceedings whose signature and acceptance thereof are given here
under. I/ we hereby authorised him/them as under:-
1) To act, appear and plead
2) To sign, file and verify the day to day proceedings.
3) To file and take back documents
4) To admit and/or deny the documents of the opposite party.
5) To cross examine the Enforcement Officer.
6) To ask the Enquiry Report or any other documents during proceedings or thereafter.
In witness whereof; I
been understood by me on
do hereby set my hand to above contents of which have
the day of
.
Accepted subject to the terms of fees.
Name of Authorised Representative.
Address of Office:Date:
/ /20
Place:-
Signature of Employer (Seal)
56
OptionalInspections:·
3. In following cases, the inspections would be
generated through computer usingpre-decided number
tables taking intoaccount the followingfactors:-
Inspection Scheme for
Employees' State
Insurance Corporation
Objective:TheInspection Scheme aims toachieve
the objective of simplfiyingbusinessregulations andbring
in transparency and accountability inlabour inspections. tt
enVisages objectie criteria for selection of units for
Inspection.
Criteria of Inspections
Mllldatorv Inspections:·
1. In the following ·cases, the inspections will be
mandatory for all units:-
i) Allnew covered/registered units
u) Units whichhave been defaulters for six months
iu) Units for which closure request has beer.
received
iv) Units whereno inspection was carried out in las1
3 years {as ESIC has time bar of 5 years for claiming
dues)
1) Dropincootributionby30%and above compared to
previous contribution period (over a period of six
months)[30%]
2) Drop in number of covered employees by 30%
andabovecomparedtopreviouscontributionperiod {CNer
a period of six months)[30%)
3) Security/manpower agencies E!l11lloyingmore than
250 employees[30%)
4) Any other not fallingin above categories[10%) .
4Methodology:
1. Employers to feed master data and periodical
returns.
2.1nspectors to feed detailedinspectionreport.
3.1nspectors to feed accident returns.
4. Computer programme tobeprovidedby NIC taking
into account the criteria.
5. Computerized generationof inspectionprogramma
and communication to theinspectingstaff keepingin view
theconfidentiality aspects.
5Generaf Instructions:
1.Theinspecting officer has tomaintain registers of
theestablishments.
2.Hehas to recordthe statement of workers present
2. ESIC would set up a Central Analysis and
IntelligenceUnit (CAIU) for collectingand analysing field at the time of inspection.
level data for a transparent and accountable labour
3. In case of contradiction in the statements of
inspectionsystem.The cases forwardedthroughCentral errpoyer's, worker andentriesintherecord,theinspecting
Analysis & Intelligence Unit (CAIU) of ESICwillbebased
on data and evidence.ESIC will formulate an objective officer will seize the relevant records.
methodology for selectioo criteriaof the cases by theCAIU
4.Inspection report should always be prepared on
keeping in view its priorities and the provisions of ILO Cthe work-spot by the inspecting officer himself and
81.
handover to the employer's representative.
5.The inspection should be carried out during the
normal working hours.
6.Theinspection report isbeing simplifiedandunder
review/revision.
7.The inspectionreport shouldbeuploaded within3
days by the inspector.
8.Incase of violations by theInspecting staff,entries
are recordedin APAR.
(Ajay Malik)
Under Secretary to the Govt of India
NewDelhi,Dated the 21st June, 2014
57
58
59
60
61
62
Notifications issued by different State / UT Governments Under
Section 1(5) of ESI Act, 1948 reducing threshold of coverage to
10 persons in their respective States / UTs.
CONTENTS
Sr. No.
Name of State
Govt. / UT
1
2
Andhra Pradesh
3
4
Bihar
Tripura
Chhattisgarh
5
Gujarat
6
7
8
Haryana
Jammu & Kashmir
9
10
11
Karnataka
Kerala
12
13
14
15
16
17
18
Jharkhand
New Delhi
Orissa
Pondicherry
Punjab
Rajasthan
Uttrakhand
West Bengal
Chhattisgarh
Gazette Notification No. & Date
178, Part-1, Extraordinary dated 21/04/2011
No.F.21 (71) – LAB / ENF / ESI / 08 / 5740-43
dated 20/07/2011
No. ACS-01 / Ni-73 / 2010-65 dated 19/01/2011
No.12, F-10-28/2010/16 dated 4/3/2011*
Vol. LIII, Extraordinary No. GHR – 2012-04-ESI
-18-2011688529-M(3) dated 3/1/2012
20
Goa
21
Tamilnadu
22
ASSAM,H.P.,U.P.,
& Maharashtra.
Except Medical
Institutions
Except Medical
& Educational
Institutions.
No. 10 / 162 / 2010. 5lab dated 6/9/2011
SRO 80 dated 5/3/2012
133 Extraordinary No. 1653 dated
11/2/2011
No. LD 323 LSI 2010 dated 16/3/2011
Vol. LVI SRO No.425/2011 dated 28/6/2011
501, Extraordinary Part-II – Section-3-subsection (ii) S.O.616 (E) dated 23/3/2011
No. SS-II-SC-42/2011/7752/LE dated
24/8/2011
25 No. 7237 / Lab / K / 2010 dated 2/6/2011
Except Medical
institutions.
Extraordinary No. 8/50/10-4HB4 / 2192 dated
14/7/2011.
Extraordinary, S.O. 546 dated 7/1/2011
Part-12, No.31, 641. VII /11-479 (ESI)/2003
dated 7/6/2011
Extraordinary, 10/2/2011, No.131-SS/2H-6/05
dated 1/2/2011.
F 10-4/2011 / 16 dated 25/5/2011
19
Madhya Pradesh
Remarks
F No. 9-1-2004 – B-XVI dated 19/5/2011
No.
Dated 5.09.2012
No.II(2)/LE/52/2013 Dated: 2nd January, 2013
Medical
Institutions
Educational &
Medical
Institutions
Expect education
and Medical
institutions
Expect education
and Medical
institutions
Awaited.
63
64
65
• f)ICisissuingowh-techcards.Onefor theimuredpersonaooanotherforhisfamilymembel).
• In future, your l'lole family can avail f)ICs completemedicalfacilities any.vhere, an ime1\ th
f)IC PehchanCard.
fr+J ot 02Q30
• In theabove camp, your and your lamii)1S oiometric details \ Z. finger Print,Photograph etc. wil
be ta en in order to ensure biometric se<urity. )o ensure, no one from your family is lelt out,
evebody comes to thecamp.
rre SlllliiK III
Advantage E ICs New Pehchan Card
0 G 8 1)41·1911
. . 115, Gali No.9
Pe.,..
>IWe!\Pie hlglr
lltM ()eih1·1100CI
• The facilicy to avail treatment in any of the fSIDispensaries I Hospitals across the count
• Pehchan Card valid for life, as per rules • No need of getting Pehchan Card again
on change of employment or change of place of wor ing • More convenience for
Insured Persons • Hassle free amendment in your and your family members description
• In future, Insured Person's Medical Histoto be available online, with evefSIC institution
t faIdentfiication of lnsJredperson and familymembers
For further details, please contact
your employer or the nearest ESIC off ice
(lijij Gfmr
tmployeestlate Insurance Corporation
-
PaocWeeBhawan,C I. G.
Wet:·.w 1 i .ri:
g,Ne'll Deti·l' lOOI
m
66
67
PAYMENT OF WAGES ACT, 1936
The payment of wages act, 1936, is one of the old enactments dealing with employer-employee
relationship. But as the name of the Act indicates, it deals with a very limited aspect of that
relationship inasmuch as it regulates only the payment of wages to certain persons employed in
industry. The limited purpose of the Act is to ensure prompt and full payment of wages to persons
employed in industry.
Objective:The main objective of the Act is to avoid unnecessary delay in the payment of wages and to
prevent unauthorised deduction from the wages.
To regulates the payment of wages to certain classes of employed persons.
Applicability:1. Every person employed in any factory, upon any railway or through sub-contractor in a railway
and a person employed in an industrial or other establishment whose wages are upto Rs. 18,000/per month are covered or protected by the Act w.e.f. 08/08/2007
2. The State Government may by notification extend the provisions to any class of person employed
in any establishments or class of establishments.
Deductions:The Total deductions in any wage period shall not exceed 75% of wages in case of deductions
made to payment to co-operative societies and in all other cases 50 %.
1)
2)
3)
4)
5)
6)
7)
8)
Permissible Deductions:The Employer should not make any deduction from wages other than the following:Deductions from absence from duty.
Fines in respect of an act or omissions which has been approved by the Government and notified
at the factory or establishment. No fine should be imposed on an employee, unless he has been
given an opportunity of showing cause against the fine.
Deductions for damage or loss of goods or money, expressly entrusted to the employee‘s custody,
not exceeding the amount of actual damage or loss caused due to his neglect or default.
Deduction for house accommodation and other amenities or services as notified by the
Government, provided by the employer. The housing accommodation, amenity or service should
have been accepted by the employee as a term of employment or otherwise. The amount of
deduction should not exceed the value of the accommodation, amenity or service provided.
Deduction for recovery of advances and interest thereon shall be made in accordance with section
12 and the rules made by the state govt.
Deduction for recovery of loans made from any labour welfare fund, and housing loans, along
with interest thereon, shall be made in accordance with section 12A and the rules made by the
State Govt.
Deduction for income-tax payable by the employee
Deduction required to be made by order of a court or other competent from provident fund
68
9) Deduction for payment to co-operative societies approved by the Government, or an insurance
scheme of post office
10) Deductions can be made, with the written authorisation of the employee, for payment of any life
insurance premium, purchase of the government securities, etc.
11) Deductions with return authorisation to Prime Ministers National Relief Fund or such other
Notified Funds.
Limit of Deductions:The total amount of permissible deductions in any wage period should not exceed:a) In case where deductions are wholly or partly made for payment to co-operatives societies, 75%
of wages and
b) In any other case, 50 % of wages.
Claims for nonpayment of wages shall be filed before the Chief Judicial Magistrate (CJM):1) By employee himself in Form – A
2) On behalf of employee by any other person – in Form – B
3) By group of employees – in Form – C.
The claim should be field in duplicate within 12 months from due date before CJM (claim
authority). Penalties are provided in the act for violation. Appeal can be made against the orders
of CJM to the court of small causes and district courts.
Eligibility:The wages must be paid on a working day and not on a holiday.
In an employment which employs less
than 1000 persons
In any other case
In
case
of
employment
termination
Before expiry of seventh day.
Before the expiry of tenth day after the last day of
the wages period.
of Before the expiry of the second working day, after
the day of his termination.
Methods of Payment of Wages:Wages must be paid in current coin or currency notes or in both and not in kind. It is however,
permissible for an employer to pay wages by cheque or by crediting them in the bank account if so
authorised in writing by an employed person.
Benefits: - The Act prescribes for;
1. The regular and timely payment of wages (on or before 7th day or 10th day after last day of the
wage period in respect of which the wages are payable)
2. Preventing unauthorised deductions being made from wages and arbitrary fines.
69
Overtime Wages not to be taken into account:Wages means contractual wages and not overtime wages. They are not to be taken into account for
deciding the applicability of the act in the context of Sec.1(6) of the Act.
3)
4)
Recovery of Advances:An advance of wages shall not exceed four months wages
The advance may be recovered in installments by deductions from wages spread over not more
than 18 months
No installment shall exceed one-third of the wages for the month
The rate of interest charged for advances shall not exceed 6 ¼% per annum.
1)
2)
3)
4)
Registers to be maintained:Register of wage - Rule 5
Register of fine in Form 1 (Rule 3)
Display of notice of dates of payment not less than 2 months in advance
A Register of advances and recoveries in Form III (Rule 19)
1)
2)
Recent Court Judgment:1) Annual Increment:For some employees there are grades and scales of pay in the establishment and those who are in
supervisory cadre get consolidated salary. The employer ordinarily gives annual increment to the
workers in their scale of pay. But some year they go not get increment. The supervisors do not get
increment most of the times.
Are not all the employees entitled to annual increment regularly?
Where there is grade and scale of pay normally the increment will have to be given regularly.
There are various steps in the scale of pay and in each step the amount mentioned will have to be
given as annual increment by the employer. Annual increment means the increase in the wage
every year for the efficient way of performing work and recognition towards experience.
Whatever is the grade and scale of pay, the employer cannot deny the annual increment and it has
to be regularly given. The increment is protential wage increase. It cannot be withheld. But the
employee is appointed on a consolidated salary and the employee is no fitted in any scale of pay,
the employee cannot claim annual increment by way of his privilege or right. When the salary is
consolidated it is the discretion of the employer to give further raise or not. Depending upon the
efficiency and usefulness of the employee in the performance of work, ordinarily the employer
does not deny increment in salary unless the organisation has become economically weak.
2003 – IILN – 93 – RD Rajendran V/s. KTM abdul Khadar & Ors.
70
Non Payment of wages:1) Due to tough and aggressive competition, if a company / Establishment is not in position to pay
wages to workers. Can the Establishment withhold the wages of employees / workers?
A. No. The Supreme Court has held that a right to carry on business is subject to compliance of
constitutional obligations and, as such, financial stringencies may not be a ground for non –
payment of wages to the employees.
Summary:The main purpose of the Payment of Wages Act is to ensure regular and prompt payment of
wages and prevent exploitation of the wage earner by prohibiting unauthorised deductions from
wages. Persons drawing less than Rs. 18,000/- per month, in respect of a wage period, are covered
under the Act. The act applies to factories, railways, the construction industry, civil air transport
services, motor transport services, mines, plantations, oilfields, docks, and wharfs or jetties. The
act stipulates that wages must be paid within seven days from the date of expiry of the wage
period in establishments employing less than one thousand persons and within ten days in
establishments employing more than one thousands persons. The act lays down a list of
authorised or permissible deductions and specified conditions for their imposition. It has laid
down machinery for enforcement of different provisions of the act and also penalties for
contravention of its provisions.
71
FORM IV
Abstract of the Payment of Wages Act, 1936,
and the Rules made there under
Whom the Act affects:
1.
2.
3.
The Act applies to the payment of wages to persons in this factory receiving less than Rs.1600 a month
No employed person can give up by contract or agreement his rights under the Act.
―Wages‖ means all remuneration payable to an employed person on the fulfilment of his contract of
employment.
− It includes bonus and any sum payable for want of a proper notice of discharge.
− It excludes –
a) The value of house-accommodation, supply of light, water, medical attendance, or other amenity or of
any service excluded by the Central Government;
b) The employer‘s contribution to a pension or provident fund;
c)
Travelling allowance or concession or other special expenses entailed by the employment;
d) Any gratuity payable on discharge.
Responsibility for and Method of Payment:
4.
5.
6.
7.
The manager of the factory is responsible for the payment under the Act of wages to persons employed
under him and any contractor employing persons is responsible for payment to the persons he employs.
Wage-periods shall be fixed for the payment of wages at intervals not exceeding one month.
Wages shall be paid on a working day within 7 days of the end of the wage-period (or within 10 days if
1,000 or more persons are employed). The wages of a person discharged shall be paid not later than the
second working day after his discharge.
Payments in kind are prohibited.
Fines and Deductions:
8.
No deduction shall be made from wages except those authorized under the Act (see Paragraphs 9-15
below).
9. (1) Fines can be imposed only for such acts and omissions as the employer may, with the previous
approval of the Supervisor, specify by a notice displayed at or near the main entrance of the factory and
after giving the employed person an opportunity for explanation.
(2) Fines –
a) Shall not exceed three per cent of the wages payable to him in respect of that wage period in which fine
imposed.
b) Shall not be recovered by installments, or later than sixty days of the date of imposition.
c) Shall be recorded in a register and applied to such purposes beneficial to the employed persons
approved by the Supervisor.
10. (a) Deduction for absence from duty can be made only on account of the employed person at times when
he should be working and such deductions must not exceed an amount which is in the same proportion
to his wages for the wage-period at the time he was absent in that period is to the total time he should
have been at work.
(b) If ten or more employed persons, acting in concert, absent themselves without reasonable cause and
without due notice, the deduction for absence can include wages for eight days in lieu of notice, but –
72
(1) No deduction for breaking a contract can be made from a person under 15 or a woman;
(2) There must be a provision in writing which forms part of the contract of employment, requiring that a
specific period of notice of intention to cease work not exceeding 15 days or the period of notice which
the employer has to give to discharge a worker, must be given to the employer and that wages may be
deducted in lieu of such notice;
(3) The above provision must be displayed at or near the main entrance of the factory;
(4) No deduction of this nature can be made until a notice that this deduction which is to be made has been
posted at or near the main entrance of the factory;
(5) No deduction must exceed the wages of the employed person for the period by which the notice he
gives of leaving employment, is less than the notice he should given under his contract.
11. Deductions can be made for damage to or loss of goods expressly entrusted to an employed person or
for loss of money for which he is required to account, where such damage or loss is due to his neglect or
default.
Such deduction cannot exceed the amount of the damage or loss caused and can be made only after
giving the employed person an opportunity for explanation.
12. Deductions can be made, equivalent to the value thereof, for house-accommodation, amenities or
services (other than tools and raw material) supplied by the employer provided these are accepted by
the employed person as a part of the terms of his employment and have in the case of amenities and
services been authorized by order of the Central Government.
13. (a)
Deductions can be made for the recovery of advances or for adjustment of over-payment of
wages.
(b) Advances made before the employment began can only be recovered from the first payment or wages
for a complete wage-period but no recovery can be made of advances given for travelling expenses
before employment began.
(c) Advances of unearned wages can be made at the paymaster‘s discretion during employment.
14. Deductions can be made for subscription to and for repayment advances from any recognized provident
fund.
15. Deductions can be made for payments to cooperative societies approved by the Central Government or
to the postal insurance, subject to any conditions imposed by the Central Government.
Inspections:
16. An Inspector can enter in any premises, and can exercise powers of inspection (including examination of
documents and taking of evidence) as he may deem necessary for carrying out the purposes of the Act.
Complaints of Deductions or Delays:
17. (a)
Where irregular deductions are made from wages or delays in payment take place, an employed
person can make an application in the prescribed form within 6 months to the Authority appointed by
the local Government for the purpose. An application delayed beyond this period may be rejected unless
sufficient cause for the delay is shown.
(b) Any legal practitioner, official of a registered trade union, Inspector under the Act, or other person
acting with the permission of the Authority can make the complaint on behalf of an employed person.
(c) A single application may be presented by or on behalf of number of persons belonging to the same
factory, the payment of whose wages has been delayed.
Action by the Authority:
18. The Authority may award compensation to the employed person in addition to ordering the payment of
delayed wages or the refund of illegal deductions. If a malicious or vexatious complaint is made, the
Authority may impose a penalty not exceeding Rs.50 on the applicant and order that it be paid to the
employer.
73
Appeal against the Authority:
19. An appeal in the prescribed form against a direction made by the Authority may be preferred within 39
days in Madras, Bombay, Calcutta, to the Court of Small Causes and elsewhere to the District Court –
a. By the paymaster if the total amount directed to be paid exceeds Rs.300;
b. By an employed person, if the total amount of wages withheld from him or his co-workers exceeds
Rs.50;
c. By a person directed to pay a penalty for a malicious or vexatious application.
(A) Payment of undisbursed wages:(1) If all amounts payable to an employed person as wages could not or cannot be paid on account of his
death before payment or on account of his whereabouts not being known, shall be paid to the person
nominated by him in this behalf.
(2) Where wages remain undisbursed because no nomination had been made by the employed person or for
any reason such amounts could not be paid to the nominee of the employed person until the expiry of
three years from the date the same had become payable all amounts of such undisbursed wages shall be
transferred by the accounts officer to the Staff Benefit Fund before the expiry of the fifteenth day after
the last day of the said period of three years.
(B) Manner of dealing with deposited amounts – The amounts of undisbursed wages deposited with the
Chairman Staff Benefit Fund shall be applied by him to meet the expenditure for the purpose prescribed
for the Staff Benefit Fund.
20. Anyone delaying the payment of wages beyond the due date, or making any unauthorized deduction
from wages is liable to a fine up to Rs.500 only if prosecuted with the sanction of the Authority or the
Appellate Court.
21. The paymaster who –
a. Does not fix a wage-period, or
b. makes payment in kind, or
c. fails to display at or near the main entrance of the factory this abstract in English and the language of the
majority of the employed persons, or
d. breaks certain rules made under the Act,
is liable to a fine not exceeding Rs.200. A complaint to this effect can be made only by the Inspector or with
his sanction.
74
DEFINITION OF WAGES UNDER VARIOUS ACT
Act
Inclusion
Exclusion
Basic + D. A. / Special Except Washing Allowances
&
All
other (where Cloth & Stitching are
Employees‘ State Insurance Act, Allowances
Allowances = Gross Salary
provided)
1948
Basic + D. A. / Special
Payment of Wages Act, 1936
Allowances &
All other
Allowances = Gross Salary
Basic + D. A. / Special
The Minimum Wages Act, 1948 Allowances &
All other
Allowances = Gross Salary
The Payment of Bonus Act, 1965
Basic + D.A.
All other Allowances.
Payment of Gratuity act, 1972
Basic + D.A.
All other Allowances.
The
Employees
Provident
Funds
&
Miscellaneous Basic + D.A.
All other Allowances.
Provision Act, 1952
Basic + D. A. / Special
Allowances &
All other
Factories Act, 1948
Allowances = Gross Salary
The
Bombay
Shops
& Basic + D. A. / Special
Establishment Act, 1948
Allowances &
All other
Allowances = Gross Salary
The Mumbai Labour Welfare Basic + D. A. / Special
Fund Act, 1953
Allowances &
All other
Allowances = Gross Salary
Maharashtra Worker‘s
Minimum H.R.A. Act, 1983
5%, on Basic + D. A.
All other Allowances.
Maharashtra
Act, 1975
Profession
Tax Basic + D. A. / Special
Allowances
&
All
other
Allowances = Gross Salary
The Contract Labour Act, 1970
Basic + D. A. / Special
Allowances
&
All
other
Allowances = Gross Salary
The Maternity Benefit Act, 1961 Basic + D. A. / Special
Allowances
&
All
other
Allowances = Gross Salary
75
Notice for absent from duty after completion of sanction leave or remaining absent from work
without any permission / sanction from the employer.
FIRST NOTICE
To:
BY REGD. A.D.
Date:
It is reported that you are absenting yourself with effect from
without
obtaining prior sanction of leave. You are directed to report for duty alongwith an explanation for
your absence within three days on receipt of the notice, failing which we will draw a presumption
that you are no longer interested in the employment.
Signature & stamp of Employer
SECOND NOTICE
To:
.
BY REGD. A.D.
Date:
This is in continuation to our notice-dated 29/11/2001, where in you were called upon to
report for duty along with an explanation within three days. However, deposited receipt of the
notice, you have failed to make compliance. It is therefore obvious that you are not interested in
the employment. Before we draw a presumption to this effect, we give you this final resumption
of duty within three days, failing which we will be within our rights to draw an irresistible
presumption that you are no longer interested in the employment.
The above notice is without prejudice to our rights for taking disciplinary action for your
willful absence & when you report to us.
Signature & Stamp of Employer
76
THIRD NOTICE
To:
.
BY REGD. A.D.
Date:
This is in continuation of our notice dated 29/11/2001 &24/12/2001. We regretted to point
out that you have failed to make the compliance i.e. neither you have reported for duty nor
submitted any explanation. We have clearly notified to you that in case you will not make the
compliance, we will draw a presumption that you are no longer interested in the employment.
Accordingly, you are deemed to have abandoned the employment of your own accord W.E.F.
& you are advised to settle your account & handover the charge on any
working day.
Signature & Stamp of Employer
77
Maharashtra State Minimum Wages Chart for the period
from 01/01/2015 to 30/06/2015
(Basic + Special Allowance) (FOR SELECTED INDUSTRIES)
(1.Respective Special Allowance (D.A.) given after industry at the top.
2. The Rates are 'Per Month')
FROM 1.1.2015 TO 30.6.2015
ADVOCATE OR ATTORNEYS
Zone
I
II
Rs.2212.00
Skilled
10112.00
9712.00
AUTOMOBILE REPAIRING
Category
Skilled
S-Skilled
Un-Skilled
Zone I
8608.00
8208.00
7908.00
Zone I
8402.50
7902.50
7402.50
Zone Ill
8008.00
7608.00
7308.00
Zone II
8202.50
7702.50
7202.50
Special Allowance
Zone Ill
8002.50
7502.50
7002.50
Rs.1988.00
Skilled
9688.00
9388.00
9188.00
CARD BOARD BOXES
Zone
Skilled
Semi-Skilled
Un-Skilled
Zone II
8308.00
7908.00
7608.00
Special Allowance
Rs.3202.50
CANTEEN & CLUBS
Zone
I
II
Ill
Un-Skilled
8912.00
8512.00
Rs.3108.00
BAKERIES
Category
Skilled
S-Skilled
Un-Skilled
Semi-Sk
9412.00
9012.00
Special Allowance
S-Skilled
8988.00
8688.00
8488.00
Special Allowance
Un-Skilled
8488.00
8188.00
7988.00
Rs.2747.25
I
7397.25
7147.25
6897.25
II
7147.25
6897.25
6647.25
Special Allowance
Ill
6897.25
6647.25
6397.25
CEMENT & CEMENT
Rs.3596.40
Zone
Skilled
II
Special Allowance
Ill
Semi-Skilled
Un-Skilled
78
Rs.2942.50
CHEMICAL FERTILIZERS
Special Allowance
Zone
Skilled
Semi-Sk
Un-Skilled
I
8542.50
8042.50
7542.50
II
8342.50
7842.50
7342.50
Ill
8142.50
7642.50
7142.50
Rs.2996.50
CINEMA EXHIBITION
Multiplex
Class of Employees
Special Allowance
Zone I
Zone II
Touring talkies
Skilled
8496.50
7996.50
7496. 50
6996. 50
Semi-Skilled
7996. 50
7496.50
6996.50
6496. 50
Un-Skilled
7496. 50
6996.50
6496.50
5996.50
CLOTH DYEING & PRINTING
Rs.3202.50
Special Allowance
Zone
Skilled
Semi-Sk.
Un-Skilled
I
8102.50
7602.50
7302.50
II
7802.50
7302.50
7002.50
CONSTRUCTION OF ROADS/BUILDINGS
Rs.2520.50
Zone
Semi-Sk
Skilled
Special Allowance
Un-Skilled
I
12620.50
11920.50
11420.50
II
12220.50
11520.50
11020.50
Ill
11820.50
11120.50
10620.50
COTTON GINNING OR COTTON PRESSING
Rs.2913.75
Special Allowance
Class of Employees
Zone I
Zone II
Zone Ill
Skilled
8113.75
7913.75
7713.75
Semi-Sk
7613.75
7413.75
7213.75
Un-Skilled
7113.75
6913.75
6713.75
CYCLE MECHANIC
Rs.2808.75
Special Allowance
Zone
Skilled
Semi-Sk
Un-Skilled
Zone I
8308.75
7808.75
73C8.75
Zone II
7808.75
7308.75
0808.75
DAIRY
Rs.3052.50
Special Al!owance
Skilled
S-Skilled
Un-Skilled
8552.50
8052.50
7552.50
II
8302.50
7802.50
7302.50
Ill
8052.50
7552.50
7052.50
Zone
I
I
DISPENSARY
Zone
Rs.2059.00
·-
Special Allowan.;e
Skilled
Semi-Sk
Un-Skilled
I
11059.00
10859.00
10559.00
II
10759.00
10359.00
10059.00
Ill
10059.00
9859.00
9559.00
79
Rs.1988.00
DRUGS & PHARMACEUTICALS
Zone
Skilled
SemiSkil led
I
9688.00
8988.00
8488.00
II
9388.00
8188.00
Ill
9188.00
8688.00
8488.00
Un-Skilled
7988.00
Rs.3191.50
DYES & CHEMICALS
Zone
Skilled
Semi-Sk
Un-Skilled
I
II
7991.50
7591.50
7691.50
7391.50
7291.50
6991.50
Ill
6991.50
6691.50
6391.50
Zone
Zone I
Skilled
9588.00
Semi-Skilled
9788.00
9088.00
Zone Ill
9188.00
8888.00
8488.00
Un-Skilled
8588.00
8388.00
7988.00
Zone II
Special Allowance
Rs.3148.80
EXERCISE BOOKS
Zone II
Zone I
Special Allowance
Zone Ill
Skilled
6228.80
6028.80
5828.80
Semi-Skilled
6128.80
5928.80
5728.80
Un-Skilled
6028.80
5828.80
5628.80
Rs.3432.75
FOUNTAIN PENS
Ski lled
J
Semi-Sk
UnSkilled
I
8732.75
8482.75
8232.75
II
8532.75
8282.75
8032.75
FACTORIES UNDER F.A.
Zone
Special Allowance
Rs.1988.00
ENGINEERING
Zone
Special Allowance
Rs. 2808.75
Skilled
Semi-Sk
Un-Sk.
I
8308.75
7808.75
7308.75
II
8008.75
7508.75
7008.75
Ill
7708.75
7208.75
6708.75
FILM PRODUCTION
Rs. 3210.00
Zone
Skilled
Semi-Sk
I
8910.00
8410.00
7910.00
II
8710.00
8210.00
7710.00
Special Allowance
I
Special Allowance
Special Allowance
Un-Sk.
80
FOREST AND FORESTRY
Special Allowance
Rs.2557.50
Skilled
Semi-Sk
Un-Skilled
Highly Remote Areas
8557.50
8157.50
7757.50
Other Areas
8057.50
7657.50
7257.50
GLASS BULB
Special Allowance
Rs.1988.00
Zone
Skilled
I
II
Ill
9788.00
9588.00
9188.00
GLASS INDUSTRY
Semi-Sk
9088.00
8888.00
8488.00
Un-Skilled
8588.00
8388.00
7988.00
Rs.1988.00
Special Allowance
Zone
Skilled
Semi-sk
I
II
Ill
9688.00
8988.00
8488.00
9388.00
9188.00
8688.00
8488.00
8188.00
7988.00
HAIR CUTTING SALOON
Un-skilled
Special Allowance
Rs.1988.00
Zone
Skilled
Semi-Sk
Un-skilled
I
9688.00
8988.00
8488.00
II
9388.00
8688.00
8188.00
Ill
8888.00
8188.00
7688.00
HANDLOOM
Rs.2358.75
Zone
Special Allowance
Skilled
S-Skilled
Un-Skilled
I
Upto 50 looms
6358.75
5858.75
5358.75
II
51 to 100 looms
6858.75
6358.75
5858.75
Ill
Above 100 looms
7358.75
6858.75
6358.75
HOSPITAL
Zone
Rs.2720.25
Special Allowance
Skilled
Semi-Sk
Un-Skilled
I
8920.25
8420.25
8020.25
II
8720.25
8220.25
7820.25
Ill
8520.25
8020.25
7620.25
HOTEL & RESTAURANTS
Zone
I
II
Ill
Rs.1988.00
Skilled
Semi-Sk
Un-Skilled
9688.00
8988.00
8688.00
8488.00
9388.00
9188.00
ICE & COLD DRINKS
Zone
Special Allowance
8488.00
8188.00
7988.00
Rs. 2311.20
SpecialAllowance
Skilled
Semi-Sk
Un-Skilled
I
8311.20
7811.20
7311.20
II
8011.20
7511.20
7011.20
81
LAUNDRY
Zone
Rs.1988.00
Special Allowance
Skilled
Semi-Sk
UnSkilled
I
II
9688.00
8988.00
8488.00
9388.00
8688.00
8188.00
Ill
9188.00
8488.00
7988.00
LIQUOR INDUSTRIES
Rs.3148.80
Special Allowance
I
II
Ill
Skilled
7258.80
6958.80
6658.80
Semi-Sk
7158.80
6858.80
6558.80
Un-Skilled
7058.80
6758.80
6458.80
Zone
OIL MILLS
Rs.3202.50
Category
Zone I
Zone II
Skilled
8502.50
8202.50
S-Skilled
8002.50
7702.50
Un-Skilled
7502.50
7202.50
OPTICAL FRAMES
Zone
Special Allowance
Special Allowance
Rs.2889.00
Skilled
Semi-Sk
Un-Skilled
I
8489.00
7989.00
7489.00
II
8289.00
7789.00
7289.00
Ill
8089.00
7589.00
7089.00
PAINTS & VARNISHES
Rs.1988.00
Special Allowance
Skilled
Semi-Sk
Un-Skilled
I
II
10188.00
9488.00
8988.00
9788.00
9088.00
8588.00
Ill
9388.00
8688.00
8188.00
Zone
Rs.2673.75
PAPER AND PAPER BOARD
Zone
Special Allowance
Skilled
Semi-Sk
Un-Skilled
I
8773.75
8273.75
7773.75
II
8573.75
8073.75
7573.75
Ill
8373.75
7873.75
7373.75
PLASTICS
Rs. 2808.75
Special Allowance
Zone
Skilled
Semi-Sk
Un-Skilled
I
8108.75
7608.75
7108.75
II
7958.75
7458.75
6958.75
Ill
7808.75
7308.75
6808.75
82
Rs. 3202.50
POHA,KURMURA
Special Allowance
Zone
Skilled
Semi-Skilled
Un-Skilled
I
7602.50
7452.50
7002.50
II
7402.50
7252.50
6802.50
POTTERIES (MATICH! BHANDI)
Special Allowance
Rs.2442.00
Zone I
Zone II
Zone Ill
Skilled
6342.00
6192.00
6042.00
Semi-Skilled
6142.00
5992.00
5842.00
Un-Skilled
5942.00
5792.00
5642.00
POWERLOOMS
Rs.1073.00
Special Allowance
(w.e.f. 29.1.2015}
Zone
Skilled
S-Skilled
Un-Skilled
I
11173.00
10573.00
10073.00
II
10573.00
10073.00
9573.00
Ill
9573.00
9073.00
8573.00
POWERLOOMS Above 184/-
Zone
Rs.6809.00
Skilled-A
Skilled-B
Semi-Sk
Un-Sk.
I
7109.00
7079.00
7049.00
II
7059.00
7029.00
Ill
7009.00
6979.00
Manager
Accountant
Clerk
7039.00
7159.00
7109.00
7059.00
6999.00
6989.00
7109.00
7059.00
7009.00
6949.00
6939.00
7059.00
7009.00
6959.00
POWERLOOMS Less than 184/-
Zone
Skilled-A
Skilled-B
Special Allowance
(1.1.2015 to 28.1.2015)
Rs.4766.30
Semi-Sk
Un-Sk.
Special Allowance·
(1.1.2015 to 28.1.2015)
Manager
Accountant
Clerk
I
5066.30
5036.30
5006.30
4996.30
5116.30
5066.30
5016.30
II
5016.30
4986.30
4956.30
4946.30
5066.30
5016.30
4966.30
Ill
4966.30
4936.30
4906.30
4896.30
5016.30
4966.30
4916.30
PREMISES WHEREIN BUFFALOES OR COWS ARE KEPT
Zone
Skilled
Semi-Sk.
Un-Sk.
I
7279.20
6979.20
6679.20
II
6929.20
6654.20
6379.20
Ill
6579.20
6329.20
6079.20
Rs.3379.20
Special Allowance
83
Special Allowance
Rs.3148.80
PRINTING PRESS
Zone
Skilled
Semi-Sk
Un-Sk.
I
7748.80
7648.80
7548.80
II
7448.80
7348.80
7248.80
Ill
6848.80
6748.80
6648.80
Special Allowance
Rs.3202.50
PUBLIC MOTOR TRANSPORT
Zone
Skilled-A
Skilled-B
Skilled-C
Semi-Sk
Un-Skilled
I
8902.50
8702.50
8502.50
7802.50
7402.50
II
8702.50
8502.50
8302.50
7602.50
7202.50
READYMADE GARMENTS
Zone
I
II
Ill
Special Allowance
Rs.3148.80
Skilled
Semi-Sk
Un-Skilled
7308.80
7208.80
7108.80
7208.80
7108.80
7008.80
6908.80
6808.80
6708.80
RICE FLOUR & DAL MILLS
Special Allowance
Rs.3202.50
Zone
Skilled
Semi-Sk.
Un-Skilled
I
7802.50
7302.50
7002.50
II
7602.50
7102.50
6802.50
RUBBER INDUSTRIES
Rs.1988.00
Zone
Skilled
Semi-Sk
Un-Skill
r
9688.00
8988.00
8488.00
II
9388.00
8688.00
8188.00
Ill
9188.00
8488.00
7988.00
RUBBER BALLOON
'-'
Rs.3202.50
Special Allowance
Special Allowance
Zone I
Zone II
Zone Ill
Skilled
7502.50
7402.50
7302.50
Semi-Sk
7302.50
7102.50
7002.50
Un-Skilled
7002.50
6902.50
6802.50
SALT PAN INDUSTRY
Rs.2808.75
Highly-skilled
7808.75
Skilled
7408.75
Semi-Skilled
7108.75
Un-Skilled
6808.75
Special Allowance
84
Rs.2808.75
SAWMILLS
Zone I
Zone II
Zone Ill
Skilled
8208.75
8008.75
7808.75
Semi-Sk
7708.75
7508.75
7308.75
Un-Sk.
7208.75
7008.75
6808.75
Rs.2902.80
SEEPZ
Special Allowance
Zone I
9202.80
8702.80
Skilled
Semi-Sk
Un-Sk.
8202.80
SHOPS & COMMERCIAL ESTB.
Skilled
Semi-Skilled
Un-Skilled
SpecialAllowance
Special Allowance
Rs.2511.00
Zone I
Zone II
Zone Ill
8311.00
7911.00
7511.00
8011.00
7611.00
7211.00
7711.00
7311.00
6911.00
SILVER ARTICLES OR ORNAMENTS INDUSTRY
Rs.2942.50
Special Allowance
Zone
Skilled
Semi-Sk
Un-Sk.
I
8442.50
7942.50
7442.50
II
8142.50
7742.50
7242.50
SOAPS & COSMETICS
Rs.1988.00
Zone
Skilled
Semi-Sk
Un-Sk.
I
9688.00
8988.00
8488.00
II
9388.00
8688.00
8188.00
Ill
9088.00
8388.00
7888.00
STEEL FURNITURE
Rs.3148.80
Zone
Skilled
Semi-Sk.
Un-Sk.
I
6988.80
6888.80
6788.80
II
6788.80
6688.80
6588.80
Ill
6588.80
6488.80
6388.80
STONE BREAKING
Rs. 3134.25
Zone
Skilled
Semi-Sk.
Un-Sk.
I
7884.25
7384.25
7084.25
II
7684.25
7184.25
6884.25
Special Allowance
Special Allowance
Special Allowance
85
Rs.2913.75
SWEEPERS OR SCAVENGERS
Special Allowance
Category
Zone I
Zone II
Zone Ill
Full time
7513.75
7363.75
7213.75
TANNERIES & LEATHER
Rs.3148.80
Un-Sk. '
Skilled
Semi-Sk.
I
6548.80
6448.80
6348.80
II
6348.80
6248.80
6148.80
Ill
6148.80
6048.80
5948.80
Zone
UTENSILS
Rs.3148.80
Skilled
Semi-Sk.
Un-Sk.
I
7648.80
7548.80
7448.80
II
7548.80
7448.80
7348.80
Ill
7248.80
7148.80
7048.80
Zone
VILLAGE PANCHAYAT
Rs.1775.00
Zone
Skilled
Semi-Sk.
Un-Sk.
I
8875.00
8175.00
7675.00
II
8675.00
7975.00
7475.00
Ill
8075.00
7375.00
6875.00
WATCH STRAPS
Rs.3202.25
Zone
Skilled
Semi-Sk.
Un-Sk.
I
8702.25
8302.25
8002.25
II
8402.25
8002.25
7702.25
Ill
8102.25
7702.25
7402.25
Rs.1988.00
WOODEN PHOTO FRAMES
Zone
Skilled
Semi-Sk.
Un-Sk.
I
9688.00
8988.00
8488.00
II
9388.00
8688.00
8188.00
Ill
9188.00
8488.00
7988.00
WOODEN FURNITURE
Rs.1988.00
Zone
Skilled
Semi-Sk.
Un-Sk.
I
9588.00
9388.00
9188.00
8888.00
8688.00
8488.00
8388.00
8188.00
7988.00
II
Ill
Special Allowance
Special Allowance
Special Allowance
Special Allowance
Special Allowance
Special Allowance
86
Special Allowance in Maharashtra State
The rate of Special Allowance for the period from
1.1.2015 to 30.6.2015
SQecial Allowance for Zone
Sr.
No.
Name ofthe Scheduled Employment
l.
Advocate and Attorney
2.
Period
fl
II[
IV
Rs. Ps
Rs. Ps
Rs. Ps
Rs. Ps
P.M.
2212.00
2212.00
2212.00
Automobile Repairing
P.M.
3108.00
3108.00
3108.00
3.
Bakeries
P.M.
3202.50
3202.50
3202.50
4.
Bricks or RoofTiles
P.M.
2055.00
2055.00
5.
Canteen & Clubs
P.M.
1988.00
1988.00
1988.00
6.
Card Board Boxes
P.M.
2747.25
2747.25
2747.25
7.
Cashew Processing
P.M.
2397.50
(Whole State of Maharashtra)
8.
Cement & Cement Based Industry
P.M.
3596.40
3596.40
3596.40
9.
Chemical Fertilizers
P.M.
2942.50
2942.50
2942.50
10.
Cinema Exhibition
P.M.
2996.50
2996.50
2996.50
11.
Cloth Dyeing & Printing
P.M.
3202.50
3202.50
12.
Construction of Roads/Building
P.M.
2520.50
2520.50
2520.50
13.
Cotton Ginning & Pressing
P.M.
2913.75
2913.75
2913.75
14.
Cycle Mechanic Work Shops
P.M.
2808.75
2808.75
15.
Dairy
P.M.
3052.50
3052.50
3052.50
16.
Dispensary
P.M.
2059.00
2059.00
2059.00
17.
Drugs & Pharmaceuticals
P.M.
1988.00
1988.00
1988.00
18.
Dyes & Chemicals
P.M.
3191.50
3191.50
3191.50
19.
Eatable Tobacco
P.M.
2745.00
(Whole State of Maharashtra)
20.
Engineering Industry
P.M.
1988.00
1988.00
1988.00
21.
Exercise Books
P.M.
3148.80
3148.80
3148.80
22.
Factories under Factories Act
(Residuary)
P.M.
2808.75
2808.75
2808.75
23.
Film Production Studio
P.M.
3210.00
3210.00
----------
24.
Forest & Forestry
P.M.
2557.50
Highly
Remote
Area
2557.50
Other
Areas
---------
25.
Fountain Pen & Ball Pen
P.M.
3432.75
3432.75
3432.75
26.
Glass Bulb
----------
P.M.
1988.00
1 988.00
1988.00
--------·--
27.
G lass Industry
P.M.
19RR.OO
1 988.00
19&8.00
---------87
2996.50
Special Allowance for Zone
Sr.
No.
Name of the Scheduled Employment
28.
Hair Cutting Saloon
29.
Period
[J
m
Rs. Ps
Rs. Ps
Rs. Ps
IV
Rs. Ps
P.M.
1988.00
1988.00
1988.00
---------
Hand loom
P.M.
2358.75
2358.75
30.
Hospital
P.M.
2720.25
2720.25
2358.75 ---------2720.25 --------
31.
Hotel & Restaurants
P.M.
1988.00
1988.00
I 988.00
.........
32.
lee & Cold Drinks
P.M.
2311.20
2311.20
----------
---------
33.
Laundry
P.M.
1988.00
1988.00
34.
Liquor Industries
P.M.
3148.80
3148.80
1988.00 --------3148.80 --------
35.
Oil Mill
P.M.
3202.50
3202.50
----------
36.
Optical Frames
P.M.
2889.00
2889.00
*37.
Paints and Varnishes
P.M.
1988.00
1988.00
2889.00 --------1988.00 --·--····
38.
Paper and Paper Board
P.M.
2673.75
2673.75
39.
Plastic
P.M.
2808.75
2808.75
2673.75 --------2808.75 ---------
40.
Poha/Kurmura
P.M.
3202.50
3202.50
---------
41.
Potteries (Matichi Bhandi)
P.M.
2442.00
2442.00
*42.
Powerloom Industry
P.M.
1073.00
1073.00
2442.00 --------1073.00 ---------
43.
Premises for Buffaloes or Cows
P.M.
3379.20
3379.20
3379.20
---------
44.
Printing Press
P.M.
3148.80
3148.80
3148.80
---------
---------
---------
45.
· Public Motor Transport
P.M.
3202.50
3202.50
46.
Readymade Garments
P.M.
3148.80
3148.80
---------- --------3148.80 ---------
47.
Rice, Flour or Dal Mill
P.M.
3202.50
3202.50
----------
48.
Rubber Balloon
P.M.
3202.50
3202.50
49.
Rubber Industry
P.M.
1988.00
1988.00
3202.50 --------1988.00 ---------
50.
Salt Pan Industry
P.M.
2808.75
51.
Saw Mills
P.M.
2808.75
2808.75
----------------2808.75 ---------
52.
Seepz
P.M.
2902.80
53.
Shops & Commercial Establishments
P.M.
2511.00
2511.00
54.
Soaps & Cosmetics
P.M.
1988.00
1988.00
55.
Silver Industry
P.M.
2942.50
2942.50
56.
Steel Fumitures
P.M.
3148.80
3148.80
3148.80
57.
Stone Breaking & Stone Crushing
P.M.
3134.25
3134.25
58.
Sweeper & Scavengers
P.M.
2913.75
2913.75
--------2913.75
····
------
---------
2511.00 --------1988.00
88
Sr.
No.
Name ofthe Scheduled Employment
59.
Tanneries & Leather
*60.
Special Allowance for Zone
Period
11
Ill
Rs. Ps
Rs. Ps
Rs. Ps
P.M.
3148.80
3148.80
3148.80
Tobacco (Bidi)
P.M.
608.00
608.00
61.
Utensils
P.M.
3148.80
3148.80
3148.80
62.
Village Panchayat Local Authority
P.M.
1775.00
1775.00
1775.00
63.
Watch Straps
P.M.
3202.25
3202.25
3202.25
64.
Wooden Furniture
P.M.
1988.00
1988.00
1988.00
65.
Wooden Photo Frames
P.M.
1988.00
1988.00
1988.00
66.
Shetki Kamdhanda
P.M.
936.25
936.25
936.25
IV
Rs. Ps
936.25
"'Minimum Wages has been revised for the Scheduled Employments shown at SI.Nos.
37,42 and 60
Following Table Shows Rates of Special Allowance for the Scheduled Employment
shown as Sr. Nos. 37, 42 and 60 for which rates of Minimum Wages has been revised
from the dates given below:
SI.No.
Name of Scheduled Employment
and date of Revision of the
Notification
Period of Special Allowance
Special Allowance Per month for
Zone
I
Rs.Ps.
37.
Paints and Varnishes
22.10.2014 to 31.12.2014
42.
Powerloom Industry
(Rs.184/- above)
1.1.2015 to 28.1.2015
(Rs.184/- less than)
60.
Tobacco (Bidi)
•
10.11.2014 to 31.12.2014
II
Ill
Rs. Ps.
Rs. Ps.
1652.00
1652.00
1652.00
6809.00
6809.00
6809.00
4766.30
4766.30
4766.30
361.00
361.00
----------
Rates shown against each items corresponds to area specified against each items in the
respective Scheduled Employments.
Date: 5.2. 2015
89
90
91
THE PAYMENT OF BONUS ACT, 1965
 General :The payment of Bonus Act, 1965 gives to the employees a statutory right to a share in the
profits of his employer. Prior to the enactment of the Act some employees used to get
bonus but that was so if their employers were pleased to pay the same.
 Object :The object of the Act is to maintain peace and harmony between labour and capital (i.e.
employees & employers) by allowing the employees to share the prosperity of the
establishment reflected by the profits earned by the contributions made by capital,
management and labour.
 Applicability :The Act is applicable to
a) Every factory
b) Every other establishment employing 20 (Twenty) or more persons.
c) The Government of Maharashtra by notification dt:- 11th April 1984 has made
applicability of Bonus Act where 10 or more persons employed in any establishment or
Factory.
 The Government can, however, apply the Act to any establishment employing less than 20
but not less than 10 persons.
 Once the Act applies it shall continuously remain in force irrespective of number of
employees fall in number i.e. once covered always covered.
 What about Public Sector?
Public sector establishment which sells any goods produced or manufactured by it or
renders any services in competition with private sector and earns income from such sell or
services shall be covered by the Act.
 Eligibility :Every employee who is drawing a salary or wages up to Rs.10, 000/- per month and has
worked for a minimum period of 30 days in a particular year is entitled to get Bonus. As
per above ceiling all employees drawing wages up to Rs.10,000/- per month shall be
eligible for Bonus irrespective of his grade/ designation i.e. manager / part-time / casual /
seasonal employee etc.(w.e.f. 01/04/2006)
 On what Salary / Wages Bonus is payable :For the purpose of calculation of Bonus Salary or Wages includes Basic Salary, Dearness
Allowance / Special Allowance only, but does not include other allowances such as
Overtime, House Rent Allowance, Conveyance, Travelling Allowance, Monthly Bonus,
Contribution to Provident Fund, Retrenchment compensation, Gratuity or commission.
92
 Calculation of Bonus :1. The employee who is drawing salary or wages not exceeding Rs.3,500/- per month is
entitled to get bonus on entire salary or wages.
2. The employee who is drawing salary or wages between Rs.3,501/- per month and
Rs.10000/- per month, the Bonus payable to him is to be calculated as, if his salary or
wages were Rs.3,500/- per month. An employee getting a salary or wage exceeding
Rs.10000/- per month is not at all entitled to get Bonus as per payment of Bonus Act.
 Minimum & Maximum Bonus :1) The employer is bound to pay his employees every year a minimum Bonus of @ 8.33%
of the yearly salary or wage or Rs.100/- which, ever is higher, whether he has allocable
surplus or not. If any year the allocable surplus exceeds the amount of Minimum Bonus
payable to the employees, the maximum Bonus payable by the employer to his
employee in that particular year is @ 20% of the yearly salary or wages.
2) Hence, Bonus is payable to the employee between 8.33% & 20% as per availability of
allocable surplus.
3) An employer is disabled from paying bonus in excess of 20% even if bonus is linked
with production or productivity.
1. Available Surplus & Allocable Surplus :The Bonus payable under the Act is linked with profits of the company. The employer has
to calculate ―Gross Profit‖ of his establishment in the manner specified in section 4. Than
from Gross Profit so calculated he has to deduct the sums referred to in section 6 as prior
charges. The balance amount is called available surplus i.e. a percentage of available
surplus calculated in accordance with the provisions of sub-section (4) of section 2 is called
allocable surplus.
Where, allocable surplus exceeds the amount of minimum Bonus payable to the employee,
the Employer must pay to every employee in respect of that year Bonus in proportion to the
salary or wages earned by the employee during the year subject to maximum of 20% of
such salary or wage.
2. What is Set On & Set Off of Allocable Surplus :Set On:Where for any year the allocable surplus exceeds the amount of maximum Bonus payable
to the employees, than the excess shall (subject to limit of 20% Bonus of total salary /
wages) be carried forward for being set on in the succeeding year and so on to be utilized
for the purpose of Bonus.
Set Off:Where for any year there is no surplus in respect of that year falls short of the amount of
minimum Bonus payable i.e. 8.33% to the employees and there is no amount or sufficient
amount carried forward and Set On which could be utilized for the purpose of minimum
93
Bonus, than such minimum amount or the deficiency as the case may be shall be carried
forward for being Set Off in succeeding year and so on.
3. Deductions from Bonus :1. In any year the employer has paid any amount to an employee as customary / pooja bonus than
he can deduct such amount from Bonus payable to the employee for that year
2. If any employee is found guilty or misconduct causing financial loss to the employer can
deduct the amount of loss from the amount of Bonus payable to the employee for the
year in which he was found guilty of misconduct.
4. Time limit for payment of Bonus :1. Bonus must be paid within a period of 8 months from the close of accounting year as per
Income Tax Act i.e. April to March.
2. If any dispute about the payment of Bonus pending before any authority than Bonus
must be paid within one month from the date of Awards.
5. Remedy for recovery of Bonus :If any employer fails to pay Bonus to the employee, he can make the application for his
recovery of Bonus to the competent Authority & Authority issues a certificate to the
collector to recover the same as an arrears of land revenue i.e. Attachment of Property &
Assets. However, the time limit for application to the Authority is within one year from the
date on which Bonus amount became due.
6. Productivity Bonus :Bonus paid on production or productivity or under a formula different from that under the
Act can be allowed but subject to the Provisions of the Act in respect of the payment of
minimum or maximum Bonus. However, Attendance Bonus or any other allowances are
outside the purview of payment of Bonus Act.
If a Management has a number of departments, under takings or branches, should they
be treated as separate establishments or as one composite establishment?
If an establishment consist of different departments or undertaking or has branches,
whether situated in the same place or in different places, unless a separate balance-sheet
and profit and loss account are prepared and maintained in respect of them, all such
departments or undertaking or branches should be treated as parts of the same
establishments for the purpose of computation of bonus, and once they are treated as parts
of the same establishment, they should be continued to be treated as such.
7. Contractors Employees Bonus Payable???
Section 32 provides that the Act shall not apply to certain classes of employees clause (vi) of
the said section refers to ―employees employed through contractors on building operation‖.
This clause is deleted by the Payment of Bonus Amendment Ordinance, 2007 with
retrospective effect from 1 April 2006. The said class of employees is therefore, entitled to
get bonus with retrospective effect from 1st April 2006
94
8. Excluded categories :Following categories are excluded from application of the Bonus Act:
1. L.I.C. of India
2. Reserve Bank of India
3. Unit Trust of India
4. Universities & other Educational Institutions
5. Any other establishments permitted by Government for a specified period and
subject to specified conditions.
9. Newly set-up establishment :The newly set-up establishment is exempted from paying Bonus to its employees in the first
5 (Five) years, if it does not make any profit. If however, employer derives profit in any of
the first five years, it loses the exemption under the Act and he has to pay Bonus for that
year. The provisions of Set-On & Set-Off are not applicable in such cases.
10. Disqualifications for receiving Bonus :Employee is disqualified from receiving Bonus if he is dismissed from the service for
Fraud (B) Riotous or Violent behavior while on the premises of the establishment
Theft, misappropriation or sabotage of any property of Establishment.
(A)
(C)
11. Agreement or Settlement of Bonus:Employees can enter into an agreement or a settlement with their employer for granting
them bonus under a formula different from that under the Act, i.e. bonus linked with
production or productivity; but subject to the provisions of the Act in respect of payment of
minimum and maximum bonus.
12. Attendance Bonus:As attendance bonus which was being paid by the establishment was outside the purview
of the Payment of Bonus Act, 1965, workmen of the establishment can claim the bonus
payable under the act over and above the attendance bonus
13. Is Seasonal Worker entitled to get Bonus?
Section 8, relates to the eligibility for Bonus. The Only requirement of that section is that the
employee should have worked in an establishment for not less than thirty working days in
an accounting year. Therefore, if a seasonal worker has worked in an establishment for
more than thirty working days, he shall be entitled to get bonus.
14. Records to be maintained :1. A register in ―Form No. A‖ showing Computation of Allocable Surplus.
2. A register in ―Form No. B‖ showing Set-On & Set-Off of the allocable surplus.
3. A register in ―Form No. C‖ showing details of the Bonus due to each of the employee
& deductions under Section 17 & 18 and the amount actually disbursed.
95
4. Annual Return:Purpose
When to Submit
Form/
By Whom
To Whom
Relevant
Return
Section / Rule
1
2
3
4
5
6
Submission of Within 30 days Form – D
Every
Labour
Section 26 read
after the expiry of
Annual Return
employer Officer of the with rules 5.
time limit specified
concerned
under the act
area
Offences / Punishments:If any persons contravenes the provision of the Act or any rule made there under or fails to
comply with any directions given to him he would be punished with imprisonment up to six (6)
months or with fine up to Rs.1,000/- or both.
Recent Court Judgement:1) Religious Institute & Trading
The institute is a religious institute and it has a temple. Over 20 persons are employed but the
establishment has halls which are given for seminars, marriage purpose etc. It is not even
registered under the Shops and Estb. Act. The rent earned from hiring out the hall is quite huge
and the employees are not being paid any bonus although the salaries are paid regularly
Are not the employees entitled for Bonus?
The Institute appears to be an establishment not covered under the Shops & Estb. Act and it is
not at all a factory or commercial establishment. The Bonus Act applies to every factory and
other establishments in which more than 20 persons are employed. Being a religious
institutions one cannot call it a commercial establishment. But at the same time the commercial
outlook and approach of the institution cannot be ignored if the money earned from letting out
of the hall for marriages and other culture functions it is required to be examined whether the
trust is making profits out of the annual income. The institution may have developed the hall
and designed with profit out of the annual income. The institution may have developed the
hall and designed with profit motive although it may or may not make profit. If the temple is
not earning profits and whatever income which is derived is spent for development of
religious and renaissance of religious, culture activities you cannot treat it as a commercial
venture. The fact that it is attached to a ashram or a temple, it cannot be treated as an integral
of the religious institutions, it all depends on the merit of each case. If the letting out of the hall
is with a commercial outlook certainly the employees employed therein are entitled for bonus.
1980 – AIR (S.C) – 604 – Workmen of Tirumala Tirupati Devasthanam v. Management & Ors.
2011 – I CLR – 919 – Shri Vatavrikasha Swami Maharaj Devasthan, Akkalkot v. State of Maharashtra
through its Secretary to the Ministry of Industry, Labour & welfare, Mantralaya & Ors .
Summary:The Payment of Bonus Act applies to all factories and establishments employing 20 or more
persons on any day during an accounting year. The term ―employee‖ includes any person (other
than an apprentice) employed on a salary or wage not exceeding Rs. 10,000 per month in any
industry doing any skilled, unskilled, manual, supervisory, managerial, administrative, technical,
or clerical work or hire or reward.
96
THE MAHARASHTRA LABOUR WELFARE FUND
ACT, 1953
Applicability:Applicable to the whole of Maharashtra
Establishments:Means a Shops, Commercial Establishments, Residential Hotel, Restaurant, Eating House, Theatre,
or other places of public amusements or entertainment to which this Act applies or such other
establishments to which the Act applies by Notification, in which more than 5 employees work on
any day during the preceding 12 months including exempt establishment u/s. 4
Employee:1. Includes: - Person employed for hire or reward in any kind to work, manual, clerical,
supervisory or technical in an establishment.
2. Excludes: - (1) Person in Managerial Capacity, (2) Person in Supervisory Capacity whose
wages excess Rs. 3500/- or (3) Apprentices engaged under the Apprentices Act.
Unpaid Accumulation:Payment due to the employee not made to them within 3 years which includes wages and gratuity
payable but does not includes the Provident Fund Contribution.
Welfare Fund: Fund consists of
(a) Fines from the Employees.
(b) Unpaid Accumulations transferred to the Fund (bb) Penal Interest paid u/s. 6B (bbb) any
contribution paid u/s. 6BB.
(c) Voluntary Donations.
(d) Fund Transferred u/s. 5 of Sec. 7
(e) Sum Borrowed u/s. 8.
(f) Loan, grant in aid or subsidy by State Govt.
Contribution:1. Payable in respect of employees by the employer, employee and State Govt. to the board
which Forms part of the Fund.
2. Contribution is payable every Six months in respect of employee and employer at the rate of:a) In respect of employees whose names stand on register of establishment as on 30 th June
and on every 31st Dec. and thereafter.
i) If drawing wages up to and inclusive of Rs. 3000/- per mensum Rs. 6/97
ii) If drawing more than Rs. 3000/- per mensum Rs. 12/b) In respect of employer for employees mentioned above is thrice the amount of
contribution payable by the employees.
Provision: State Govt. May increase the rate of employee‘s contribution once in every 3yrs. which shall not
exceed 30% of rate of contribution.
3. Employer to pay both his employees contribution before 15th day of July and 15th day of
January.
4. No Deduction of employer‘s contribution by employer from the wages of employees.
5. Payment of the board by cheque, money order or in cash.
Interest on unpaid accumulation or fine after notice of demand:Notice shall be sent by the welfare commissioner on failure of employer to pay the unpaid
accumulation or fine realised by the employee or amount of contribution u/s. 6BB.
On employer failure to pay within the time i.e. not less than 30 days from the date of notice is
liable to pay simple interest:1) In case of Failure to pay unpaid accumulation and fine &
2) In case of Failure to pay Contribution amount
The Rate of interest will be 1 ½ % applicable for the first 3 months. & 2% of the amount for each
completed month for the continuous default in the payment.
Application of Fund:The money in the Fund may be utilized by the Board to defray expenditure on the following:a) Community & Social education centers including reading rooms & libraries;
b) Community necessities;
c) Games & Sports;
d) Excursions, tours & holiday homes,
e) Entertainment and other forms of recreations;
f) Home industries and subsidiary occupations for women and unemployed persons,
g) Corporate activities of a social nature;
h) Cost of administering the Act (includes the salaries, allowances, pensions, provident fund
and gratuity and other fringe benefits of the staff) appointed for the purpose of the Act; and
i) Such other objects as would in the opinion of the State Government improve the standard of
living and ameliorate the social conditions of labour.
Penalty: Person wilfully obstructing the inspector from discharging his duty or exercising the power under
the Act or fails to produce the records or registers or other documents on demand for inspections
shall on conviction be punished.
98
a) For the first offence with imprisonment for a team which may extend to 3 months or fine which
may extend to 500/- or both.
b) For subsequent offences imprisonment for a term which may extend to 6 months or fine which
extends to 1000/- or both.
Submission:The Form A-1-Cum-Return along with cheque to be submitted at….
The Welfare Commissioner,
Maharashtra Labour Welfare Board,
Hutatma Babu Genu Mumbai Gimi Kamgar Krida Bhavan,
Senapati Bapat Marg, Elphinstone Road,
Mumbai- 400 013.
99
100
101
THE PAYMENT OF GRATUITY ACT, 1972
An employee expects and deserves, as a matter of right, some reward when he retires after a long
meritorious service. The enactment of the payment of gratuity act, 1972 has fulfilled this
expectation of an employee. This act has came into existence since 16th Sept 1972.
What is Gratuity?
Gratuity is a short of an award which an employer pays out of his Gratitude, to an employee for
his long and meritorious services, at the time of his retirement, or termination of his services.
Payment of Gratuity is however, compulsory for employers subject to Eligibility. (stated as below)
Under the act an employee become, entitle to earn gratuity after putting in service of minimum
five years. When an employee dies while in service his nominee or heirs are entitle to get gratuity
even if the employee had put in less than 5 yrs. service. The rate of gratuity is 15 days salary
every year of service but the total amount of gratuity cannot exceed Rs. 350000/- ; recently from
24th May 2010, Central Govt. by Gazette Notification enhance the limit upto Rs. 10,00,000/(Rupees Ten Lac)
Object:The payment of gratuity act, 1972 has been passed with the object of providing a uniform scheme
for payment of gratuity to industrial workers throughout the country.
1.
2.
3.
4.
5.
a)
Applicability:Every factory (as defined in Factories Act), mine, oilfield, plantation, port and Railway Company.
Every shop or establishment to which Shops & Establishment Act of a state applies in which 10 or
more persons are employed at any time during the year and
Any establishment employing 10 or more persons as may be notified by the Central Government.
Once act applies, it continues to apply even if employment strength falls below 10.
The Act also has been made applicable to :Motor Transport undertaking, b) Clubs, c)Inland Water Transport Establishments
d) Local Bodies and e) Solicitors Officers.
Eligibility:-
1. Any employee has to render minimum five years‘ of service.
2. At the time of retirement or resignation or on superannuation, an employee should have rendered
continuous service of not less than five yrs.
3. In case of death or disablement, the gratuity is payable, even if he has not completed 5 yrs of
service.
Notice of Opening, Change or closure of An Establishment:An employer has to send a notice in Form A to the Controlling Authority of the area within 30
days of the Rules as becoming applicable. In addition to that, Form B is to be submitted within 30
102
days of any change in the name, address, employer or nature of business whereas an employer has
to send From C intending to close down the business atleast 60 days before intended closure.
It is permissible Opt for Better Gratuity Scheme:An employee can, no doubt opt for scheme other than the payment of Gratuity Act, if it appears to
be better, but on adoption of that, he has to abide by the Scheme in to. The supreme court has held
that sub-section (5) of section 4 of the payment of gratuity act does not contemplate that the
employee would be at liberty to opt for better terms of the contract, by keeping option open in
respect of a part of the statute. While reserving his right to opt for beneficial provisions of the
statute, he has to opt for either of them and not the best of the terms of the statute as well as those
of the contacts. He cannot have both, such a constructions would defeat the purpose for which
sub-section (5) of section 4 has been enacted. Impugned judgement cannot sustain and is set aside.
What is Continuous Service ???
The term ‗completer year of service‘ means continues service for one year.
An employee is said to have rendered continuous service, if:a) He has been in uninterrupted service, including service interrupted by sickness, accident, absents
from duty with or without leave, lay-off, strike, or lock-out or cessation of work not due to the
b)
c)
d)
a)
b)
c)
d)
employee‘s fault.
Note:- if an employee having been superannuated is a re-employed by the employer without any
break in service, he will be eligible for payment of service.
In case of mine or non seasonal establishment working for less than 6 days in week, he has actually
worked for atleast 190 days (in Mine) during the period of 12 months or 95 days, during the
preceding 6 months, he shall be deemed to have rendered continuous service for a period of one
year or 6 months, respectively.
In case of any other non-seasonal establishment he has actually worked for atleast 240 days during
the preceding 12 months or 120 days during the preceding 6 months, he shall be deemed to be
have rendered continuous service for a period of 1 year or 6 months, respectively.
In case of seasonal establishment, he has actually worked for at least 75% of the days on which the
establishment was is operation.
Notes:- for this purpose an employee shall be deemed to have actually worked on a day on which
:He has been laid off under an agreement or in accordance with standing orders;
He has been on leave with full wages, earned in the previous year;
He has been absent due to temporary, disablement cause by accident arising out of, and in the
course of, his employment, and
In the case of female, she has been on maternity leave not exceeding 12 weeks
Retrenched Employee entitled to get Gratuity:Retrenchment means termination of service and termination of service is covered by the definition
of retirement under the Act. Retrenchment of an employee falls within the scope of section 4(1) (b)
103
of the act under which gratuity is payable to an employee on his retirement. Therefore the
employee is entitled to get gratuity.
Benefits:1. Gratuity is payable on the basis of all emoluments earned by the employee, i.e. basic wages plus
Dearness Allowances / Special Allowances.
2. The quantum of gratuity is to be computed at the rate of 15days a wages (7days wages in case of
seasonal establishments) based on rate of wages last drawn by the employee concerned for every
completed year of service or a part thereof exceeding 6 month
3. The total amount of gratuity payable shall not exceed the prescribed limit i.e.
Rs.
10,00,000/- (after publication of notification)
4. In case where higher benefit of gratuity is available under any gratuity scheme of the Co. the
employee will entitled to higher benefit.
Calculation of Gratuity:
1. Gratuity = Monthly Salary / Wages Last Drawn x 15days x no. of yrs. of Service
26
2. Piece rated employee –
Daily wage is average (total wages drawn
in last 3 months preceding termination)
No. of Days Worked
x 15 Days x No. of Years of Service
3. Seasonal employee – based on 7days wages for each season.
4. Max. Gratuity Payable under the Act is Rs. 10,00,000/- (w.e.f. 24th May2010)
Q Since the payment of gratuity is not a regular feature, as such, we face difficulty in
calculation of gratuity. Kindly appraise the method of calculation of gratuity?
A Section 4 of the Payment of Gratuity act, 1972 deals with calculation of gratuity, The Explanation
to the Act Inserted by Act No. 22 of 1987 (w.e.f. 1-2-1987) provides that the completion of
continuous services of five years shall not be necessary where the termination of the employment
of the employee is due to death or disablement.
Example: Mr. Jatin Joined an establishment in January 1985 at Rs. 5,000/- per month. His wages
were raised to Rs. 15,000 per month in December, 2005. He retired on 31st December, 2005. The
amount of gratuity payable to him shall be calculated as under:
Mr. Jatin retired on: =31-12-2005
= -------------------------------X
15
Joined on : 01-01-1985
Total Service : 20 years
X
20
104
His last drawn monthly salary was Rs. 15,000.
The gratuity for the period of 20 years
= 15 days wages X 20 Monthly wages last drawn comprises of 26 days.
Hence the calculation will result as follows
=
15000
--------------------------------- X 15 (days per completed year of service) X 20 yrs.
26
=Rs. 173077.00 will be payable toward Gratuity to Mr. Jatin
1.
a)
b)
2.
1.
2.
3.
4.
Forfeiture of Gratuity:The employee may wholly or partially forfeit the gratuity payable to him if his services are
terminated on account:For his riotous or disorderly conduct or any other act of violence on his part or.
For any act which constitutes an offence involving moral turpitude.
Note:- If a workman who was dismissed for assaulting another workman, in a factory, is not
entitled to payment of any amount of gratuity.
The employee partly forfeits the gratuity payable to him if his services are terminated for any act,
wilful omission or negligence, causing any damage or loss to, or destruction of, property
belonging to the employer, to the extent of damage or loss caused.
Recovery of Gratuity:On account of his death: - If the employee has a family, he must nominate one or more members
of the family and none other. If the employee has no family, he can nominate any person or
persons of his choice. However, if the employee acquires a family after nominating any person or
persons of his choice, such nomination becomes invalid and the employee has to make a fresh
nomination of one or more members of his family.
The employee who is eligible for payment of gratuity and dies than his nominee or legal heir has
to send a written application to the employer in Form J (For Nominee) & Form K (For Legal Heir)
within 30 days from the date gratuity becomes payable.
If the employer does not take any action on the application, the employee has to apply to the
Controlling Authority in Form N within 90 days of the occurrence of the cause for the application
for issuing necessary direction to the employer for making payment of gratuity.
If gratuity is not paid by the employer Controlling Authority issues certificate to collector who
recovers the amount as arrears of land revenue together with compound interest.
Deduction of Gratuity – Not Permissible
The Gratuity of an employee can be forfeited or withheld only when he/she is dismissed for the
prescribed misconduct like willful omission or negligence causing any damage or loss to, or
destruction of, property belonging to the employer shall be forfeited to the extent of the damage or
loss so caused or if the services of such employee have been terminated for his riotous or
disorderly conduct or any other act of violence on his part, or if the services of such employee
have been terminated for any act which constitutes an offence involving moral turpitude. In one
105
case, the Calcutta High Court has also held that even if a workman gives an undertaking for
making deductions, the gratuity of an employee cannot be withheld.
Time Limit of Payment:The Employer should pay the gratuity within 30 days from the date it becomes payable or after
such date along with simple interest @10% p.a. (or as notified from Govt from time to time) on the
amount of Gratuity, unless the delay is on the part of payee.
Protection:Gratuity payable under the Act cannot be attached in execution of any decree or order of any civil,
revenue or criminal court.
Note: - If the employee is dead then the gratuity becomes payable to the heirs of the employee and the same
becomes attachable in the hands of the employer as the employer is legally bound to pay the said gratuity
to the legal heirs of the employee.
Liability for payment of gratuity to contact workers – whether principal employer or the
contractor
Q. In addition to regular employees, we are engaging contractors also. Some of the contractors‘
employees have completed five years‘ services. My query pertains as to whether the principal
employer or the contractor is liable for payment of gratuity to the employees of the contractor?
Ans:- In one case, the Kerala High Court has held that neither the Contract Labour (R&A) Act, 1970 nor
the Payment of Gratuity Act, 1972 provided that the principal employer can be held liable to pay
the gratuity to the workers engaged through the contract. However, the Madras High Court has
held that although liability for payment of gratuity is that of the contractor but by virtue of section
21(4) of the Contract Labour (R&A) Act, the principal employer can be directed to make payment
of gratuity to the employees of the contractor and recover the same from the contractor. In another
case, the Madras High Court has held that when the contractor, who engaged the workmen, does
not pay the amount of gratuity to them , the principal employer is liable to pay all dues including
gratuity to such workers as per provision of section 21(4) of Contract Labour (Regulation &
Abolition) Act, 1970.
Penal Provision:1. If any person, for the purpose of avoiding any payment to be made under the Act, knowingly makes or
causes to be made any false statement or false representation he would be punished with imprisonment up
to 6 months, or with fine up to Rs. 10000/- or, with both.
2. If any employer contravenes, or makes default in complying with any provisions of the act or any rule or
order made there under, he would be punished with imprisonment up to 1 year, or with fine up to Rs.
20000/- or with both.
Handy tips for Employer:1) It is advisable for the employer to obtain nomination from the employee in Form ‗F‘
2) Form G when employee acquired family later
3) And any change of nomination to be submitted in form H , in duplicate.
As it renders easy for the employer to disburse the gratuity amount. If he neglects to obtain
nomination and employee dies without nomination, it is likely that the family members of the
106
deceased employee may approach the employer with conflicting claims to the gratuity compelling
the employer to be dilemma and to resort to the legal processes.
Display of Abstract of the Act:Every employer must display an abstract of the act and the Rules made there under in English and
in the language understood by the majority of the employees at a conspicuous place at or near the
main entrance of the establishment.
Obligations of Employer:
1) Pay gratuity to the employees as required by the provisions of the Act and the rules framed there
under
2) Determine the gratuity as soon as it becomes payable, and give notice of the same to the employee
concerned and the controlling authority. In case of dispute regarding the amount determined, the
admitted amount of gratuity must be deposited with the Controlling Authority. If the latter
decides that any more gratuity is due to the employees, the same must be deposited with him.
3) Obtain an insurance in the prescribed manner for his liability for payment of gratuity under the
Act, or establish an approved gratuity fund in the prescribed manner.
Obligations of Employee:
1) An employee eligible for payment of gratuity under the Act, or any person authorised in writing
to act on his/her behalf, has to apply to the employer within such time and n such form as may be
prescribed under the rules for payment of gratuity as soon as it becomes due.
2) Every employee, after completing one year of service, has to nominate members of his / her family
who may receive gratuity in case of his / her death.
Recent Court Judgement:2) Service of Badli worker during the years in which he did not completed 240 days, held could not
be considered for Gratuity
The petitioner was serving with the respondent from 1979 onwards and he came to be retired from
04.07.2008. he was paid a sum of Rs. 72,074/- towards the amount of gratuity considering 20 years
of service and not considering his service in 1979 to 1983, 1991 and 1992 on the ground that in
those years he was serving as badli worker and did not completed 240 days. The petitioner
therefore approached the controlling authority and it held that the petitioner was entitled to a sum
of Rs. 94,599/- the amount of Rs. 72,074/-having been already paid, the respondent was held liable
to pay the remaining amount of Rs. 21,750/- with 10% interest.
Being aggrieved by the said decision of the Controlling Authority, the respondent preferred an
appeal to the Appellate authority. The appeal was allowed and it was held that the petitioner‘s
service rendered during the years from 1979 to 1983, 1991 and 1992 cannot be considered for the
purpose of calculating gratuity as in all those years he had not completed 240 days in a year as he
worked only as a Badli worker.
The petitioner challenged this order by filing a writ, petition in the High court contending that
daily wager service and break in service is to be considered for the purpose of calculating the
amount of gratuity. In support of his case, he relied upon the decision of a single judge in the case
107
of Ahmedabad Municipal Corporation v. Kantibhai 2010 II LLJ 640. But the single judge deciding
the present petition pointed out that the decision in the case of Mafatlal Fine Spg. & Mfg, Co. Ltd.
1997 I LLJ 475 rendered by the Division bench was not pointed out in that case. Hence the decision
-
in Ahmedabad Municipal Corpn‘s case was per incurium. The petition was therefore dismissed.
HC. Guj. LLJ II 2011 P. 145, Vasantbhai Bhudarbhai v. Manager, Arvind Intex
3) It is permissible in law to deduct loan amount from retrenchment compensation and gratuity?
The loan given to the employees is not a condition of service. The loan is ordinarily given on
personal relationship. Whereas, compensation payable on retrenchment and gratuity payable on
termination to eligible employees is a mandatory payment. Section 25 F of the act says that
payment of compensation is a condition precedent to retrenchment of workman, in other words
while dispensing with the service of the workman, the employer is bound to pay compensation.
This is a mandatory payment which cannot be adjusted. The fill payment prescribed under law
should be paid. Your attention is invited to section 25f (b), which clearly states that the workman
―has been paid at the time of retrenchment‖. Termination letter and the payment should be
simultaneous transaction.
Similarly, as far as gratuity is concerned, under section 4 of the gratuity act it clearly states that the
gratuity shall be payable to the employee. This is a statutory provision. The statutory direction
cannot be adjusted by the employer. He is bound to pay in full. But after payment, he has a right
to recover according to the legal procedure.
- 1991 – II CLR (Orissa) – 941 – Utkal Asbestos Ltd. v/s. T S Rao & Anr. 1964 – AIR (SC) – 1617 –
Bombay Union of journalists v/s. State of Bombay.
4) Payment of Gratuity Act Provided that an employee, after he completes five years, will be entitled
for gratuity. If he works for 4 years and 10 months?
It is correct that he must complete five years service in order to be eligible for gratuity. However,
in one case, the Madras High Court has held that an employee rendering continuous service for a
period of 240 days in a year, i.e. the fifth year will be deemed to have continued in service for one
year stipulated by section 2A of the Act. Accordingly, an employee who has put in his service for
10 months, 18 days for the fifth year subsequent to first 4 years should be deemed to have
completed continuous service of 5 years and is entitled to gratuity. The high court also
distinguished the earlier ruling of the Andhra Pradesh high court wherein it was held that an
employee who has worked for 4 years and 11 months and 10 days having not completed five years
of service will be not be entitled to gratuity.
Mettur Beardsell Ltd. (represented by uts Personnel Manager), Madras vs. Regional Labour
Commissioner (Central Authority under the Payment of Gratuity Act, 1972) Madras, 1998 LLR
1072 (Mad.HC).
5) Section 2(e) & (f), 1(b) (c) & 4 (A clerk working in a temple is entitled to payment of gratuity
since temple comes under the purview of establishment)
Respondent no.3 was an employee of the appellant temple. He served the temple as a manager for
several years and thereafter tendered his resignation which was accepted by the appellant temple.
It appears that respondent no.3 thereafter claimed amount of gratuity but the appellant temple
rejected that claim. Hence respondent no.3 raised an industrial dispute which was referred to the
Labour Court for adjudication. The Labour Court allowed the claim of the respondent no.3. Hence
the aggrieved appellant challenged the same by filing a writ petition in the High Court. But that
was dismissed. Hence the appellant filed the present writ appeal contending that a Hindu temple
cannot be considered as an establishment in order to grant gratuity payable under the provisions
108
of the Payment of Gratuity Act, 1972. According to the appellant temple is a place of worship and
it is neither a commercial nor non-commercial establishment as no trade or business is done by the
appellant.
The High court however dismissed the appeal and pointed out that the question whether a retired
employee of a Hindu temple is entitled to claim benefit of gratuity on attaining the age of
superannuation, is no more res integra in view of the Division Bench decision of the Orissa High
Court in the case of Administrator Shri Jagannath Temple, Puri v. Jagannath Padhi and Ors. 1992
(65) FLR 946. The Orissa High Court has ruled that the whole temple would come under the
purview of establishment and therefore clerk or manager who was working in a temple is entitled
for payment of gratuity. In view of this position the Division Bench dismissed the writ appeal.
-H. C. Karn. CLR III 2012 P.439, Management of Sri Venkatramana Temple & Shri Hale
Mariyamma Temple, Kapu v. Dy. Labour Commissioner & Ors.
Summary:The Payment of Gratuity Act applies to every factory, mine, oilfield, plantation, port, railway
company, and shop or establishment in which ten or more persons are employed. An employee is
a person (other than an apprentice) employed for wages in any capacity including administrative
and managerial. There is no wage ceiling for its applicability. Gratuity at the rate of 15 days wages
for every completed year of service, is payable to an employee on the termination of his
employment after he has rendered continuous service for not less than five years. The act
authorises the appropriate government to appoint any officer as a controlling authority for the
administration of the Act.
109
ABSTRACT OF THE PAYMENT OF GRATUITY ACT, 1972
FORM 'U'
1. Extent the Act.---The Act extends to the whole of India:
Provided that in so far as it relates to plantations a ports, it shall not extent to the State of Jammu
and Kashmir. Section 1(2).
2. To whom the Act Applies.--- The Act applies to (a) every factory, mine, oilfield, plantation, port
and railway company; (b) every shop or establishment within the meaning of any law for the time
being in force in relation to shops and establishments in a State, in which ten or mote persons are
employed, or were employed, on any day of the preceding twelve months; and (c) such other
establishments a class of establishments, in which, ten or more employees are employed, or were
employed, on any day of the preceding twelve months, as the Central Government may, by
notification,
specify
in
this
behalf.
Section 1(3).
3. Definitions----(a) "Appropriate Government" means (i) in relation to an establishment-(a) belonging to, or under the control of, the Central Government,
(b) having branches in more than one State,
(c) of a factory belonging to, or under the control of, the Central Government,
(d)
of a major port, mine, oilfield or railway company, the Central Government,
(ii) in any other case, the State Government. Section 2(a).
(b) "Completed year of service" means continuos service for one year. Section 2(b).
(c) "Continuos Service" means uninterrupted service and includes service which is interrupted by
sickness, accident, leave, lay-off, strike or a lock-out or cessation of work not due to any fault of
the employees concerned, whether such uninterrupted or interrupted service was rendered before
or after the commencement of this Act.
Explanation I.---In the cease of an employee who is not in uninterrupted service for one year, he
shall be deemed to be in continuous service if he has been actually employed by an employer
during the twelve months immediately preceding the year for not less than-(i) 190 days, if employed below the ground in a mine, or
(ii) 240 days, in any other case, except when he is employed in a seasonal establishment.
Explanation II,---- An employee of a establishment shall be deemed to be in continuos service if he
has actually worked for not less than seventy-five per cent of the number of days on which the
establishment was in operation during the year. Section 2(d)·
(d) ―Controlling authority‖ means an authority appointed by an appropriate Government under
Section 3. Section 2(d).
(e) "Family", in relation to an employee, shall be deemed to consist of--(i) in the case of a male employee, himself, his wife, his children, whether married or unmarried, his
dependent parents and the widow and children, of his predeceased son, if any,
(ii) in the case of a female employee, herself, her husband, her children, whether married or
unmarried, her dependent parents and the dependent parents of her husband and the widow and
children of her predeceased son, if any:
Provided that if a female employee, by a notice in writing to the Controlling Authority, expresses
to her desire to exclude her husband from her family, the husband and his dependent parents
shall no longer be deemed, for the purposes of this Act, to be included in the family of such female
employee unless the said notice is subsequently withdrawn by such female employee.
110
Explanation:-- Where the personal law of an employee permits the adoption by him of a child, any
child lawfully adopted by him shall be deemed to be included in his family, and where a child of
an employee has been adopted by another person and such adoption is under the personal law of
the person making such adoption, lawful, such child shall be deemed to be excluded from the
family
of
the
employee.
Section 2(h).
4. Nomination.---(1) Each employee, who has completed one year of service, after the
commencement of the Payment of Gratuity (Central) Rules, 1972 shall make within thirty days of
completion of one year of service, a nomination. Section 6(1) read with Rule 86(I1)
(2) If an employee has a family at the time of making a nomination, the nomination shall be made in
favour of one or more members of his family and any nomination made by such employee in
favour of a person who is not a member of his family shall be void. Section 6(3).
(3) If at the time of making a nomination, the employee has no family, the nomination can be made in
favour of any person or persons, but if the employee subsequently acquires a family, such
nomination shall forthwith become invalid and the employee shall make within 90 days fresh
nomination in favour of one or more members of his family. Section 6(4) read with Rule 6(3).
(4) A nomination or a fresh nomination or a notice of modification of nomination shall be signed by
the employee or, if illiterate, shall bear his thumb-impression in the presence of two witnesses,
who shall also sign a declaration to that effect in the nomination, fresh nomination or notice of
modification of nomination as the case may be. Rule 6(5).
(5) A nomination may, subject to the provisions of sub-sections (3) and (4) of Section 6, be modified by
an employee any time after giving to his employer a written notice of his intention to do so.
Section 6(5).
(6) A nomination or fresh nomination or notice of modification of nomination shall take effect from
the date of receipt of the same by the employer. Rule 6(6).
5. Application for gratuity.---(1) An employee who is eligible for payment of gratuity under the Act,
or any person authorised, in writing, to act on his behalf, shall apply ordinarily within thirty days
from the date gratuity becomes payable:
Provided that where the date of superannuation or retirement of an employee is known, the
employee may apply to such employer before thirty days of the date of superannuation or
retirement. Rule 7(1).
(2) A nominee of an employee who is eligible for payment of gratuity shall apply, ordinarily
within thirty days from the date the gratuity became payable to him, to the employer. Rule 7(2).
(3) A legal heir of an employee who is eligible for payment of gratuity shall apply, ordinarily
within one year from the date the gratuity became payable to him, to the employer. Rule 7(3).
(4) An application for payment of gratuity filed after the expiry of the periods specified above
shall also be entertained by the employer if the applicant adduces a sufficient cause for the delay.
Rule 7(5).
6. Payment of gratuity.--(1) 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-(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease:
Provided that the completion of continuous service of five years shall not be necessary where the
termination of the employment of any employee is due to death or disablement.
Disablement means such disablement which incapacitates an employee for the work which he was
capable of performing before the accident or disease resulting in such disablement. Section 4(1).
111
(2) For every completed year of service or part thereof in excess of six months, the employer shall
pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last
drawn by the employee concerned:
Provided that in the case of a piece-rated employee, daily wages shall be computed on the average
of the total wages received by him for a period of three months immediately preceding the
termination of his employment, and, for this purpose, the wages paid for any overtime work shall
not be taken into account:
Provided further that in the case of an employee employed in a seasonal establishment, the
employer shall pay the gratuity at the rate of seven days' wages for each season. Section 4(2).
(1) The amount of gratuity payable to an employee shall not exceed twenty months wages. Section
4(3).
7. Forfeiture of gratuity.--(1) The gratuity of an employee, whose services have been terminated for
any act, wilful omission or negligence causing any damage or loss to, or destruction of, property
belonging to the employer, shall be forfeited to the extent of the damage or loss so caused.
(2) The gratuity payable to an employee shall wholly be forfeited-(a) If the services of such employee have been terminated for his riotous or disorder conduct or of any
other act of violence on his part, or
(b) If the services of such employee have been terminated for any act which constitutes an offence
involving moral turpitude, provided that such offence is committed by him in the course of his
employment. Section 4(6).
8:
Notice of opening, change or closure of the establishment.--(1) A notice shall be submitted by
the employer to the controlling authority of the area within thirty days of any change in the name,
address, employer or nature of business. Rule 3(2).
(2) Where an employer intends to close down the business he shall submit a notice to the
controlling authority of the area at least sixty days before the intended closure. Rule 3(3).
9. Application to Controlling Authority for direction: If an employer--(i) refuses to accept a nomination or to entertain an application for payment of gratuity, or
(ii) issues a notice either specifying an amount of gratuity which is considered by the applicant less
than what is payable or rejecting eligibility to payment of gratuity, or
(iii)
having received an application for payment of gratuity, fails to issue notice within fifteen days;
the claimant employee, nominee, or legal heir, as the case may be, may within ninety days of the
occurrence of the occurrence of the cause for the application, apply to the controlling authority for
issuing a direction under sub-section (4) of Section 7 with as many extra copies as are the opposite
party:
Provided that the controlling authority may accept any application on sufficient cause being
shown by the applicant, after the expiry of the period of ninety days. Rule 10.
10.
Appeal:- Any person aggrieved by an order of the controlling authority may, within sixty days
from the date of the receipt of the order, prefer an appeal to the Regional Labour Commissioner
(Central) of the area, who has been appointed as the appellate authority by the Central
Government:
Provided that the appellate authority may, if it is satisfied that the appellant was prevented by
sufficient cause from preferring the appeal within the said period of sixty days, extend the said
period by a further period of sixty days. Section 7 (7).
11 Machinery for enforcement of the Act or Rules in Central sphere:---All Assistant Labour
Commissioners (Central) have been appointed as Controlling Authorities and all the Regional
Labour Commissioners (Central) as Appellate Authorities.
112
12. Powers of the Controlling Authority:--- The Controlling Authority for the purpose of conducting
an inquiry as to the amount of gratuity payable to an employee or as to the admissibility of any
claim of, or in relation to, an employee for payment of gratuity, or as to the person entitled to
receive the gratuity, shall have the same powers as are vested in a court, under the Code of Civil
Procedure, 1908, in respect of the following matters, namely--(a) Enforcing the attendance of any person or examining him on oath;
(b) Requiring the discovery and production of documents;
(c) Receiving evidence on affidavits; and
(d) Issuing commissions for the examination of witnesses. Section 7(5).
13. Recovery of gratuity.--If the amount of gratuity payable is not paid by the employer, within the
prescribed time to the person entitled thereto, the controlling authority shall, on an application
made to it in this behalf by the aggrieved person, issue a certificate for that amount to the
Collector, who shall recover the same, together with compound interest thereon at the rate of nine
per cent per annum, from the date of expiry of the prescribed time, as arrears of land revenue and
pay
the
same
to
the
person
entitled
thereto.
Section 8.
14.
Protection of gratuity: No gratuity payable under the Payment of Gratuity Act and the rules
made thereunder shall be liable to attachment in execution of any decree or order of any civil,
revenue or criminal court. Section 13.
15.
Penalties for offences.-(1) Whoever, for the purpose of avoiding any payment to be made by
himself or of enabling any other persons to avoid such payment, knowingly makes or causes to be
made any false statement or false representation, shall be punishable with imprisonment for a
term which may extend to six months, or with fine which may extend to one thousand rupees, or
with both. Section 9(1).
(2) An employer who contravenes, or makes default in complying with, any of the provisions of
the Act or any rule or order made thereunder shall be punishable with imprisonment for a term
which may extend to one year, or with fine which may extend to one thousand rupees, or with
both:
Provided that if the offence relates to non-payment of any gratuity payable under the Payment of
Gratuity Act, the employer shall be punishable with imprisonment for a term which shall not be
less than three months unless the court trying the offence for reasons to be recorded by it in
writing, is of opinion that a lesser term of imprisonment or the imposition of a fine would meet the
ends of justice. Section 9(2).
16. Display of Notice: The employer shall display conspicuously a notice at or near the main entrance
of the establishment in bold letters in English and in the language understood by the majority of
the employees specifying the name of the Officer with designation authorised by the employer to
receive on his behalf notices under the Payment of Gratuity Act or the rules made thereunder.
Rule 4.
17. Display of Abstract of the Act and Rules: The employer shall display an abstract of the Payment
of Gratuity Act and the rules made thereunder in English and in the language understood by the
majority of the employees at a conspicuous place at or near the main entrance of the establishment.
Rule 20.
113
FORM ‘A’
[See sub-rule (1) of Rule 3]
Notice of Opening
1.
2.
3.
4.
5.
6.
7.
8.
9.
(a)
(b)
(c)
Name and address of the Establishment
Name and designation of the Employer
Number of Persons employed
Maximum number of persons employed on any day during the preceding twelve months with date
Number of Employees covered by the Act
Nature of Industry
Whether Seasonal
Date of opening
Details of Head office/branches:
Name and address of Head office
Number of employees
Name and address of other branches in India.
1.
2.
3.
I verify that the information furnished above is true to the best of my knowledge and belief.
Place.....
Signature of the Employer
With name and designation.
114
FORM 'F'
See sub-rule (1) of Rule 6
Nomination
To,
(Give here name or description of the establishment with full address)
I, Shri/Shrimati/Kumari
(Name in full here)
whose particulars are given in the statement below, hereby nominate the person(s) mentioned below to receive the gratuity pay able
after my death as also the gratuity standing to my credit in the event of my death before that amount has become payable, or
having become payable has not been paid and direct that the said amount of gratuity shall be paid in proportion indicated aga inst
the name(s) of the nominee(s).
2. I hereby certify that the person(s) mentioned is/are a member(s) of my family within the meaning of clause
(h) of Section 2 of the Payment of Gratuity Act, 1972.
3. I hereby declare that I have no family within the meaning of clause (h) of Section 2 of the said Act.
4
(a) My father/mother/parents is/are not dependent on me.
(b) My husband's father/mother/parents is/are not dependent on my husband.
5. I have excluded my husband from my family by a notice dated : to the controlling authority in terms of the
proviso to clause (h) of Section 2 of the said Act.
6. Nomination made herein invalidates my previous nomination.
Nominee(s)
Name in full with full
Relationship with
Age of
Proportion by which
address of nominee(s)
the employee
nominee
the gratuity will be
shared
(1)
(2)
(3)
(4)
1.
2.
3.
So
on.
Statement
1.
2.
3.
4.
5.
6.
7.
Name of employee in full
Sex
Religion
Whether unmarried/married/widow/widower
Department/Branch/Section where employed
Post held with Ticket No. or Serial No., if any
Date of appointment
115
8. Permanent address:
Village
Post Office
Thana
District
Sub-division
State
Place:
Signature/Thumb-impression of the
Employee
Date:
Declaration by Witnesses
Nomination signed/thumb-impressed before me
Name in full and full address of witnesses.
Signature of Witnesses.
1.
1.
2.
2.
Place:
Date:
Certificate by the Employer
Certified that the particulars of the above nomination have been verified and recorded in this establishment.
Employer's Reference No., if any
Signature of the employer/Officer authorised
Designation
Date:
Name and address of the establishment or
rubber stamp thereof.
Acknowledgement by the Employee
Received the duplicate copy of nomination in Form 'F' filed by me and duly certified by the employer.
Date:
Signature of the Employee
Note.—Strike out the words/paragraphs not applicable.
116
Maharashtra Profession Tax
Act, 1975
Short title, extent and commencement:(1) This Act maybe called the Maharashtra State Tax on Professions, Trades, Callings and
Employments Act, 1975.
(2) It extends to the whole of the State of Maharashtra.
(3) It shall be deemed to have come into force on the 1st day of April 1975.
2. Definitions.—
In this Act, unless the context otherwise requires,-(a)
"Commissioner" means the Commissioner of Profession Tax appointed under section 12, and
includes an Additional Commissioner of Profession Tax (if any) appointed under that
section;
(b)
"Corporation area" means an area within the limits of a municipal corporation constituted
under the Bombay Municipal Corporation Act, the Bombay Provincial Municipal
Corporations Act, 1949 or the City of Nagpur Corporation Act, 1958;
(ba) "Employee" means a person employed on salary or wages,
and includes--
(i)
A Government servant receiving pay from the revenues of the Central Government or any
State Government or the Railway Fund.
(ii)
A person in the service of a body, whether incorporated or not, which is owned or controlled
by the Central Government or any State Government, where the body operates in any part of
the State, even though its headquarters may be outside the State;
(iii)
A person engaged in any employment of an employer, not covered by items (i) and (ii) above;
(c)
"employer" in relation to an employee earning any salary or wages on regular basis under
him, means the person or the officer who is responsible for disbursement of such salary or
wages and includes the head of the office of any establishment as well as the manager or
agent of the employer;
(ca) "engaged", in relation to any profession, trade, calling or employment means occupied fully or
otherwise in such profession, trade, calling or employment, whether any pecuniary benefit or
benefit of any nature whatsoever, actually accrues or not to a person from such occupation.
(d)
"month" means a month reckoned according to the British calendar;
(e)
"person" means any person who is engaged actively or otherwise in any profession, trade,
calling or employment in the State of Maharashtra, and includes a Hindu undivided family,
firm, company corporation or other corporate body, any society, club or association, so
engaged, but does not include any person who earns wages on a casual basis;
(f)
―Prescribed‖ means prescribed by the rules made under this Act;
(g)
―Profession tax‖ or ―tax‖ means the tax on professions, trades, callings and employments
levied under this Act;
117
(h)
"salary" or "wage" includes pay or wages, dearness allowance and all other remunerations
received by any person on regular basis, whether payable in cash or kind, and also includes
perquisites and profits in lieu of salary, as defined in section 17 of the Income-tax Act, 1961,
but does not include bonus in any form, and on any account or gratuity;
(i)
(j)
"Schedule" means a Schedule appended to this Act;
"Tribunal" means the Maharashtra Sales Tax Tribunal constituted under section 21 of the
Bombay Sales Tax Act, 1959, and discharging the functions of the Tribunal assigned to it by
or under this Act;
(k)
"year" means the financial year.
3. Leavy and Charge of Tax :(1) Subject to the provisions of article 276 of the constitution of India and of this Act, there shall
be levied and collected a tax on professions, trades, callings and employments for the benefit
of the State.
(2) Every person excluding firms (whether registered under the Indian Partnership Act, 1932, or
not) and Hindu Undivided family engaged actively or otherwise in any profession, trade
callings or employment and falling under one or the other of the classes mentioned in the
second column of Schedule I shall be liable to pay to the State Government the tax at the rate
mentioned against the class of such persons in the third column of the said Schedule;
Provided that, the tax so payable in respect of any one person shall not exceed five thousand
rupees in any year:
Provided also that, a person who is liable to pay tax has remained un-enrolled; then, his
liability to pay tax under this section for the periods for which he has remained so unenrolled shall not exceed eight years from the end of the year immediately preceding the year
in which he has obtained the enrolment certificate or the year in which the proceeding for
enrolment is initiated against him, whichever is earlier.
4. Employer's liability to deduct and pay tax on behalf of employees:The tax payable under this Act, by any person earning a salary or wage, shall be deducted by
his employer from the salary or wage payable to such person, before such salary or wage is
paid to him, and such employer shall, irrespective of whether such deduction has been made
or not, when the salary or wage is paid to such persons, be liable to pay tax on behalf of all
such persons:
Provided that, if the employer is an officer of Government the State Government may,
notwithstanding anything contained in this. Act; prescribe by rules the manner in which such
employer shall discharge the said liability:
Provided further that, where any person earning a salary or wage:a. Is also covered by one or more entries other than entry 1 in Schedule I and the rate of tax
under any such other entry is more than the rate of tax under entry 1 in that Schedule, or
b. Is simultaneously engaged in employment of more than one employer, and such person
furnishes to his employer or employers a certificate in the prescribed form declaring inter alia,
that he Shall get enrolled under sub-section (2) of section 5 and pay the tax himself, than the
118
employer or employers of such person shall not deduct the tax from the salary or wage
payable to such person and such employer or employers, as the case may be, shall not be
liable to pay tax on behalf of such person.
Schedule – I (see Section 3)
Schedule of rates of tax on professions, Trades, Callings & Employments.
With Effect From 01 July 2014
Class of Persons
Salary and wage earners, such persons whose monthly salaries or
wages are:
Rate of Tax
From 01-07-2014
Up to Rs. 7500/From Rs. 7501/From Rs. 10001/-
To
&
Rs. 10000/Above
Nil
Rs. 175/-pm
Rs. 2,500/-p.a.*
*to be paid in following manner:a) Rs. 200/- per month except in the month of February.
b) Rs. 300/- for the month of February
Note: Salary / Wages limit proposed upto Rs. 7500/- pm, on which P.Tax will not be payable
which has been proposed by State Government of Maharshtra (Approval of the same is
awaited)
RETURNS:
Liability to file return and payment of tax for employer (From 1-4-2011) onwards
Tax Liability
Periodicity
Months of salary to be covered Due Date
Less than ` 50,000 in
previous year
Annual
March of the previous year and 31st March
April to February of the current
year
` 50,000/- or more in Monthly
previous year
Salary of previous month
End of the month
for which return
is filed
In case of first year of Monthly
registration
Salary of previous month
End of the month
for which return
is filed
Note: With effect from 1st February, 2011, an assesse whose tax liability during the previous
year is ` 20,000 or more is required to upload his return in electronic mode. (Refer Notification
No. VAT/AMD-1010/IB/PT/ADM-6 dated 26-11-2010). Such assessee can make payment of tax in
Form MTR-6.
119
Exemptions from Payment of Profession Tax (Sec. 27A)
1. The Badli workers in the textile Industry
2. Any person suffering from a permanent physical disability (including blindness) which has the
effect of reducing considerably such individual‘s capacity for normal work or engaging in a
gainful employment or occupations.
3. Parents or Guardian of any person who is suffering from mental retardation specified in the rules
made in this behalf, which is certified by a psychiatrist working in a Government Hospital
4. The Person who have completed the age of Sixty Five years.
5. Parents or Guardians of a child suffering from a physical disability as specified in para2.
Payment of Interest for Delay Payment:The employer, who has not paid the tax, is liable to pay simple Interest at 1.25% of the amount of
the tax payable for each month for the period for which the tax remains unpaid.
Penalty for non-payment of tax:—
If an enrolled person or a registered employer fails, without reasonable cause, to make
payment of any amount of tax, within the required time or date as specified in the notice of
demand, the prescribed authority may, after giving him a reasonable opportunity of being heard,
impose upon him a penalty equal to ten per cent, of the amount of tax due.
Professional Tax Slabs of other States in India where
Professional Tax is Applicable:Salary Slab
Andhra Pradesh
Up to Rs.1 5000/. 15001/- to Rs. 20000/. 20001/- and Above
P. Tax P. M.
Nil.
Rs. 150/Rs. 200
Bihar
Up to Rs. 25000/Rs. 25001/- to Rs. 41667/Rs. 41668/- & Rs. 83333/Rs. 83333/- Above
Salary Slab
Nil
Rs.83/Rs.167/Rs.212/-
P. Tax P. M.
Kerala
Rs. 2000/- to Rs. 2999/Rs. 3000/- to Rs. 4999/Rs. 5000/- to Rs. 7499/Rs. 7500/- to Rs. 9999/Rs. 10000/- to Rs. 12499/Rs. 12500/- to Rs. 16666/Rs. 16667/- to Rs. 20833/Rs. 20834/- and above
Madhya Pradesh
Up to Rs. 12500/Rs. 12501/- to Rs. 15000/Rs. 15001/- & Above
## up to Feb. Rs. 212/-
Rs. 20/Rs. 30/Rs. 50/Rs. 75/Rs. 100/Rs. 125/Rs. 167.67/Rs. 208.34/-
Nil
Rs. 125/Rs. 208/-##
Salary Slab
Assam
P. Tax P. M.
Less than Rs.3500/Rs. 3500/- to Rs. 4999/Rs. 5000/- to Rs. 6999/Rs. 7000/- to Rs. 8999/Rs. 9000 & Above
Nil
Rs.30/Rs.75/Rs.110/Rs.208/-
Gujarat
Up to Rs. 5999/Rs. 6000/- to Rs. 8999/Rs. 9000/- to Rs. 11999/Rs. 12000/- & Above
Nil
Rs. 80/Rs. 150/Rs. 200/-
Salary Slab
Maharashtra
Upto Rs. 5000/Rs. 5001 to Rs. 10000/Rs. 10001/- & Above
** Rs. 300/- in month of
February
Meghalaya
Up to Rs. 50000/Rs. 50001/- to Rs. 75000/Rs. 75001/- to Rs. 100000/Rs. 100001/- to Rs. 150000/Rs. 150001/- to Rs. 200000/Rs. 200001/- to Rs. 250000/Rs. 250001/- to Rs. 300000/Rs. 300001/- to Rs. 350000/Rs. 350001/- to Rs. 400000/Rs. 400001/- to Rs. 450000/Rs. 450001/- to Rs. 500000/Rs. 500001/- & Above.
P. Tax P. M.
Nil
Rs. 175/Rs. 200/-**
Nil
Rs. 200/-p.a.
Rs. 300/- p.a.
Rs. 500/- p.a.
Rs. 750/- p.a.
Rs. 1000/- p.a.
Rs. 1250/- p.a.
Rs. 1500/- p.a.
Rs. 1800/- p.a.
Rs. 2100/- p.a.
Rs. 2400/- p.a.
Rs. 2500/- p.a.
Orissa
Up to Rs. 13333/Rs. 13334/- to Rs. 25000/Rs. 25001/- & Above
In Feb Rs.300/-
Nil
Rs. 125/- p.m
Rs. 200/-p.m
Tamil Nadu
Pondicherry
Rs. 50/- to Rs. 99/- Rs.
100/- to Rs. 199/- Rs.
200/- to Rs. 299/- Rs.
300/- to Rs. 499/- Rs.
500/- to Rs. 799/- Rs.
800/- to Rs. 999/- Rs.
1000/- to Rs. 1499/- Rs.
1500/- to Rs. 1999/- Rs.
2000/- to Rs. 2499/- Rs.
2500/- & Above
Rs. 1/Rs. 1/Rs. 1/Rs. 1/Rs. 2.00/Rs. 5.00/Rs. 9.00/Rs. 13.00/Rs. 17.00/Rs. 21.00/-
Tamil Nadu (Salem)
(Chennai City/ Padi)
Up to Rs. 3500/Rs. 3501/- to 5000/Rs. 5001/- to 7500/Rs. 7501/- to Rs. 10000/Rs. 10001/- to Rs. 12500/Rs. 12501/- & Above
Tamil Nadu (Madurai)
Up to Rs. 3500/Rs. 3501/- to 5000/Rs. 5001/- to 7500/Rs. 7501/- to Rs. 10000/Rs. 10001/- to Rs. 12500/Rs. 12501/- & Above
Nil
Rs. 17/Rs. 40/Rs. 85/Rs. 127/Rs. 183/-
Up to Rs. 3500/Rs. 3501/- to 5000/Rs. 5001/- to 7500/Rs. 7501/- to Rs. 10000/Rs. 10001/- to Rs. 12500/Rs. 12501/- & Above
Nil
Rs. 17/Rs. 40/Rs. 85/Rs. 127/Rs. 169/-
Tripura
Nil
Rs. 17/Rs. 41/Rs. 82/Rs. 123/Rs. 163/-
Salary Slab
West Bengal
P. Tax P. M.
Up to Rs. 7000/Rs. 7001/- to Rs. 8000/Rs. 8001/- to Rs. 9000/Rs. 9001/- to Rs. 15000/Rs. 15001/- to Rs. 25000/Rs. 25001/- to Rs. 40000/Rs. 40001/- & Above.
Nil
Rs. 50/Rs. 90/Rs. 110/Rs. 130/Rs. 150/Rs. 200/-
Up to Rs. 2500/Rs. 2501/- to Rs. 3500/Rs. 3501/- to Rs. 4500/Rs. 4501/- to Rs. 6500/Rs. 6501/- to Rs. 10000/Rs. 10001/- & Above
Nil
Rs. 55/Rs. 85/Rs. 100/Rs. 140/Rs. 180/-
States where P. Tax Not Applicable
DELHI
GOA
HARYANA
HIMACHAL PRADESH
PUNJAB
RAJASTHAN
UTTARNCHAL
UTTAR PRADESH
JHARKHAND
CHATTISGARH
STATUTORY COMPLIANCE: VARIOUS RETURNS: A GUIDELINE
In General:- I am in the opinion that a making related compliances under Labour Law and the
Rules Framed there under is a combustion Job for those who are engaged in personal / H. R.
Department.
Followings are the guide lines for them so as to make the accessible for the procedure provided
under the status.
MONTH WISE CHECKLIST FOR
MON
TH &
LAST
DAT
NAME OF THE
STATUTE
FORM
NAME OF RETURN /
COMPLIANCE
TO BE SENT TO
E
JANUARY
15
15
30
30
31
31
31
THE EMPLOYMENT
EXCHANGE (CNV)
ER-I
ACT, 1959
THE MUMBAI
LABOUR WELFARE
A-I
FUND ACT, 1953
THE PROFESSION TAX FORM
ACT, 1975
III
THE CONTACT
LABOUR (R & A)
XXIV
ACT. 1970
THE FACTORIES ACT,
27
1948
THE MATERNITY
11
BENEFIT ACT, 1961
THE (NATIONAL &
FESTIVAL HOLIDAYS)
V
ACT, 1963
QUARTERLY RETURN
STATEMENT OF
CONTRIBUTION OF DEC.
ALONG WITH CHEQUE
MONTHLY RETURN A/W
CHEQUE
HALF YEARLY RETURN BY
CONTRACTOR
ASST. EMPLOYMENT OFFICER,
CHURCHGATE
WELFARE COMMISSIONER,
ELPHINSTONE ROAD,
ANY SCHEDULE BANK
ASST. LABOUR COMMISSIONER
TARDEO
ANNUAL RETURN
DIRECTORATE OF INDUSTRIAL
SAFETY & HEALTH, TARDEO
ANNUAL RETURN
DIRECTORATE OF INDUSTRIAL
ANNUAL RETURN
SAFETY & HEALTH, TARDEO /
LABOUR OFFICER, TARDEO
FEBRUARY
1
15
15
28
THE MINIMUM
WAGES ACT, 1948
THE CONTRACT
LABOUR (R & A)
ACT, 1970
THE PAYMENT OF
WAGES ACT, 1936
THE PROFESSION TAX
ACT, 1975
III
XXI
ANNUAL RETURN
LABOUR INSPECTOR, TARDEO
ANNUAL RETURN- BY
ASST, LABOUR COMMISSIONER,
EMPLOYER
TARDEO
ANNUAL RETURN
SAFETY & HEALTH, TARDEO /
DIRECTORATE OF INDUSTRIAL
V
LABOUR OFFICER, TARDEO
FORM
III
MONTHLY RETURN A/W
CHEQUE
ANY SCHEDULE BANK
MARCH
30
THE PROFESSION TAX
ACT, 1975
FORM
III
MONTHLY RETURN A/W
CHEQUE
ANY SCHEDULE BANK
APRIL
15
THE APPRENTICESHIP
ACT, 1961
APP2
HALF YEARLY RETURN
ER- 1
QUARTERLY RETURN
FORM
III
MONTHLY RETURN A/W
MARCH ENDING
THE EMPLOYMENT
15
EXCHANGE (CNV)
ACT, 1956
30
THE PROFESSION TAX
ACT, 1975
THE EMPLOYEES
30
PROVIDENT FUND
ACT, 1952
3A &
6A
CHEQUE
ANNUAL INDIVIDUAL
RETURNS & RETURN OF
CONTRIBUTIONS
DY. APPRENTICESHIP ADVISOR SION
ASST. EMPLOYMENT OFFICER,
CHURCHGATE
ANY SCHEDULE BANK
REGIONAL PF COMMISSIONER
BANDRA/ MALAD/ THANE
MAY
12
THE EMPLOYEES
STATE INSURANCE
SUMMARY OF
6
ACT, 1948
30
30
THE PROFESSION TAX
ACT, 1975
THE PROFESSION TAX
ACT, 1975
CONTRIBUTION IN
QUADRUPLICATE A/ W
RESPECTIVE LOCAL OFFICE.
CHALLANS
FORM
III
FORM
III
MONTHLY RETURN A/W
CHEQUE
JUNE
MONTHLY RETURN A/W
CHEQUE
ANY SCHEDULE BANK
ANY SCHEDULE BANK
JULY
THE EMPLOYMENT
15
EXCHANGE (CNV)
ER- I
QUARTERLY RETURN
28
HALF YEARLY RETURN
ACT, 1959
15
15
THE FACTORIES ACT,
1948
THE MUMBAI
LABOUR WELFARE
A -I
FUND ACT, 1953
30
THE PROFESSION TAX
ACT, 1975
FORM
III
THE CONTRACT
30
LABOUR (R & A)
XIV
ACT, 1970
STATEMENT OF
CONTRIBUTION OF JUNE
MONTHLY RETURN A/W
CHEQUE
ASST. EMPLOYMENT OFFICER,
CHURCHGATE
DIRECTORATE OF INDUSTRIAL
SAFETY & HEALTH, TARDEO
WELFARE COMMISSIONER,
ELPHINSTONE ROAD,
ANY SCHEDULE BANK
HALF YEARLY RETURN BY
ASST, LABOUR COMMISSIONER,
CONTRACTOR
TARDEO
AUGUST
30
30
THE PROFESSION TAX
ACT, 1975
THE PROFESSION TAX
ACT, 1975
FORM
III
FORM
III
MONTHLY RETURN A/W
CHEQUE
SEPTEMBER
MONTHLY RETURN A/W
CHEQUE
ANY SCHEDULE BANK
ANY SCHEDULE BANK
OCTOBER
DY. APPRENTICESHIP ADVISOR SION
15
THE APPRENTICESHIP
ACT, 1961
APP2
HALF-YEARLY RETURN
SEPT. ENDING
THE EMPLOYMENT
15
EXCHANGE (CNV)
ER- 1
QUARTERLY RETURN
FORM
III
MONTHLY RETURN A/W
ASST. EMPLOYMENT OFFICER,
CHURCHGATE
ACT, 1956
30
30
THE PROFESSION TAX
ACT, 1975
THE FACTORIES ACT,
1948
3
THE CONTRACT
31
LABOUR (R & A)
VII
ACT, 1970
ANY SCHEDULE BANK
CHEQUE
RENEWAL OF LICENCE
DIRECTORATE OF INDUSTRIAL
SAFETY & HEALTH, TARDEO
APPLICATION FOR
ASST, LABOUR COMMISSIONER,
RENEWAL OF LICENCE
TARDEO
APPLICATION FOR
NOVEMBER
12
THE EMPLOYEES
STATE INSURANCE
SUMMARY OF
6
ACT, 1948
30
30
THE PROFESSION TAX
ACT, 1975
THE (NATIONAL &
FESTIVAL HOLIDAYS)
ACT, 1963
30
FORM
III
I&
IV
30
MONTHLY RETURN A/W
APPLICATIONS FOR
WITH LIST
DECEMBER
RENEWAL OF
REGISTRATION
THE PROFESSION TAX
FORM
III
MONTHLY RETURN A/W
D
ANNUAL RETURN
BONUS ACT, 1965
LABOUR OFFICER, TARDEO
APPROVAL OF HOLIDAYS
B
THE PAYMENT OF
ANY SCHEDULE BANK
CHEQUE
& ESTABLISHMENTS
ACT, 1948
ACT, 1975
RESPECTIVE LOCAL OFFICE.
CHALLANS
THE BOMBAY SHOPS
15
CONTRIBUTION IN
QUADRUPLICATE A/ W
RESPECTIVE MUNICIPAL WARD
OFFICE
CERTIFICATE
ANY SCHEDULE BANK
CHEQUE
ASST, LABOUR COMMISSIONER,
SUBMISSION OF VARIOUS RETURNS
TARDEO
Useful Website:-
Important note – Disclaimer
This material has been prepared by the faculty based on his understanding of law and factual
knowledge/awareness. This material is for reference only for the topics covered in the program. There
may be other provisions of laws governing the specific areas and there may be constant updates in
legal provisions from time to time. Though care has been taken to capture the factual contents of the
material, one need to cross verify the same before placing reliance on the same. Views expressed
herein should neither be construed as exhaustive/complete information nor legal opinion on any
matter. The legal authorities may take different or adverse view. Before taking any decision, you
should first contact your legal advisor for factual correctness and specific applicability to your
situation. The faculty will not be responsible for any damages and/or loss suffered of any kind directly
or indirectly for reliance placed on any information or views expressed hereinabove
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Management Consultants on Labour Laws
Cell : 9867796988 / 9323235533 Email : rlsoni@gmail.com, Website : www.rlsconsulting.in
130