Laws applicable to karnataka state
sumitp...@gmail.com
Thanks in advance.
Sumit phadnis
Sent from my Nokia phone
gaurav
Mr. Sumit,
Below is the list of Acts/Rules that are applicable for a Factory situated in Karnataka.
Important Acts / Rules at a Glance
A. Employment Exchanges [Compulsory Notification of Vacancies] Act,1959 and Employment Exchanges [Compulsory Notification of Vacancies] Rules,1960
4.1 Applicability :
Any industry / trade / business / office / occupation in private sector, employing 25 or more persons, to do any work.
4.2 Duties and Obligations:
- To notify any vacancy in any employment, in the prescribed format, to the jurisdictional Employment Exchanges, at least 15 days in advance of filling up the vacancy.
- To intimate the result of selection to the Employment Exchanges within 15 days of such selection.
- To furnish a quarterly return in Form ER I, within 30 days from the closure of March, June, September and December and also a return in Form ER II, once in two years, within 30 days from the closure of the year.
- There is no obligation upon the employer to recruit any person sent by the Employment Exchange, to fill any vacancy.
4.3 Administering Authority
Directorate of Employment and Training.
B. Minimum Wages Act, 1948 and Minimum Wages [Karnataka] Rules, 1958
4.4 Applicability :
To all Scheduled Employments (irrespective of number of employees employed) as notified by the State / Central Government, from time to time. Presently, minimum rates of wages have been fixed for 68 scheduled employments some of which are:-
- Automobile Industry (including servicing and repairs)
- Ceramics, Stoneware and Potteries work.
- Chemical Industry
- Construction or maintenance of Roads or Building Operations.
- Electronics
- Engineering industry
- Food Processing
- Foundries
- Hospitals & Nursing Homes
- Metal Rolling and re rolling.
- Mini-cement.
- Residential Hotel and eating house.
- Rubber Products
- Shops and Commercial Establishments.
- Tanneries and Leather Industry.
- Tailoring Industry
- Textile (Silk) Industry
4.5 Duties and Obligations :
a)To pay the minimum rates of wages [Basic + DA] as fixed by the Government, from time to time.
[Note: DA is linked to the Average Consumer Price Index Number in the state and consequently the rate of DA changes every year from 1 st April]
b) To maintain: - Combined Muster Roll cum Wages Register
- Register of Overtime Payment
- Register of Fines, Deductions for Damages or Loss and Advances and
- Wage Slip in Form 6
c)To exhibit notices containing minimum rates of wages, abstract of the Act and the State Rules in Form X, Name and Address of the Inspector
d) To submit Annual Returns
4.6 Administering authority: The Labour Department.
C. The Apprentices Act, 1961 and The Apprenticeship Rules, 1991.
4.7 Applicability:
To any industry as notified by the Central Government.
Duties and Obligations:
- To engage Trade and Commercial apprentices; Technician and graduate trainees as notified by the Apprenticeship Adviser, in the prescribed ratio to workers employed.
- To provide practical, basic training and related instructions to apprentices [ Section 9 & 10]
- To pay stipend at the prescribed rates [Rule 11]
- To maintain periodical records and submit returns [Rule 14] within the prescribed time limits.
4.8 Administering Authority
Directorate of Employment and Training.
D. Contract Labour (Regulation and Abolition) Act, 1970 and Contract
Labour (Regulation and Abolition) (Karnataka) Rules, 1974.
4.9 Applicability
Applicable to establishments employing 20 or more workmen as contract labour The Act also applies to contractor who employs 20 or more workmen in one establishment.
4.10 Duties and Obligations
- Ta)To register the establishment with the appropriate authority upon employing 20 or more contract labourers, alongwith fees varying from Rs. 150/- (20 persons) to 3750/- (above 400 persons). Fees for grant of licence ranges from Rs. 100/- (20 persons) to Rs. 1250/- ( above 400 persons). A deposit of Rs. 10/- per contract labour shall be made by the Contractor with the appropriate authority.
- a)No contractor shall undertake or execute any work through contract labour unless he obtains a licence from the licensing officer]
- a)To provide canteens, (Section 16), Rest rooms (Section 17) and other facilities (Section 18) to the Contract Labour.
- a)To ensure that the Contractor disburses correct wages to his labour, by nominating his representative.
4.11 Administering Authority
Labour Department.
E. Employees Provident Funds and Miscellaneous Provisions Act, 1952
Employees Provident Funds Scheme 1952, Employees Pension Scheme 1995 and Employees Deposit Linked Insurance Scheme, 1976.
4.12 Applicability
Establishments employing 20 or more persons (including casuals, temporary, contract and daily wages, clerical, technical, managerial) and engaged in any of the 180 industries / classes of business specified, drawing salary upto Rs. 6500/- (Basic+ DA + Retaining allowances) per month.
4.13 Duties & Obligations
- To obtain PF Code Number, soon after employing 20 or more persons, from the Regional/ Sub-Regional PF Commissioner by submitting prescribed forms.
- To allot individual PF Number, to each employee and maintain the list in Form 9.
- To obtain Nomination and Declaration in Form.2 from every employee including casual, Temporary, Contract or Regular immediately and obtaining employer's Code Number.
- To deduct 12 % of earned salary (gross of Basic + DA+ retaining allowance if any) in the payment.
- To pay employee's share of 12% and employer's share of 3.67% to the Provident Fund in A/c. No.1 through prescribed common challan, within 15 days from the wage period.
- To pay employer's share of 8.33% to the Pension Fund in A/c. No. 2 through prescribed common challan within 15 days from the wage period.
- To pay PF Administration Charges at 1.10% to A/c. No. 10 through prescribed common challan within 15 days from the wage period.
- To pay EDL I charges at 0.5% to A/c. No. 21 through prescribed common challan within 15 days from the wage period.
- To pay Inspection charges at 0.01% to A/c. No.22 through prescribed common challan within 15 days from the wage period.
- To maintain Contribution Card in Form 3-A separately for all PF members.
- To send monthly statement of Contributions in Form 12-A alongwith copies of paid challans.
- To send Form 5 alongwith the Declaration and Nomination in Form 2 and Form 10 alongwith Form 3-A.
- To send Annual Returns in Form 6-A alongwith Form 3-A before 20 th March of each year.
4.14 Benefits of the Schemes:
a) Provident Fund
i) 15.6% of the salary is deposited every month under PF A/C which is a kind of compulsory savings for the employees.
ii) Withdrawals are permitted out of the above savings for purchase of a site, a flat or construction of house. Advances are permitted for certain purposes.
b) Pension Provision is available for members with a minimum 20 years of membership. Family pension provision is also made for wife and children after the death of a member.
c) In case of death of a member, insurance benefits are also available to the survivors.
4.15 Administering Authority
Regional / Sub-Regional Provident Fund Commissioners.
F. The Employee's State Insurance Act, 1948 and The Employees State Insurance (Central) Rules, 1950
4.16 Applicability
Applicable to all non-seasonal power using factories employing ten or more persons and non-power using factories employing 20 or more persons, drawing salary (total emoluments) upto Rs. 10, 000/- per month.
4.17 Duties & Obligations
- To register the factory / establishment, within 15 days by filing Form 1 and to obtain employer's code number.
- To obtain Declaration, in Form 1 before taking any person into employment. To send declaration forms within 10 days to the ESI Local office alongwith Return of Declaration in Form 3.
- To deduct 1.75% of the wages as employee's contribution and add 4.75% as employer's contribution and deposit the same within 21 days of the last day of the calendar month.
- To maintain a Register of Employees in Form 7 and make entries of contributions.
- To make payment of ESI contributions within 21 days of wage period.
- To send Return of Contributions in Form 6 to Local Office within 42 days from the closure of contribution period.
- To obtain particulars of employee's family in Form 1-A and later, any changes in Form 15-B, within 10 days, and submit the same to the local ESI office.
- To issue Identity Card, in place of slip, to the employees.
- To maintain a bound Inspection Book, prescribed under Regulation 102 A - an Accident Book in Form 15 and to send Accident Report to the local office/dispensary and to others depending upon the seriousness of the accident.
4.18 Benefits:
Employee will be eligible for medical benefit, sickness benefit, maternity benefit, disablement benefit, dependents’ benefit and funeral expenses. An employee will be eligible for full benefit only after contributing during the contribution period.
4.19 Administering Authority
The ESI Corporation.
G. The Environment (Protection) Act, 1986 and The Environment (Protection) Rules, 1986.
4.20 Applicability
Applicable to all industries manufacturing certain products / establishmentsas covered by the Act. The Act imposes the standards for emission or discharge of environmental pollutants and the industries are required to adhere to such standards.
4.21 Duties and Obligations
- To see that the standards for emission or discharge of environmental pollutants, are within the limit as prescribed in the Schedule-I to the Rules. (The standards are specified for 86 product groups)
- To maintain the ambient air quality standards as specified in the Schedule III to the Rules. (Different standards are set for industrial area, commercial area, residential area and silence zone- for day time and night time).
- To adhere to standards for emission or smoke, vapour etc from motor vehicles as specified in the Schedule IV to the Rules.
- To furnish information to the concerned authorities (as specified in Schedule-V) in case of excess pollution occurred or apprehended to occur, due to accident or other unforeseen events.
- To maintain the emission or discharge of environmental pollutants within the standards as specified in Schedule VI in case of industries, operations other than those listed in the Schedule I referred earlier.
- In case of any emission or discharge to maintain the relevant concentration in ambient air as specified in Schedule VII.
- To allow the empowered officer to take samples of air, water, soil or other substances for the purpose of analysis.
- Every person carrying on an industry, operation or process requiring consent under Section 25 of Water (Prevention & Control of Pollution) Act, 1974, or under Section 21 of Air (Prevention & Control of Pollution) Act, 1981 or both or authorisation under the Hazardous Waste (Management & Handling) Rules 1989 issued under the Environment Protection Act, 1986 shall submit an Environmental Statement for the financial year ending the 31st March in Form V to the KSPCB on or before the 30th day of September every year.
4.22 Administering Authority
Department of Forests, Ecology and Environment, GOK.
H. Equal Remuneration Act, 1976 and Equal Remuneration Rules, 1976
4.23 Applicability
All industries and other establishments.
4.24 Duties / Obligations:
- To pay equal remuneration to men and women workers for same work or work of a similar nature.
- No discrimination to be made while recruiting men and women workers.
- To maintain up-to-date register in relation to the workers employed by him in Form D.
4.25 Administering Authority
Labour Department / CIF & B
I. Industrial Employment (Standing Orders) Act, 1946 and Industrial Employment (Standing Orders) (Karnataka) Rules, 1961.
4.26 Applicability
Applicable to all industrial establishments employing fifty or more workmen.
4.27 Duties/ Obligations
- Submit 5 copies of Draft Standing Orders to the Commissioner of Labour in Form I, within 6 months from the date of application of the Act, for Certification and adoption.
- To draft Standing Orders on every matter as set out in the Schedule to the Act.
- Adopt Model Standing Orders, as prescribed by the State Government during the period of submission of Draft Standing Orders for Certification and it is certified.
- To display the Certified Standing Orders Prominently within the premises of the establishment.
- To pay subsistence allowance at 50% for 3 months and 75% thereafter during the period of suspension of a workman.
4.28 Administering Authority
Labour Department.
J. Karnataka Industrial Establishments (National & Festival Holidays) Act, 1963 and Rules, 1964
4.29 Applicability
Applicable to all industrial and other establishments including shops.
4.30 Duties/Obligations
- a)To allow every employee in each calendar year, a holiday on 26th Jan, 1st May, 15th Aug. 2nd Oct., 1st Nov, and other five festival holidays for such festivals as the employer may specify (from out of the list of 52 festivals given in Schedule to this Act) in consultation with employees.
- a)To give a paid holiday on the polling days to enable workmen to exercise their franchise.
- a)To display holidays list in the premises of establishment and send a copy to the jurisdictional Labour Inspector.
- a)To give twice the wages to employees who work on holidays or normal wages with a substituted holiday.
[ Note: Non compliance of applicable provisions may lead to legal actions including fine, imprisonment as specified under Section 13 of this Act]
4.31 Administering Authority
Labour Department.
K. Karnataka Labour Welfare Fund Act, 1965 and Rules 1968
4.32 Applicability
Applicable to all industrial and other establishments.
4.33 Duties and Obligations:
- To deduct Rs. 3/- from the employee's salary for December month and add Rs. 6/- as employer's contribution and deposit the same with the Labour Welfare Commissioner before 15th January of each year. The State Government also have to contribute Rs. 3/- per employee.
- a)To submit a statement of contributions in Form D, before 15th January each year.
- a)To remit all fines, wages, bonus etc. remained unpaid for more than 3 years, to the Labour Welfare Commissioner.
4.34 Administering Authority
The Labour Department / Karnataka Labour Welfare Board .
L. Karnataka Shops and Commercial Establishments Act, 1961 and Rules, 1963
4.35 Applicability
The Act is applicable to all Shops and Commercial Establishments located in areas as specified in the Act (at present 80 Towns and Cities are covered).
4.36 Duties and Obligations
- To apply for registration in Form 'A' to the Jurisdictional Inspector along with the fees prescribed and renew the registration once in 5 years.
- To maintain a leave with wages register in Form 'F'.
- To provide each employee with a 'leave with wages book' in Form H.
- To provide at least two sets of stairs or steps in case of a building with more than one storey.
- To exhibit a notice in Form D specifying the day of the week on which persons employed shall be given holiday.
- To exhibit a notice containing extracts of the Act and the Rules.
- To display the name board in Kannada and other languages below Kannada name.
4.37 Administering Authority
The Labour Department.
M. Payment of Bonus Act, 1965 and The Payment of Bonus Rules, 1975
4.38 Applicability
To all factories and establishments employing 10 or more persons.
4.39 Duties and Obligations
- To pay bonus to all employees drawing monthly salary up to Rs. 3,500/- and who have worked 30 or more days in an accounting year a minimum of 8.33% and a maximum of 20% of their annual earnings.
[Note: No bonus is payable for the first five accounting years if no profits are made. In case of profits in a year, bonus is payable for that year]
- To pay bonus within eight months from the date of closure of the accounting year.
- To maintain a register of computation of the allocable surplus in Form A, a register of set-on and set-off allocable surplus in Form B and a register of Payment of bonus in Form- C.
- To send annual return within 30 days from the last day of disbursal of bonus in Form-D to the jurisdictional Labour Inspector.
4.40 Administering Authority
The Labour Department.
N. The Maternity Benefit Act, 1961 and Karnataka Maternity Benefit Rules 1966.
4.41 Applicability
Applicable to every shop and establishment, factory, mine, plantation, in which ten or more persons are employed.
[Note: Where benefits under ESI Act are available, the Maternity Benefit Act will not be applicable].
4.42 Duties / Obligations / Contents:
- Not to employ a woman, during six weeks immediately after her delivery, miscarriage or medical termination of pregnancy.
- Not to provide arduous nature of work to pregnant women.
- To pay maternity benefits for a maximum period of twelve weeks of which six weeks before delivery and six weeks after delivery provided the women works for a minimum of 80 days in a year.
- To grant leave with wages for six weeks in case of miscarriage and medical termination of pregnancy and leave with wages for two weeks in case of tubectomy operation.
- To grant one month leave with wages, in addition to maternity benefits, for illness arising out of pregnancy, delivery, pre-mature birth of a child, miscarriage, medical termination of pregnancy and tubectomy operation.
- To give two breaks of 15 minutes each to nursing mothers until the child attains the age of 15 months.
- Not to discharge, dismiss during the period of absence allowed under the Act / Rules.
- To exhibit abstract of the Act and the Rules in the premises.
- To maintain Registers, Records and to submit returns in Form K, L & M on or before 31 st day of January,.
4.43 Administering Authority
For Factories : DFB
For others : Labour Department.
O. Payment of Gratuity Act, 1972 and Payment of Gratuity (Karnataka) Rules, 1973
4.44 Applicability
Applicable to factory, plantation, shop or any other establishments employing ten or more persons with minimum of five years continuous services (without any limit of salary)
4.45 Duties and Obligations
- To pay gratuity at the rate of 15 days salary per year of service to employees, who have put in a minimum of 5 years service. Maximum gratuity payable under the Act is Rs. 3.50 lakhs.
[Note: The calculation of gratuity should be made as follows:
Divide the monthly salary by 26 days and multiply by 15 days and further multiplied by number of years of services. The last year's service if more than six months to be taken as one year for calculation and in all other years employee should work minimum of 240 days.
- To pay gratuity with in 30 days from the date of receipt of application by the employee in Form 'I'.
- In case of more than 500 employees, to obtain compulsorily Insurance Policy, in this regard.
- To obtain nomination in Form F from employees on completion of one year service.
- To serve Notice of opening in Form A to jurisdictional controlling authority.
- To display abstract of the Acts and Rules in Kannada at the premises of establishment.
4.46 Administering Authority
The Labour Department.
P. Payment of Wages Act, 1936 and Karnataka Payment of Wages Rules, 1963
4.47 Applicability
Applicable to persons employed in factory or industrial and other establishments, plantation, construction of buildings etc. and drawing wages (total remuneration) of less than Rs. 1600/- per month.
4.48 Duties and Obligations
- To disburse wages before 7 th of each month if employing less than 1000 persons and before 10 th in all other cases.
- To disburse earned wages before the expiry of second working days in case of termination of the employment either by employer or employee.
- Not to make any deduction from the wages other than the list indicated under Section 7 of the Act.
- Not to impose any fine unless the acts and omissions got approved by the State Government (in terms of Section. 8)
- Any deduction for absence from duty or damage or loss should be in terms of Section 9, 10 and 11 only.
- All deductions for recovery of advances, loans, payment to co-operative societies shall be in terms of Section 12, 12A and 13.
- To maintain register of fines, deduction for damage or loss to be maintained in prescribed Common register of fines.
- To maintain register of wages in prescribed Common Muster Roll cum Register of Wages.
- To display the notice in Form 6 specifying rates of wages for different categories of employees and date of payment.
- To obtain prior permission from the Government for acts and omissions on which fine can be imposed.
- a)To submit common annual return in Form – IV before 15th February of the subsequent year.
4.49 Administering Authority
For Factories : CIF &B
For others : Labour Department.
Q. Workmen's Compensation Act, 1993 and Karnataka Workmen's Compensation Rules, 1966
4.50 Applicability
Applicable to workmen engaged in activities as listed in Schedule II of the Act (like manufacturing processes as defined under the Factory Act, construction of buildings, dams, roads, bridges etc.)
4.51 Duties and Obligations
- To pay compensation for death, personal injury caused by the accidents arising out of and in the course of his employment in terms of Section 4 of the Act.
[Note: The amount of minimum compensation prescribed is Rs. 50,000/- for death, and varies depending upon monthly wages, age of the workmen and other relevant factors and for permanent total disablement the minimum compensation is Rs.60, 000/-]
4.52 Administering Authority
Labour Department.
R. The Factories Act, 1948 and The Factories Rules, 1969
4.53 Applicability
Applicable to all premises wherein a manufacturing process as defined under Section 2 (k) of the Act is carried on, employing 10 or more persons.
4.54 Duties and Obligations
- To seek approval for the location of the factory (site), building plans, layout of plant and machinery from the CIF by submitting Form No. 1 along with enclosures and payment of fees.
- To obtain registration and grant and renewal of licence by submitting Form No. E along with other documents and payment of fees.
- To provide hygienic working conditions, provide welfare measures, grant leave with wages, ensure working hours as specified under the provisions of the Act.
- To maintain registers and submit periodical returns as required under the Rules.
- To appoint welfare officers if employing more than 500 workers.
- To appoint safety officers if employing 1000 or more workers.
- To provide dispensary if employing 500 or more workers.
- To provide canteen if employing more than 250 workers and if notified by the Government.
- To provide shelter cum rest room if employing more than 150 workers.
- To provide crèche if employing more than 30 women employers.
- To provide required first aid facility.
- To report all case of accidents which result in absence of workers from work to the CIF and others.
- To arrange examination of preserve vessels and testing of lifting tackles once in a year and maintain a record for the same.
- To display notices of period of work, abstract of the Factory Act and Rules, payment of Wages Act, Maternity Benefit Act.
- To submit annual returns before the deadline specified.
Please note, this is only an exhaustive list, other Act and Rules could be applicable depending on the Industry / Sector in which your Factory comes under.
Regards,
CS Gaurav Shenoy
Assistant Company Secretary
Indusfila
limited, Corporate office,
No.107, Industrial suburb,
II stage,Yeshwanthpur
Bangalore - 560
022
Mobile: 9743232093
Mail ID : gau...@indusfila.com
# Save paper, save environment ! Think before you print. There can be substitute for paper, not for trees !!!
sumitp...@gmail.com
Thanks Gaurav for your help.
Sent from my Nokia phone
-----Original Message-----
From: gaurav
Sent: 23:09:2010 10:54:38
Subject: RE: [CSMysore] Laws applicable to karnataka state
Mr. Sumit,
Below is the list of Acts/Rules that are applicable for a Factory situated in Karnataka.
Important Acts / Rules at a Glance
A. Employment Exchanges [Compulsory Notification of Vacancies] Act,1959 and Employment Exchanges [Compulsory Notification of Vacancies] Rules,1960
4.1 Applicability :
Any industry / trade / business / office / occupation in private sector, employing 25 or more persons, to do any work.
4.2 Duties and Obligations:
* To notify any vacancy in any employment, in the prescribed format, to the jurisdictional Employment Exchanges, at least 15 days in advance of filling up the vacancy.
* To intimate the result of selection to the Employment Exchanges within 15 days of such selection.
* To furnish a quarterly return in Form ER I, within 30 days from the closure of March, June, September and December and also a return in Form ER II, once in two years, within 30 days from the closure of the year.
* There is no obligation upon the employer to recruit any person sent by the Employment Exchange, to fill any vacancy.
4.3 Administering Authority
Directorate of Employment and Training.
B. Minimum Wages Act, 1948 and Minimum Wages [Karnataka] Rules, 1958
4.4 Applicability :
To all Scheduled Employments (irrespective of number of employees employed) as notified by the State / Central Government, from time to time. Presently, minimum rates of wages have been fixed for 68 scheduled employments some of which are:-
* Automobile Industry (including servicing and repairs)
* Ceramics, Stoneware and Potteries work.
* Chemical Industry
* Construction or maintenance of Roads or Building Operations.
* Electronics
* Engineering industry
* Food Processing
* Foundries
* Hospitals & Nursing Homes
* Metal Rolling and re rolling.
* Mini-cement.
* Residential Hotel and eating house.
* Rubber Products
* Shops and Commercial Establishments.
* Tanneries and Leather Industry.
* Tailoring Industry
* Textile (Silk) Industry
4.5 Duties and Obligations :
a)To pay the minimum rates of wages [Basic + DA] as fixed by the Government, from time to time.
[Note: DA is linked to the Average Consumer Price Index Number in the state and consequently the rate of DA changes every year from 1 st April]
b) To maintain: - Combined Muster Roll cum Wages Register
* Register of Overtime Payment
* Register of Fines, Deductions for Damages or Loss and Advances and
* Wage Slip in Form 6
c)To exhibit notices containing minimum rates of wages, abstract of the Act and the State Rules in Form X, Name and Address of the Inspector
d) To submit Annual Returns
4.6 Administering authority: The Labour Department.
C. The Apprentices Act, 1961 and The Apprenticeship Rules, 1991.
4.7 Applicability:
To any industry as notified by the Central Government.
Duties and Obligations:
* To engage Trade and Commercial apprentices; Technician and graduate trainees as notified by the Apprenticeship Adviser, in the prescribed ratio to workers employed.
* To provide practical, basic training and related instructions to apprentices [ Section 9 & 10]
* To pay stipend at the prescribed rates [Rule 11]
* To maintain periodical records and submit returns [Rule 14] within the prescribed time limits.
4.8 Administering Authority
Directorate of Employment and Training.
D. Contract Labour (Regulation and Abolition) Act, 1970 and Contract
Labour (Regulation and Abolition) (Karnataka) Rules, 1974.
4.9 Applicability
Applicable to establishments employing 20 or more workmen as contract labour The Act also applies to contractor who employs 20 or more workmen in one establishment.
4.10 Duties and Obligations
* Ta)To register the establishment with the appropriate authority upon employing 20 or more contract labourers, alongwith fees varying from Rs. 150/- (20 persons) to 3750/- (above 400 persons). Fees for grant of licence ranges from Rs. 100/- (20 persons) to Rs. 1250/- ( above 400 persons). A deposit of Rs. 10/- per contract labour shall be made by the Contractor with the appropriate authority.
* a)No contractor shall undertake or execute any work through contract labour unless he obtains a licence from the licensing officer]
* a)To provide canteens, (Section 16), Rest rooms (Section 17) and other facilities (Section 18) to the Contract Labour.
* a)To ensure that the Contractor disburses correct wages to his labour, by nominating his representative.
4.11 Administering Authority
Labour Department.
E. Employees Provident Funds and Miscellaneous Provisions Act, 1952
Employees Provident Funds Scheme 1952, Employees Pension Scheme 1995 and Employees Deposit Linked Insurance Scheme, 1976.
4.12 Applicability
Establishments employing 20 or more persons (including casuals, temporary, contract and daily wages, clerical, technical, managerial) and engaged in any of the 180 industries / classes of business specified, drawing salary upto Rs. 6500/- (Basic+ DA + Retaining allowances) per month.
4.13 Duties & Obligations
* To obtain PF Code Number, soon after employing 20 or more persons, from the Regional/ Sub-Regional PF Commissioner by submitting prescribed forms.
* To allot individual PF Number, to each employee and maintain the list in Form 9.
* To obtain Nomination and Declaration in Form.2 from every employee including casual, Temporary, Contract or Regular immediately and obtaining employer's Code Number.
* To deduct 12 % of earned salary (gross of Basic + DA+ retaining allowance if any) in the payment.
* To pay employee's share of 12% and employer's share of 3.67% to the Provident Fund in A/c. No.1 through prescribed common challan, within 15 days from the wage period.
* To pay employer's share of 8.33% to the Pension Fund in A/c. No. 2 through prescribed common challan within 15 days from the wage period.
* To pay PF Administration Charges at 1.10% to A/c. No. 10 through prescribed common challan within 15 days from the wage period.
* To pay EDL I charges at 0.5% to A/c. No. 21 through prescribed common challan within 15 days from the wage period.
* To pay Inspection charges at 0.01% to A/c. No.22 through prescribed common challan within 15 days from the wage period.
* To maintain Contribution Card in Form 3-A separately for all PF members.
* To send monthly statement of Contributions in Form 12-A alongwith copies of paid challans.
* To send Form 5 alongwith the Declaration and Nomination in Form 2 and Form 10 alongwith Form 3-A.
* To send Annual Returns in Form 6-A alongwith Form 3-A before 20 th March of each year.
4.14 Benefits of the Schemes:
a) Provident Fund
i) 15.6% of the salary is deposited every month under PF A/C which is a kind of compulsory savings for the employees.
ii) Withdrawals are permitted out of the above savings for purchase of a site, a flat or construction of house. Advances are permitted for certain purposes.
b) Pension Provision is available for members with a minimum 20 years of membership. Family pension provision is also made for wife and children after the death of a member.
c) In case of death of a member, insurance benefits are also available to the survivors.
4.15 Administering Authority
Regional / Sub-Regional Provident Fund Commissioners.
F. The Employee's State Insurance Act, 1948 and The Employees State Insurance (Central) Rules, 1950
4.16 Applicability
Applicable to all non-seasonal power using factories employing ten or more persons and non-power using factories employing 20 or more persons, drawing salary (total emoluments) upto Rs. 10, 000/- per month.
4.17 Duties & Obligations
* To register the factory / establishment, within 15 days by filing Form 1 and to obtain employer's code number.
* To obtain Declaration, in Form 1 before taking any person into employment. To send declaration forms within 10 days to the ESI Local office alongwith Return of Declaration in Form 3.
* To deduct 1.75% of the wages as employee's contribution and add 4.75% as employer's contribution and deposit the same within 21 days of the last day of the calendar month.
* To maintain a Register of Employees in Form 7 and make entries of contributions.
* To make payment of ESI contributions within 21 days of wage period.
* To send Return of Contributions in Form 6 to Local Office within 42 days from the closure of contribution period.
* To obtain particulars of employee's family in Form 1-A and later, any changes in Form 15-B, within 10 days, and submit the same to the local ESI office.
* To issue Identity Card, in place of slip, to the employees.
* To maintain a bound Inspection Book, prescribed under Regulation 102 A - an Accident Book in Form 15 and to send Accident Report to the local office/dispensary and to others depending upon the seriousness of the accident.
4.18 Benefits:
Employee will be eligible for medical benefit, sickness benefit, maternity benefit, disablement benefit, dependents' benefit and funeral expenses. An employee will be eligible for full benefit only after contributing during the contribution period.
4.19 Administering Authority
The ESI Corporation.
G. The Environment (Protection) Act, 1986 and The Environment (Protection) Rules, 1986.
4.20 Applicability
Applicable to all industries manufacturing certain products / establishmentsas covered by the Act. The Act imposes the standards for emission or discharge of environmental pollutants and the industries are required to adhere to such standards.
4.21 Duties and Obligations
* To see that the standards for emission or discharge of environmental pollutants, are within the limit as prescribed in the Schedule-I to the Rules. (The standards are specified for 86 product groups)
* To maintain the ambient air quality standards as specified in the Schedule III to the Rules. (Different standards are set for industrial area, commercial area, residential area and silence zone- for day time and night time).
* To adhere to standards for emission or smoke, vapour etc from motor vehicles as specified in the Schedule IV to the Rules.
* To furnish information to the concerned authorities (as specified in Schedule-V) in case of excess pollution occurred or apprehended to occur, due to accident or other unforeseen events.
* To maintain the emission or discharge of environmental pollutants within the standards as specified in Schedule VI in case of industries, operations other than those listed in the Schedule I referred earlier.
* In case of any emission or discharge to maintain the relevant concentration in ambient air as specified in Schedule VII.
* To allow the empowered officer to take samples of air, water, soil or other substances for the purpose of analysis.
* Every person carrying on an industry, operation or process requiring consent under Section 25 of Water (Prevention & Control of Pollution) Act, 1974, or under Section 21 of Air (Prevention & Control of Pollution) Act, 1981 or both or authorisation under the Hazardous Waste (Management & Handling) Rules 1989 issued under the Environment Protection Act, 1986 shall submit an Environmental Statement for the financial year ending the 31st March in Form V to the KSPCB on or before the 30th day of September every year.
4.22 Administering Authority
Department of Forests, Ecology and Environment, GOK.
H. Equal Remuneration Act, 1976 and Equal Remuneration Rules, 1976
4.23 Applicability
All industries and other establishments.
4.24 Duties / Obligations:
* To pay equal remuneration to men and women workers for same work or work of a similar nature.
* No discrimination to be made while recruiting men and women workers.
* To maintain up-to-date register in relation to the workers employed by him in Form D.
4.25 Administering Authority
Labour Department / CIF & B
I. Industrial Employment (Standing Orders) Act, 1946 and Industrial Employment (Standing Orders) (Karnataka) Rules, 1961.
4.26 Applicability
Applicable to all industrial establishments employing fifty or more workmen.
4.27 Duties/ Obligations
* Submit 5 copies of Draft Standing Orders to the Commissioner of Labour in Form I, within 6 months from the date of application of the Act, for Certification and adoption.
* To draft Standing Orders on every matter as set out in the Schedule to the Act.
* Adopt Model Standing Orders, as prescribed by the State Government during the period of submission of Draft Standing Orders for Certification and it is certified.
* To display the Certified Standing Orders Prominently within the premises of the establishment.
* To pay subsistence allowance at 50% for 3 months and 75% thereafter during the period of suspension of a workman.
4.28 Administering Authority
Labour Department.
<http://www.kumbangalore.com/Htmlpages/Entrepreneurs%20guide/page5.html##>
J. Karnataka Industrial Establishments (National & Festival Holidays) Act, 1963 and Rules, 1964
4.29 Applicability
Applicable to all industrial and other establishments including shops.
4.30 Duties/Obligations
* a)To allow every employee in each calendar year, a holiday on 26th Jan, 1st May, 15th Aug. 2nd Oct., 1st Nov, and other five festival holidays for such festivals as the employer may specify (from out of the list of 52 festivals given in Schedule to this Act) in consultation with employees.
* a)To give a paid holiday on the polling days to enable workmen to exercise their franchise.
* a)To display holidays list in the premises of establishment and send a copy to the jurisdictional Labour Inspector.
* a)To give twice the wages to employees who work on holidays or normal wages with a substituted holiday.
[ Note: Non compliance of applicable provisions may lead to legal actions including fine, imprisonment as specified under Section 13 of this Act]
4.31 Administering Authority
Labour Department.
K. Karnataka Labour Welfare Fund Act, 1965 and Rules 1968
4.32 Applicability
Applicable to all industrial and other establishments.
4.33 Duties and Obligations:
* To deduct Rs. 3/- from the employee's salary for December month and add Rs. 6/- as employer's contribution and deposit the same with the Labour Welfare Commissioner before 15th January of each year. The State Government also have to contribute Rs. 3/- per employee.
* a)To submit a statement of contributions in Form D, before 15th January each year.
* a)To remit all fines, wages, bonus etc. remained unpaid for more than 3 years, to the Labour Welfare Commissioner.
4.34 Administering Authority
The Labour Department / Karnataka Labour Welfare Board .
L. Karnataka Shops and Commercial Establishments Act, 1961 and Rules, 1963
4.35 Applicability
The Act is applicable to all Shops and Commercial Establishments located in areas as specified in the Act (at present 80 Towns and Cities are covered).
4.36 Duties and Obligations
* To apply for registration in Form 'A' to the Jurisdictional Inspector along with the fees prescribed and renew the registration once in 5 years.
* To maintain a leave with wages register in Form 'F'.
* To provide each employee with a 'leave with wages book' in Form H.
* To provide at least two sets of stairs or steps in case of a building with more than one storey.
* To exhibit a notice in Form D specifying the day of the week on which persons employed shall be given holiday.
* To exhibit a notice containing extracts of the Act and the Rules.
* To display the name board in Kannada and other languages below Kannada name.
4.37 Administering Authority
The Labour Department.
M. Payment of Bonus Act, 1965 and The Payment of Bonus Rules, 1975
4.38 Applicability
To all factories and establishments employing 10 or more persons.
4.39 Duties and Obligations
* To pay bonus to all employees drawing monthly salary up to Rs. 3,500/- and who have worked 30 or more days in an accounting year a minimum of 8.33% and a maximum of 20% of their annual earnings.
[Note: No bonus is payable for the first five accounting years if no profits are made. In case of profits in a year, bonus is payable for that year]
* To pay bonus within eight months from the date of closure of the accounting year.
* To maintain a register of computation of the allocable surplus in Form A, a register of set-on and set-off allocable surplus in Form B and a register of Payment of bonus in Form- C.
* To send annual return within 30 days from the last day of disbursal of bonus in Form-D to the jurisdictional Labour Inspector.
4.40 Administering Authority
The Labour Department.
N. The Maternity Benefit Act, 1961 and Karnataka Maternity Benefit Rules 1966.
4.41 Applicability
Applicable to every shop and establishment, factory, mine, plantation, in which ten or more persons are employed.
[Note: Where benefits under ESI Act are available, the Maternity Benefit Act will not be applicable].
4.42 Duties / Obligations / Contents:
* Not to employ a woman, during six weeks immediately after her delivery, miscarriage or medical termination of pregnancy.
* Not to provide arduous nature of work to pregnant women.
* To pay maternity benefits for a maximum period of twelve weeks of which six weeks before delivery and six weeks after delivery provided the women works for a minimum of 80 days in a year.
* To grant leave with wages for six weeks in case of miscarriage and medical termination of pregnancy and leave with wages for two weeks in case of tubectomy operation.
* To grant one month leave with wages, in addition to maternity benefits, for illness arising out of pregnancy, delivery, pre-mature birth of a child, miscarriage, medical termination of pregnancy and tubectomy operation.
* To give two breaks of 15 minutes each to nursing mothers until the child attains the age of 15 months.
* Not to discharge, dismiss during the period of absence allowed under the Act / Rules.
* To exhibit abstract of the Act and the Rules in the premises.
* To maintain Registers, Records and to submit returns in Form K, L & M on or before 31 st day of January,.
4.43 Administering Authority
For Factories : DFB
For others : Labour Department.
O. Payment of Gratuity Act, 1972 and Payment of Gratuity (Karnataka) Rules, 1973
4.44 Applicability
Applicable to factory, plantation, shop or any other establishments employing ten or more persons with minimum of five years continuous services (without any limit of salary)
4.45 Duties and Obligations
* To pay gratuity at the rate of 15 days salary per year of service to employees, who have put in a minimum of 5 years service. Maximum gratuity payable under the Act is Rs. 3.50 lakhs.
[Note: The calculation of gratuity should be made as follows:
Divide the monthly salary by 26 days and multiply by 15 days and further multiplied by number of years of services. The last year's service if more than six months to be taken as one year for calculation and in all other years employee should work minimum of 240 days.
* To pay gratuity with in 30 days from the date of receipt of application by the employee in Form 'I'.
* In case of more than 500 employees, to obtain compulsorily Insurance Policy, in this regard.
* To obtain nomination in Form F from employees on completion of one year service.
* To serve Notice of opening in Form A to jurisdictional controlling authority.
* To display abstract of the Acts and Rules in Kannada at the premises of establishment.
4.46 Administering Authority
The Labour Department.
<http://www.kumbangalore.com/Htmlpages/Entrepreneurs%20guide/page5.html##>
P. Payment of Wages Act, 1936 and Karnataka Payment of Wages Rules, 1963
4.47 Applicability
Applicable to persons employed in factory or industrial and other establishments, plantation, construction of buildings etc. and drawing wages (total remuneration) of less than Rs. 1600/- per month.
4.48 Duties and Obligations
* To disburse wages before 7 th of each month if employing less than 1000 persons and before 10 th in all other cases.
* To disburse earned wages before the expiry of second working days in case of termination of the employment either by employer or employee.
* Not to make any deduction from the wages other than the list indicated under Section 7 of the Act.
* Not to impose any fine unless the acts and omissions got approved by the State Government (in terms of Section. 8)
* Any deduction for absence from duty or damage or loss should be in terms of Section 9, 10 and 11 only.
* All deductions for recovery of advances, loans, payment to co-operative societies shall be in terms of Section 12, 12A and 13.
* To maintain register of fines, deduction for damage or loss to be maintained in prescribed Common register of fines.
* To maintain register of wages in prescribed Common Muster Roll cum Register of Wages.
* To display the notice in Form 6 specifying rates of wages for different categories of employees and date of payment.
* To obtain prior permission from the Government for acts and omissions on which fine can be imposed.
* a)To submit common annual return in Form - IV before 15th February of the subsequent year.
4.49 Administering Authority
For Factories : CIF &B
For others : Labour Department.
Q. Workmen's Compensation Act, 1993 and Karnataka Workmen's Compensation Rules, 1966
4.50 Applicability
Applicable to workmen engaged in activities as listed in Schedule II of the Act (like manufacturing processes as defined under the Factory Act, construction of buildings, dams, roads, bridges etc.)
4.51 Duties and Obligations
* To pay compensation for death, personal injury caused by the accidents arising out of and in the course of his employment in terms of Section 4 of the Act.
[Note: The amount of minimum compensation prescribed is Rs. 50,000/- for death, and varies depending upon monthly wages, age of the workmen and other relevant factors and for permanent total disablement the minimum compensation is Rs.60, 000/-]
4.52 Administering Authority
Labour Department.
R. The Factories Act, 1948 and The Factories Rules, 1969
4.53 Applicability
Applicable to all premises wherein a manufacturing process as defined under Section 2 (k) of the Act is carried on, employing 10 or more persons.
4.54 Duties and Obligations
* To seek approval for the location of the factory (site), building plans, layout of plant and machinery from the CIF by submitting Form No. 1 along with enclosures and payment of fees.
* To obtain registration and grant and renewal of licence by submitting Form No. E along with other documents and payment of fees.
* To provide hygienic working conditions, provide welfare measures, grant leave with wages, ensure working hours as specified under the provisions of the Act.
* To maintain registers and submit periodical returns as required under the Rules.
* To appoint welfare officers if employing more than 500 workers.
* To appoint safety officers if employing 1000 or more workers.
* To provide dispensary if employing 500 or more workers.
* To provide canteen if employing more than 250 workers and if notified by the Government.
* To provide shelter cum rest room if employing more than 150 workers.
* To provide crèche if employing more than 30 women employers.
* To provide required first aid facility.
* To report all case of accidents which result in absence of workers from work to the CIF and others.
* To arrange examination of preserve vessels and testing of lifting tackles once in a year and maintain a record for the same.
* To display notices of period of work, abstract of the Factory Act and Rules, payment of Wages Act, Maternity Benefit Act.
* To submit annual returns before the deadline specified.
Please note, this is only an exhaustive list, other Act and Rules could be applicable depending on the Industry / Sector in which your Factory comes under.
Regards,
CS Gaurav Shenoy
Assistant Company Secretary
Indusfila limited, Corporate office,
No.107, Industrial suburb,
II stage,Yeshwanthpur
Bangalore - 560 022
Mobile: 9743232093
Mail ID : gau...@indusfila.com
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