SERVICES

EMPLOYEES PROVIDENT FUND AND MISLLANEOUS PROVISIONS ACT (EPF)

The Employees Provident Funds and Miscellaneous Provisions Act holds the most important position among the social security. The act came into existence in 1952 to ensure compulsory Provident Fund, Employees Pension Scheme and Deposit Linked Insurance Scheme in establishments for the benefit of employees. It applies to establishments which employees 20 or more employees and exemption if less than 20 employees.

An employee whose pay is less than Rs. 15,000 per month compulsorily have to contribute to EPF and if employee whose pay is more than Rs. 15,000 per month have an option to contribute or not.

Contribution is equally contributed by the employer and the employee at rate of 12%.

EMPLOYEES STATE INSURANCE SCHEME (ESIC)

The Employees State Insurance Scheme (ESIC) is applicable to all establishments empoying 10 or more persons and employees covered whose monthly wage is not exceeding Rs. 21,000.

Contribution for employees is 0.75% and for employer is 3.25%. ESIC provides multiple benefits to employees as per attachment.

ATTACHMENT:

ESIC BENEFITS FOR EMPLOYEES

SHOPS & ESTABLISHMENT ACT

The Shops and Establishments Act, is enacted by every state in India. The Act is designed to regulate payment of wages, hours of work, interval for rest, opening and closing hours, holidays, overtime work, annual leave, sick leave, casual leave, condition of the employment etc.

Also, Registration Certificate is to be taken by each establishment from respective state government.

GRATUITY ACT

The payment of Gratuity Act is applicable to an establishment in which 10 or more persons are employed.

Gratuity is a statutary benefit paid to employees who have rendered continuous service for not less than 5 years.

(a) on his superannuation

(b) on his retirement or resignation

CONTRACT LABOUR ACT

Applicability:

For Principal Employer: Applicable to every establishment (Principal employer) which employs 50 or more contract labour.

For Contractor: Applicable to every contractor who employees 50 or more workmen.

The Principal Employer shall apply for registration of an establishment before the registering officer which is not renewable and the Contractor shall obtain a license from the Licensing officer which is valid for a period of 1 year.

The principal employer is obliged under the CLA to ensure that wages have been paid to the contract labour in the presence of its (principal employer’s) authorized representative. If the contractor fails to pay wages to any worker, the principal employer has been made duty bound to pay the same.

LABOUR WELFARE FUND (LWF)

This Act seeks to provide for the constitution of the Labour Welfare Fund for the financing and to carry on various activities conducive to the welfare of labour in the State.

LWF is diffrent in every state but the aim is same. Besides this Act requires each employee shall contribute to the Fund every month an amount equal to zero point two percent of his salary or wages or any remuneration subject to a limit of rupees twenty-five and each employer in respect of each such employee shall contribute to the Fund every month, twice the amount contributed by such employee.

The act is applicable to Shops & Establishments, Factories, Hospitals (but except Schools) consisting of 10 or more employees including contractual.

THE CODE ON WAGES ACT, 2019

The Act combines four acts namely (i) Payment of Bonus Act (ii) Minimum Wages Act (iii) Payment of Wages Act (iv) Equal Remuneration Act. Now, the wages are divided into two categories (i) National Floor Rate Wages (ii) State Government Wages. The rate of wages will be revised in every 5 years. The act ensures that there is no discrimination between Men and Women. Also, timely payment of wages to all employees and workers.

Bonus is applicable to all employees working in an organisation for atleast 30 days in an accounting year and drawing wages not exceeding such amount per mensum as determined by notification of government. Bonus to be calculated at the rate of 8.33% or Rs. 100 of wages earned whichever is higher.

THE INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACTS, 1946

The Act requires employers in industrial establishments to formally define conditions of employment under them and submit draft of standing orders to certifying Authority for its Certification. It applies to every industrial establishment wherein 50 or more workmen are employed. Under the Industrial Employment (Standing Orders) Act, 1946, Certifying Officers certify the standing orders in respect of the establishments. CLC(C) and all Dy.CLCs(C) have been declared Appellate Authorities under the Act.

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