Applicability of LABOUR LAW

Transcription

1 Applicability of LABOUR LAW LIST OF FEW ACTS Strength of Employees The Payment of Wages Act, The Minimum Wages Act, Shop & Establishment Act & Professional Tax 1 The Factories Act, The Payment of Gratuity Act, The Contract Labour (Regulation & Abolition) Act, The ESI Act, The EPF & MP Act, The Bonus Act Ministry of Labour & Employment is working to rationalise the provisions of 43 Labour Laws in 04 Groups maintenance of registers are going to be reduced to 05 from existing 56 1) Wages 2) Industrial Relations 3) Social Security & welfare 4) Safety & Working Conditions

2 The EPF & MP Act, 1952 Applicability: Every establishment employing 20 or more persons directly or through contractor in or in connection with the work of an establishment. Voluntarily Coverage: Any establishment employing even less than 20 persons can be covered voluntarily U/s 1(4) of the Act. Eligibility: mandatory deduction whose salary upto 15000/month and optionally where salary exceeds 15000/month Eligible Salary Components: BASIC WAGES, DEARNESS ALLOWANCES,RETAINING ALLOWANCES, FOOD CONCESSION (As per sec 2(b) read along with section 6 of the Act.) Deductions: 12% Employee Share % Employer Share (w.e.f.01/01/2017) = 25.36% total share to be paid latest by15th of next month. w.e.f.22/12/2016, EPFO has launched a new software ECR 2.0 where submission of excluded employees information are mandatory. Now the payment of PF can also be made through Debit Card along with Internet banking. Benefits under EPF/EPS/EDLI: available on youtube, type sohail & co.

3 The EPF & MP Act, 1952 Government has target to enrol all working persons under the EPF Act by 2030 EPFO has launched composite withdrawal form for EPF,EPS,Advance and EDLI,Pension withdrawals EPFO is planning of fixing of two ceilings, one fore making membership compulsory and one for mandatory contributions. (Discussed in CBT meeting dated:18/01/2017) EPFO shall fix a minimum percentage of gross wages to be mandatorily considered as Basic plus dearness allowances. (Discussed in CBT meeting dated:18/01/2017) Soon, Employee PF share will be optional Soon, PF Limit shall be hiked from to Soon, employee will get an option of NPS under EPF PF office conducts NIDHI AAPKE NIKAT by every month of 10th or next working day if 10th is Holiday where all grievances are attending by RPFC, Miss call to No factory Inspector visits allowed since April 2016 except hazardous process, in case of accident or complaint, ESI/PF inspection have already been generate through online Shram Suvidha Portal, GLO visits will also be generated online very soon

4 Employees Enrolment Coverage Campaign,2017 under EPF & MP Act,1952 It s like the Income Tax Declaration Scheme (IDS) Scheme launched on 01/01/2017 and valid till 31/03/2017 Every shops,factories and establishments having 20 or more direct or indirect employment are eligible under the scheme. Employees who are drawing less than salary and could not be enrolled as member by any reason on or after the 1st day of 04/2009 to 31/2016 can be declared under the scheme Dec/2015 Salary Worker Share Employer Share Total As per Rule Under Disclosure Scheme Saving 3981 Contribution along with Interest and Damages to be made immediately after 15th day of declaration otherwise such declaration shall be deemed to have not been made under this campaign. The declaration shall be treated bonafide unless proved otherwise and no inspection for verification is contemplated.

5 PMRPY/PMPRPY scheme launched on 09/08/2016 Necessary condition for eligibility of employees under PMRPY Scheme: New employee should have join in the establishment on or after 1st April, 2016 and should not have a regular employee in any EPF registered establishment prior to this. Employee should ensure that the new employee has a valid UAN number which is AADHAR linked. The monthly wages of the new employee should be less than Rs.15000/- Designation must be semi skill or un skill. Strength of PF member must be increased than MARCH-2016 Benefits The employer will continue to get the 8.33% share paid by the government for these eligible new employees for next 3 years from April 2016, provided they continue in employment by the same employer. In case of textile (apparel) sector, the employer is eligible to get the 12% share (8.33% % = 12%) paid by the Govt. For next 3 years from April 2016 as mentioned in PMRPY online form.

6 Calculation of PF/ESI/PT Basic +DA 55% HRA 35% Convey. 10% Total 100% Perfom. Allo. Gross Minimum Wages can be split into allowances for provident fund contributions order No.ATA 743(8) 2010 delivered by EPF Appellate Tribunal, New Delhi on dated: 26/11/2015 Allowances, even forming part of minimum wages, will not attract PF contribution, (APFC vs G4S security services (India) Ltd,2011 LLR 316 (P&H HC) HRA, overtime, Bonus, Commission, Washing Allowances will not attract EPF contribution. (Group 4 security vs EPF,2012 LLR 22 (Del HC) Special Allowances, DA, Conveyance, Transport, Washing, Other Allowances and Incentives paid to all employees would be treated as basic wages for EPF contributions. (Surya Roshni Ltd vs EPF, 2012 LLR 42 (MP HC). the same been challenged to Supreme Court. PF 12% ESI 1.75% Empee Emper Emper Empee % % Under the PMRPY Scheme 8.33% of employer share paid directly by GOI % Under Disclosure Scheme % PT 0 0 PFESI Total % % % Emper % % %

7 The Details of PF Challan and its Benefits for Employee w.e.f. 01/01/2017 EPF 15.67% EPS 8.33% EDLI 0.50% Adm. 0.65% Insp. 0.01% Total 25.16% Worker % Employer % % % % % % % Total Int. EPF can be withdrawal as and when member left to the establishment along with Compound levy interest as decided by GOI or may transfer to new establishment EPS can be withdrawal after completion of 06 months or before 09.6 Years as per below calculation: (Year-Proportion of Wage) (1=1.02) (2=1.99) (3=2.98) (4=3.99) (5=5.02) (6=6.07) (7=7.13) (8=8.22) (9=9.33) Wage on exit is 10,000 and 05 years service x 5.02 = 50200/- After Years member will get Pension subject to age of 58 years or reducing pension starting from age of 50 if member left to the establishment. Formula of Pension is : Pensionable Salary X Pensionable Service / 70 = Pension Example: 10,000 x 12 years = 1,20,000 / 70 = payable pension EDLI benefit is 30 times Avg. salary of last 12 months and 50% of EPF when death of member ( Max 06 Lacs) Example: Avg.Salary 10,000 X 30 = 3,00,000/- + 50,000 if EPF Balance is 1,00,000/-

8 The ESI Act, 1948 Applicability: Any shop or Factory employing 10 or more persons directly or through contractors under implemented area of ESIC are covered. Eligibility: Wages upto 21000/- w.e.f.01/01/2017 are eligible, No employee contribution for person drawing Wages Upto 137/-per day Deduction: Employee Share 1.75% + Employer Share 4.75% = 6.5% to be paid latest by 21st of next month Eligible Salary components: BASIC Wages + All Allowances = Gross are eligible except Washing Allowances if uniform provided by the establishment. Non implemented area: Soon, Act is being applicable to district wise in Gujarat.The rates of contribution in new implemented are would be remain 01% EE and 03% ER for next two years and No Super Speciality treatment will be provided to employees. ESIC has launched a SPREE (Scheme for promoting Registration of Employers and Employees) for the period from 20/12/2016 to 31/03/2017. Under the scheme No back period actions to be taken. Benefits under ESIC for workers and their family; AADHAR based E-pehchan, Sickness, Cash, Disablement, Dependent, Maternity, Funeral, Unemployment, Medical to Retired employee to get more type Sohail & Co. in youtube

9 The Payment of Wages Act, 1936 Amended Sec.6: All wages shall be paid in current coin or currency notes or by cheque or by crediting the wages in the bank account of the employees. Provided that the appropriate Government may, by notification in the official Gazette, specify the industrial or other establishment, the employer of which shall pay to every person employed in such industrial or other establishment, the wages only by cheque or by crediting the wages in his Bank account.the same is yet to be issued by the GOG hence the option for the payment by cash mode is yet open. Gujarat Govt. had amended the Sec.11 of Minimum Wages Act, and issued a notification dated: 30/12/2015 regarding payment by cheque only towards Minimum Wages where 20 or more employees are engaged and the same have recirculated on 29/12/2016

10 The Payment of Bonus Act, 1965 Every employee who is drawing salary (Basic+DA) up to 21000/-per month and has worked for a minimum period of 30 days in a year is entitled for Bonus w.e.f.01/04/2015 Exceeding 21000/-per month salaried(basic+da) person is not entitled for Bonus Minimum Bonus to be considered 7000/- or Minimum wage or 8.33% to 20% of drawing Salary as per availability of allocable surplus

11 The Payment of Gratuity Act, 1972 Any employee has to render minimum 05 years of service subject to work at least 240 days in a year Calculation of Gratuity; Last monthly Salary (Basic+DA)/26 x 15Days x Yrs = Gratuity ( Max.Payable is 10 Lacs w.e.f.24/05/2010) Example: 10000/26 x 15 Days=5769 x 05 Years= ( Gratuity)

12 The Contract Labour (R&A) Act,1970 Principal Establishment having 10 or more contractual employees is eligible for Registration under the Act Labour Contractor having 10 or more employees is eligible for licence by depositing Security Deposit of Rs. 270/-per worker (refundable) and licence fees as per strength of employees. Contract Labour (Regulation & Abolition) Act, 1970, Section 10 - Notification dated issued by state government of Gujarat prohibiting employment of contract labour in establishment of Arts, Silk Textile Units in Surat & surrounding area (Navsari and Valsad) in respect of processes of Bleaching, Finishing & Dyeing & Printing 03 Special Civil Applications vide No. SCA 3754/1985 with SCA 512/1985 and SCA 8851/1989 were filed against the above notification before Hon.Gujarat High court Order delivered by Hon Gujarat High Court dated:18/ : In the result, we do not find any merit in any of the petitions and, therefore, dismiss the same. Rule is discharged in each petition and interim relief would stand vacated. There will be no order as to costs.

13 Director Industrial Safety and Health The Factories Act, 1948 & Gujarat Factories Rules, Applicability: As per section 2(m)(i)(ii) factory having 10 workmen with the aid of power and 20 with the aid of power, employed directly or by contractor or by agency. Exemption: Mines,Mobile unit of army, railway running shed,hotel,restaurant, eating place, electron data processing unit or a computer unit is installed in any premises. Registration Procedure: (Investor facilitation Portal) The Payment of Wages Act, 1936 & Rules made there under. The Maternity Benefit Act, 1961 & Rules made there under The Building & Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996

14 Factory Act, 1948 Provisions Section Requirements Spread Over Section.56 More than 10 and Half hours in a day Daily/Weekly Hours & Intervals Weekly Off Leave Sec.54&59 Sec.52 Sec.79 Nine Hours a day and 48 hours a week & Half hours on continues working of 05 Hours If worker working on weekly holiday he has or will have a holiday for a whole day on one of the three day immediately After Completion of 03 months in a calendar year; 1 Leave for 20 working days for Adult worker. 1 Leave for 15 working days for Child worker. Overtime Sec.59 Only to workmen as per section 2(I) Wages Payment As per Payment of Wages Act, 1936 Safety Officer Sec.40-B =01, =02, =03, Above

15 Factory Act, 1948 Provisions Section Requirements Cooled Drinking water Toilets Urinals Sec.8(3) Sec.19 Sec or more employment 01 toilet for 25 workers up to 100, More than 100, 01 toilet for 50 workers 01 toilet for 50 workers up to 500, More than 500, 01 toilet for 100 workers First Aid box Sec.45(1) 1 for each 150 workers Ambulance Room & Van Sec.45(4) More than 500 employees Canteen, Lunch and Rest Room Sec.46 & 47 (1) more than 250 Welfare Officer Creche Room Sec.49 Sec to 2500=1 WO =1 WO + 1 ASS. More than 30 Female including separate bathroom and Urinal Facility

16 Other Points ESIC Office conducts SUVIDHA SAMAGAM by Second Wednesday of every month Toll free No: , Employee will get alternative option of ESI in near future GLWF contribution has been revised from Rs.3 to 6 of employee share and Rs.6 to 12 of employer share and payment shall be made through internet banking

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