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SUMMARY OF VARIOUS LABOUR LAWS APPLICABLE IN INDIA

1. Industrial Disputes Act 1947

  • Purpose: Regulates the relationship between employers and employees and provides mechanisms for the investigation and settlement of industrial disputes.
  • Employee Threshold: Applicable to industrial establishments.
  • Salary Threshold: No specific salary threshold.
  • Returns Applicable and Periodicity: Returns related to settlement of disputes.
  • Contribution Amount/Rate: Not applicable.
  • Main Records to be Kept: Records of disputes, settlements, layoffs, retrenchments, and closures.
  • Key Provisions:
    • Definitions of industrial disputes and workmen.
    • Procedures for conciliation, arbitration, and adjudication.
    • Layoffs, retrenchment, and closure guidelines.
    • Formation and role of Works Committees and Industrial Tribunals.

2. Employees’ Provident Fund and Miscellaneous Provisions Act 1952

  • Purpose: Provides a provident fund, pension, and insurance benefits to employees.
  • Employee Threshold: Applicable to establishments employing 20 or more employees.
  • Salary Threshold: Monthly salary up to ₹15,000.
  • Returns Applicable and Periodicity: Monthly returns.
  • Contribution Amount/Rate: 12% of basic wages, dearness allowance, and retaining allowance.
  • Main Records to be Kept: PF challans, contribution cards, Form 9 (revised), and inspection book.
  • Key Provisions:
    • Establishment of the Employees’ Provident Fund (EPF) and Employees’ Pension Scheme (EPS).
    • Contribution rates by employees and employers.
    • Procedures for withdrawal and transfer of EPF.
    • Administrative and inspection mechanisms.

3. Employees’ State Insurance Act 1948

  • Purpose: Provides social security and health insurance to employees and their dependents.
  • Employee Threshold: Applicable to establishments employing 10 or more employees.
  • Salary Threshold: Monthly salary up to ₹21,000 (₹25,000 for persons with disability).
  • Returns Applicable and Periodicity: Monthly & Half-yearly returns in Form 5.
  • Contribution Amount/Rate: 3.25% by employer and 0.75% by employee of gross salary.
  • Main Records to be Kept: Contribution register, Form 6, accident book, and inspection book.
  • Key Provisions:
    • Coverage of employees earning up to a specified wage limit.
    • Benefits including medical, sickness, maternity, disablement, and dependent benefits.
    • Establishment and administration of the Employees’ State Insurance Corporation (ESIC).
    • Employer’s contribution to the ESI fund.

4. Payment of Bonus Act 1965

  • Purpose: Mandates the payment of a bonus to employees based on profits or productivity.
  • Employee Threshold: Applicable to establishments employing 20 or more employees.
  • Salary Threshold: Monthly salary up to ₹21,000.
  • Returns Applicable and Periodicity: Annual return in Form D.
  • Contribution Amount/Rate: Minimum 8.33% and maximum 20% of salary/wages.
  • Main Records to be Kept: Registers of bonus, Form A, B, and C.
  • Key Provisions:
    • Eligibility criteria for receiving bonuses.
    • Minimum and maximum bonus percentages.
    • Calculation of bonus based on allocable surplus and available surplus.
    • Payment timelines and dispute resolution.

5. Payment of Gratuity Act 1972

  • Purpose: Ensures the payment of gratuity to employees who have completed a minimum of five years of continuous service.
  • Employee Threshold: Applicable to establishments employing 10 or more employees.
  • Salary Threshold: No specific salary threshold.
  • Returns Applicable and Periodicity: Notice of opening, change, and closure in Form A, B, and C.
  • Contribution Amount/Rate: 15 days’ wages for each completed year of service.
  • Main Records to be Kept: Gratuity register, nomination forms, and payment records.
  • Key Provisions:
    • Applicability to establishments employing 10 or more employees.
    • Calculation formula for gratuity payment.
    • Conditions for forfeiture of gratuity.
    • Procedures for claiming gratuity and resolution of disputes.

6. Contract Labour (Regulation and Abolition) Act 1970

  • Purpose: Regulates the employment of contract labor and ensures certain conditions of work.
  • Employee Threshold: Applicable to establishments employing 20 or more contract workers.
  • Salary Threshold: No specific salary threshold.
  • Returns Applicable and Periodicity: Annual return in Form XXV.
  • Contribution Amount/Rate: Not applicable.
  • Main Records to be Kept: Registers of contractors, employment card, service certificate, and wage register.
  • Key Provisions:
    • Registration of establishments and licensing of contractors.
    • Provisions for the welfare and health of contract labor.
    • Prohibition of employment of contract labor in certain situations.
    • Mechanisms for resolving disputes and grievances.

7. Factories Act 1948

  • Purpose: Prescribes standards for the health, safety, and welfare of factory workers.
  • Employee Threshold: Applicable to factories employing 10 or more workers with power, or 20 or more without power.
  • Salary Threshold: No specific salary threshold.
  • Returns Applicable and Periodicity: Annual return in Form 27.
  • Contribution Amount/Rate: Not applicable.
  • Main Records to be Kept: Health and safety records, accident records, muster roll, and wage register.
  • Key Provisions:
    • Definitions of factory and worker.
    • Health measures including cleanliness, waste disposal, and ventilation.
    • Safety measures including machinery safety, hazardous processes, and fire safety.
    • Welfare measures including canteens, restrooms, and first aid.

8. Minimum Wages Act 1948

  • Purpose: Fixes and regulates minimum rates of wages that must be paid to skilled and unskilled labor.
  • Employee Threshold: No specific employee threshold.
  • Salary Threshold: Applicable to employees receiving minimum wages as specified by the government.
  • Returns Applicable and Periodicity: Annual return in Form III.
  • Contribution Amount/Rate: As prescribed by respective state governments.
  • Main Records to be Kept: Wage register, attendance register, and overtime register.
  • Key Provisions:
    • Criteria for fixing minimum wages.
    • Review and revision of minimum wage rates.
    • Payment of wages in cash or kind.
    • Compliance and enforcement mechanisms.

9. Maternity Benefit Act 1961

  • Purpose: Provides maternity benefits to women employees including maternity leave and medical benefits.
  • Employee Threshold: Applicable to establishments employing 10 or more employees.
  • Salary Threshold: No specific salary threshold.
  • Returns Applicable and Periodicity: Annual return in Form K.
  • Contribution Amount/Rate: Not applicable.
  • Main Records to be Kept: Maternity benefit register, leave records, and payment records.
  • Key Provisions:
    • Maternity leave duration and conditions.
    • Maternity benefit amount and payment procedures.
    • Protection from dismissal during maternity leave.
    • Provisions for nursing breaks and crèche facilities.

10. Equal Remuneration Act 1976

  • Purpose: Prohibits discrimination in wages on the basis of gender.
  • Employee Threshold: No specific employee threshold.
  • Salary Threshold: No specific salary threshold.
  • Returns Applicable and Periodicity: Annual return in Form D.
  • Contribution Amount/Rate: Not applicable.
  • Main Records to be Kept: Register of wages, register of employment, and inspection book.
  • Key Provisions:
    • Equal pay for equal work for men and women.
    • Prohibition of discrimination in recruitment and conditions of service.
    • Inspection and enforcement mechanisms.
    • Penalties for non-compliance.

11. Child Labour (Prohibition and Regulation) Act 1986

  • Purpose: Prohibits the employment of children in certain hazardous occupations and processes.
  • Employee Threshold: No specific employee threshold.
  • Salary Threshold: Not applicable.
  • Returns Applicable and Periodicity: Not applicable.
  • Contribution Amount/Rate: Not applicable.
  • Main Records to be Kept: Employment register, attendance register, and age certificate.
  • Key Provisions:
    • Prohibition of employment of children below 14 years in hazardous occupations.
    • Regulation of working conditions for children in non-hazardous jobs.
    • Penalties for employing child labor.
    • Rehabilitation and welfare measures for child labor.

12. Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act 1996

  • Purpose: Regulates the employment and conditions of service of building and construction workers.
  • Employee Threshold: Applicable to establishments employing 10 or more workers.
  • Salary Threshold: No specific salary threshold.
  • Returns Applicable and Periodicity: Monthly return in Form XIV.
  • Contribution Amount/Rate: 1% of the total cost of construction.
  • Main Records to be Kept: Register of beneficiaries, wage register, and health and safety records.
  • Key Provisions:
    • Registration of building workers as beneficiaries.
    • Welfare measures including health, safety, and welfare facilities.
    • Constitution of Welfare Boards.
    • Collection and utilization of cess for welfare activities.

13. Shops and Establishments Act (varies by state)

  • Purpose: Regulates working conditions, employment terms, and other aspects for shops, commercial establishments, and workplaces.
  • Employee Threshold: Varies by state.
  • Salary Threshold: No specific salary threshold.
  • Returns Applicable and Periodicity: Varies by state; typically annual return.
  • Contribution Amount/Rate: Not applicable.
  • Main Records to be Kept: Register of employment, wage register, and attendance register.
  • Key Provisions:
    • Registration and licensing of establishments.
    • Working hours, rest intervals, and overtime.
    • Leave policies including annual leave, sick leave, and casual leave.
    • Provisions for health, safety, and welfare of employees.

14. Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act 2013 (POSH Act)

  • Purpose: Protects women from sexual harassment at their place of work.
  • Employee Threshold: Applicable to all establishments.
  • Salary Threshold: No specific salary threshold.
  • Returns Applicable and Periodicity: Annual report to District Officer.
  • Contribution Amount/Rate: Not applicable.
  • Main Records to be Kept: Complaints register, inquiry reports, and action taken reports.
  • Key Provisions:
    • Definition of sexual harassment and coverage of all women employees.
    • Constitution of Internal Complaints Committee (ICC) at every office or branch with 10 or more employees.
    • Complaint mechanism and process for inquiry.
    • Interim relief during the pendency of the inquiry.
    • Action against false or malicious complaints.
    • Employer’s duties to provide a safe working environment and awareness programs.

15. New Labour Codes (recent reforms)

  • Code on Wages:
    • Purpose: Consolidates laws related to wages and bonus.
    • Employee Threshold: No specific threshold.
    • Salary Threshold: No specific threshold.
    • Returns Applicable and Periodicity: Annual return.
    • Contribution Amount/Rate: As prescribed.
    • Main Records to be Kept: Wage register, inspection book, and employment register.
    • Key Provisions:
      • Definitions of wages and components.
      • Payment of wages, deductions, and fines.
      • Minimum wages, overtime, and equal remuneration.
  • Industrial Relations Code:
    • Purpose: Combines laws related to industrial disputes and trade unions.
    • Employee Threshold: Varies by specific provisions.
    • Salary Threshold: No specific threshold.
    • Returns Applicable and Periodicity: Annual return.
    • Contribution Amount/Rate: Not applicable.
    • Main Records to be Kept: Dispute records, union registers, and conciliation proceedings.
    • Key Provisions:
      • Formation and registration of trade unions.
      • Procedures for handling industrial disputes.
      • Provisions for strikes, lockouts, and layoffs.
  • Social Security Code:
    • Purpose: Integrates laws related to social security and benefits like provident fund, insurance, and gratuity.
    • Employee Threshold: Varies by specific provisions.
    • Salary Threshold: Varies by specific provisions.
    • Returns Applicable and Periodicity: Annual return.
    • Contribution Amount/Rate: Varies by specific provisions.
    • Main Records to be Kept: Contribution records, beneficiary registers, and claim records.
    • Key Provisions:
      • Social security schemes for employees.
      • Benefits like maternity, disablement, and dependent benefits.
      • Procedures for claiming benefits and resolving disputes.
  • Occupational Safety, Health, and Working Conditions Code:
    • Purpose: Merges laws related to safety, health, and working conditions.
    • Employee Threshold: Varies by specific provisions.
    • Salary Threshold: No specific threshold.
    • Returns Applicable and Periodicity: Annual return.
    • Contribution Amount/Rate: Not applicable.
    • Main Records to be Kept: Safety records, health records, and welfare records.
    • Key Provisions:
      • Standards for health, safety, and welfare of workers.
      • Provisions for hazardous processes and machinery safety.
      • Guidelines for working hours, leave, and overtime.

16. The Trade Unions Act 1926

  • Purpose: Provides for the registration and protection of trade unions.
  • Employee Threshold: No specific employee threshold.
  • Salary Threshold: No specific salary threshold.
  • Returns Applicable and Periodicity: Annual return to the Registrar of Trade Unions.
  • Contribution Amount/Rate: Not applicable.
  • Main Records to be Kept: Register of members, minutes of meetings, accounts of general funds.
  • Key Provisions:
    • Procedure for registration of trade unions.
    • Rights and liabilities of registered trade unions.
    • Regulations for trade union funds and audit.

17. The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act 1979

  • Purpose: Regulates the employment and conditions of service of inter-state migrant workers.
  • Employee Threshold: Applicable to establishments employing 5 or more inter-state migrant workers.
  • Salary Threshold: No specific salary threshold.
  • Returns Applicable and Periodicity: Annual return in Form XXV.
  • Contribution Amount/Rate: Not applicable.
  • Main Records to be Kept: Register of migrant workmen, wage register, and attendance register.
  • Key Provisions:
    • Registration of establishments and licensing of contractors.
    • Provisions for displacement allowance, journey allowance, and other facilities.
    • Regulation of employment, wages, and working conditions.

18. The Bonded Labour System (Abolition) Act 1976

  • Purpose: Abolishes bonded labor system and prevents the economic and physical exploitation of weaker sections of the people.
  • Employee Threshold: No specific employee threshold.
  • Salary Threshold: Not applicable.
  • Returns Applicable and Periodicity: Not applicable.
  • Contribution Amount/Rate: Not applicable.
  • Main Records to be Kept: Records of identification, release, and rehabilitation of bonded laborers.
  • Key Provisions:
    • Abolition of bonded labor system.
    • Identification, release, and rehabilitation of bonded laborers.
    • Penalties for enforcing bonded labor.

19. The Employment Exchange (Compulsory Notification of Vacancies) Act 1959

  • Purpose: Provides for compulsory notification of vacancies to employment exchanges.
  • Employee Threshold: Applicable to establishments employing 25 or more employees.
  • Salary Threshold: No specific salary threshold.
  • Returns Applicable and Periodicity: Quarterly return in Form ER-I and biennial return in Form ER-II.
  • Contribution Amount/Rate: Not applicable.
  • Main Records to be Kept: Records of vacancies notified, recruitment, and placement.
  • Key Provisions:
    • Compulsory notification of vacancies to employment exchanges.
    • Submission of returns on employment and vacancies.
    • Penalties for non-compliance.

CA GAURAV THAKUR

(FCA, LLB, DISA, BCOM, MCOM, FAFD, Certified Concurrent Auditor)

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CA GAURAV THAKUR

9716305901

Navigating Employee Rights in Himachal Pradesh: A Comprehensive Guide to the Shops and Commercial Establishments Act, 1969

The Himachal Pradesh Shops and Commercial Establishments Act, 1969, provides specific provisions regarding leave, working hours and holidays for employees. It applies to all shops and commercial establishments with some exceptions in the state of Himachal Pradesh located within jurisdiction of MC area. Here’s a summary of these provisions:


1. Leave:
– Employees who have worked for at least 20 days in a year are entitled to one day of earned leave for every 20 days of employment. Young persons (those aged between 14 and 18) are entitled to one day for every 15 days of employment.
– Unutilized leave can be carried forward, with the total not exceeding 40 days for young persons and 30 days for other employees.
– Leave applications should not be refused without a valid reason, communicated in writing within 15 days of the application.
– Employees are entitled to seven days of casual leave and seven days of sick leave annually.
– Wages in lieu of unavailed leave are to be provided upon dismissal, discharge, or resignation.

2. Holidays:
– Employees get holidays with wages on Independence Day, Republic Day, and Mahatma Gandhi’s birthday.
– Three additional holidays with wages are granted for festivals, as declared by the government.
– Double wages are due for work on these holidays.

3. Close-day and Off Days:
– Establishments must remain closed on a prescribed close-day: Sunday for general areas and Monday for cantonment areas.
– Employers must inform the authority about the close-day and any changes to it.
– Employees should not work on the close-day unless it coincides with a festival, in which case they receive double wages.
– Employees are entitled to one additional off day each week, ensuring a minimum of one rest day per week.

4. Working Hours and Rest Intervals:
– The Act restricts the working hours to 48 hours per week and 9 hours per day.
– Employees are entitled to an interval for rest or meals of at least half an hour after five hours of work, ensuring that the total spread-over does not exceed 10 hours in a day.
– The specifics of working hours, rest intervals, and off days are to be conspicuously displayed in the workplace and duly informed to the relevant authority.

These provisions aim to safeguard the well-being and work-life balance of employees in Himachal Pradesh, ensuring they have adequate rest, holidays, and leave benefits.


CA GAURAV THAKUR
9716305901

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Embark on a journey of financial and legal excellence with Ryts and Associates, a trusted name for over a decade. Our firm, with a strong presence in Himachal Pradesh, Delhi, and Chandigarh, offers a broad spectrum of services, including auditing and assurance, accounting, management consultancy, tax consultancy, labour laws consultancy, payroll, and trademark-related services. As your strategic partner, our team of six partners is dedicated to guiding you towards success with integrity and expertise.