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The Contract Labour (Regulation and Abolition) Central Rules as amended on 11th August, 1987 provide that a copy of the license shall be displayed prominently at the premises where the contract work is being carried out.

If the principal employer engages the contractors’ workmen without registration of the principal employer is liable for action under section 24 of the Act i.e. imprisonment upto three months or fine which may extend upto one thousand or with both.

The act applies to every establishment employing 50 or more contract workers (In Gujarat) or Specified Number of Workers in respective state. Establishment means any office or department of the Government or a local authority or any place where any trade, industry, business, manufacture or occupation is carried out.

Yes. The act applies to every establishment employing 50 or more contract workers (In Gujarat) or Specified Number of Workers in respective state. Establishment means any office or department of the Government or a local authority or any place where any trade, industry, business, manufacture or occupation is carried out.

Yes. The principal employer may engage contract labour in any core activity if there is any sudden increase of volume of work in the core activity which needs to the accomplished in a specified time.

"Core Activity of an establishment" means any activity for which the establishment is set up and includes any activity which is essential or necessary to the core activity, but does not include

  • Sanitation works, including sweeping, cleaning, dusting, and collection and disposal of all kinds of waste.
  • Watch and ward services including security service.
  • Canteen and catering services.
  • Loading and unloading operations
  • Running of Hospitals, Educational and Training Institutions, Guest Houses, Clubs and the like where they are in the nature of support services of an Establishment.
  • Courier Services which are in nature of support services of an Establishment.
  • Civil and other constructional works, including maintenance.
  • Gardening and maintenance of Lawns etc.
  • Housekeeping and laundry services etc., where they are in nature support services of an Establishment.
  • Transport services including Ambulance Services;
  • Any activity of intermittent in nature even if that constitutes a core-activity of an Establishment and

Any other activity which is incidental to the core activity. Provided that the above activities by themselves are not the "Core Activities" of such establishment.

Contract Labour is prohibited for the core activity of the Establishment or the activity which is perennial in nature.

In respect of Government or Local Authority - Principal employer means head of the office or department or such other officer notified by the government or local Authority. In case of a factory, the owner or occupier or manager of the factory under the Factories Act. In case of a mine, the owner or agent named as the manager of the mine. In any other establishment any person responsible for the supervision and control of the establishment.

A person who undertakes to produce a given result for the establishment, other than a mere supply of goods or articles of manufacture to such establishment, through contract labour or who supplies contract labour for any work of the establishment and includes a sub-contractor.

A workman shall be deemed to be employed as ‘contract labour’ in or in connection with the work of an establishment when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer.

Welfare Board intriduces different welfare schemes time to time.

You may access the schemes via:
https://bocwwb.gujarat.gov.in/schemes-guj.htm

For Direct Employment:
The Owner, Builder, or Developer who directly employs building and construction workers for a project.

For Contractual Employment:
The Contractor who is employing the Construction Workers is considered an employer concerning the workers they directly engage.

  • Registration of Establishments engaging 10 or more workers.
  • Registration of Workers with the State Welfare Board.
  • Payment of Cess at 1% of the construction cost.
  • Ensuring health, safety, and welfare measures at construction sites.
  • Appointment of Safety Officers (if applicable).
  • Submission of periodic returns and reports to authorities.

Any person employed directly or through a contractor in building or construction work, including masons, carpenters, electricians, plumbers, painters, and other skilled or unskilled laborers.

The Act applies to all building and construction workers engaged in:

  • Construction, alteration, repairs, maintenance, demolition of buildings, roads, bridges, dams, canals, etc.
  • Worksites employing 10 or more workers.

The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 is a welfare legislation enacted by the Government of India to regulate the employment conditions of building and construction workers and ensure their safety, health, and welfare.

If your company/establishment is a covered unit under the ESI Act, then you should take care of the followings :

  1. Any employee whose gross rate of wage is upto Rs.21,000/= (which is defined wage as on date) or the amount so declared by the authority is covered under the ESI act and liable to pay ESI for that employee, @ defined under the act (as on date employee’s share of contribution is 0.75% of gross earned wage and employer’s share of contribution is 3.25% of gross earned wage). Please take note that PF is applicable on Basic wage while ESI is applicable on gross wage.
  2. Any employee whose wage rate is upto Rs.21,000/= or statutory limit set by the authority in the month of April and October, liable to pay ESI for  full contribution period i.e. upto Sept. or Mar. If any employee got increment other than the month of April or October, ESI is tobe deducted and deposited upto September or March whichever may be the case. e.g. If Mr. ABC is a member of ESI at the gross wage rate of Rs.20,000/=. He received an increment of Rs.5000/= per month so his salary rate set to Rs.25,000/= in the month of June. So, his ESI is tobe deducted and deposited upto the month of September and from new contribution period i.e. from October his ESI neither be deducted nor to be deposited. Similarly if Mr. XYZ also a member of ESI with the gross salary rate of Rs.20000/= and in the month of April he got an increment of Rs.2500/= p.m. So, his salary rate becomes Rs.22,500/= from April. So, in the month of April, you need not to deduct his ESI. In above two cases ABC has got increment in mid month of contribution period while XYZ has got increment in the first month of the contribution period. So in the case of ABC, company has to pay BSI upto the month of Sept. (which is the nearest last month of contribution period) while in the case of XYZ company has stop deducting ESI from April which is increment month, and also first month of the contribution period, So deduction of ESI stopped from April itself.
  3.  Any contractor, who is separately covered, then the compliance under the ESI Act should be watched by the establishment   who is hiring that contractor as a principal employer.
  4. Any contractor who is not separately covered under the ESI Act, then the compliance of the provision of the said act is tobe done under the ESI code of the principal employer who has hired a contractor.
  1. Accident Report: Notice of Accident to the concerned Branch office in Form -12 should be submitted on-line within 24 hours.
  2. Abstention verification Report: It is required to be submitted to the Branch office as and when it is sought by the Branch Manager in respect of any IP.
  3. Records including attendance, wages and books of accounts etc. in respect of principal employer and records of immediate employer as required by the Labour Laws.

For ESI compliance the employer has to maintain following records:
1. Muster roll, wage record and books of Account maintained under other laws.
2. Accident Register in new Form-11
3. An inspection book.  
4. The immediate employer is also required to maintain the Employees’ Register for the employees deployed to the principal employer.

The Corporation may levy and recover damages under Reg. 31C at the following rates, not exceeding the amount of contribution payable for default or delay in payment of the contribution. 

Period of delay

Rate of damages in % p.a.

Less than 2 months

1

2 to 4 months

10

4 to 6 months

15

6 months and above

25

 

The employer is liable for prosecution under Section 85(a) for the first time, Whoever, having been convicted by a court of an offence punishable under the Act, commits the same offence shall, for every such subsequent offence, liable for enhanced punishment under section 85 A of the Act.

The section 46 of the Act envisages following six social security benefits :

 

(a) Medical Benefit

(b) Sickness Benefit(SB)

1. Extended sickness Benefit(ESB)

2. Enhanced Sickness Benefit

(c) Maternity Benefit(MB)

(d) Disablement Benefit

1. Temporary disablement benefit(TDB)

2. Permanent disablement benefit(PDB)

(e) Dependant's Benefit(DB)

(f) Funeral Expenses

An interesting feature of the ESI Scheme is that the contributions are related to the paying capacity as a fixed percentage of the workers’ wages, whereas, they are provided social security benefits according to individual needs without distinction.

Cash Benefits are disbursed by the Corporation through its Local Offices LOs/ Mini Local Offices (MLOs)/Sub Local Offices SLOs)/pay offices, subject to certain contributory conditions.

In addition, the scheme also provides some other need based benefits to insured workers.

These includes :

i. Rehabilitation allowance

ii. Vocational Rehabilitation

iii. Unemployment Allowance (Under Rajiv Gandhi Shramik Kalyan Yojana)

Any sum deducted by the Principal employer from wages under the ESI Act shall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted as per Section  40 (4) of the ESI Act,1948. Non-payment or delayed payment of the Employee's contribution deducted from the wages of the employee amounts to ' Breach of trust' and is punishable under IPC 406, 409 and also an offence u/s 85 of ESI Act.

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 the contribution is to be deducted and paid on the total wages earned by him.

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 there is a change in the manufacturing activity.

 In an area notified u/s 1(3) by Central Govt. all factories  where 10 or more persons are employed  attract coverage under Section2(12) of ESI Act. Further, according to the notification issued by the appropriate Government (Central/State) under Section 1(5) of the Act, the following establishments employing 10 or more persons attract ESI coverage.

(i) Shops
(ii) Hotels or restaurants not having any manufacturing activity, but only engaged in 'sales'.
(iii) Cinemas including preview theaters;  
(iv) Road Motor Transport Establishments;
(v) News paper establishments.(that is not covered as factory under Sec.2(12));
(vi)  Private Educational Institutions (those run by individuals, trustees, societies or other organizations and Medical Institutions (including Corporate, Joint Sector, trust, charitable, and private ownership hospitals, nursing homes, diagnostic centers, pathological labs).

In some states coverage is still for 20 or more persons employed under sec 1(5). A few State Governments have not extended scheme to Medical & Educational Institutions.

ESI Scheme is implemented in phases in different part of the country through Gazette notification after making the infrastructure available towards dispensation of medical as well as other benefits provided under the provisions of the Act to the prospective beneficiaries.

Check the same from: http://www.esic.in/web/esic/coverage

Employees’ State Insurance Scheme of India is a multi-dimensional Social Security Scheme tailored to provide Socio-economic protection to 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.

Every employer is assured with the following :

  • KYC of each employee is tobe completed.
  • Any pending authorisation must be authorized, so every employer has to check up pending authorisation within particular period or regular intervals.

Every principal employer is guided/advised  to follow bellow listed instructions to avoid legal contravention of the provisions :

  • Take indemnity bond from each contractor.
  • Force the contractor to submit below listed documents with monthly bill:
  • Declaration for full compliance on letterhead.
  • Copies of ECR, Challan, Payment confirmation for P.F.
  • Copies of muster roll and wages register for the month for which bill is submitted or atleast for the previous month. If copies are of previous month, then compare those with previous month’s bill.
  • Put a clause in work order to indemnify the company from any type of non-compliance.
  • If possible, force the contractor to file separate ECR for your company each month.

Your above practice will set you on driver sit every time at the time of inspection from the authority.

Employer who is deducting the P.F from employee’s salary/wage is the finally responsible for any non-compliance of the EPF provisions.

However,

  1. If any employer has hired a contractor who is not covered separately under the EPF & MP Act, 1952; in that case employer who has hired a contractor is finally responsible for any non-compliance even by the contractor.
  2. If any employer has hired a contractor who is separately covered under the EPF & MP Act, 1952 and if employer who has hired a contractor has taken proper care for contractor to comply the provision then separately covered contractor is finally responsible for any non-compliance. If employer who has hired a contractor has not taken proper care for contractor to comply the provisions then that employer is finally responsible for non-compliance by the contractor.

No. you cannot deduct employer’s share of contribution from employee’s salary/wage, otherwise that will be contravention of the provisions of the EPF scheme.

No. you cannot reduce EPF wage. If you have reduced employee’s basic wage on punishment of the misconduct, you may reduce EPF wage.

After hiring the employee, you must ensure first about the becoming member of EPFO by the criteria given above. If that employee is going to become a member then you should take care of the following:

  1. If employee is a previous member of EPFO, then ask him/her about his/her old UAN. and with the same UAN register that employee with your login credential. If the said employee is not a member of EPFO then register his name and get new UAN by logging in into your EPFO portal.
  2. Whenever you register your employee at your EPFO portal, you should confirm about KYC of the your employee be seeded or not. (KYC means seeding of Aadhar, bank and PAN) If not seeded then do it first.

Whenever you register your employee at your EPFO portal, confirm with that employee that his/her UAN was activated or not? If not activated then activate the same and explain your said employee to submit nominee from his/her i.e. employee’s portal.

If your company/establishment is a covered unit under the EPF & MP Act, 1952 then you should take care of the followings:

  1. Any employee, whose basic wage is upto the defined limit (as on date Rs.15000/-) then you must deduct PF of those employees at the defined rate (as on date 12%). However, you are allowed not to deduct PF of defined exempted employees like the employees who are ex-army man.
  2. Any employee whose basic wage is above the defined limit (as on date Rs.15000/-) and is a member of EPF, then that employee’s PF is tobe deducted and paid, at the statutory defined rate (as on date 12%) atleast on Rs.15000/-.

e.g. Mr. ABC is drawing Rs.50000/- as gross salary with Rs.25000/- as basic. But he is a member of PF then PF must be deducted on Rs.15000/-. If employer and employee both of them wish to deduct PF on more than the amount of Rs.15000/- then by filing declaration in a form defined under para26 (2) of the EPF scheme, PF is to be deducted and paid on the amount so declared.

  1.  Any employee whose basic wage is above the defined limit (as on date Rs.15000/-) and is not a member of EPF, them there 3 options are there to deposit the PF
  1. if employer and employee both wishes to deduct & pay PF, then employer may deduct PF on statutory limited wage (as on date Rs.15000/-)
  2. if employer and employee both wishes to deduct and pay PF, then employer may deduct PF on employee’s full basic salary by filing declaration in a form defined under para26 (2) of the EPF scheme.
  3. if any of one from employer or employee does not wish to deduct or pay PF, employer is allowed not to deduct that employee’s PF and not pay.
  1.  Any employee would like to pay more PF contribution than the defined rate (as on date 12%), that employee is allowed to do so by filing a permission from under para26 (2) of EPF scheme.

e.g. If Mr. ABC would like to deposit his contribution of PF @24% then he is allowed to do so by filing the aforesaid form.

This type of PF contribution is termed as VPF (Voluntary Provident Fund)

  1. Any contractor who is separately covered, then the compliance under the EPF should be watched by the establishment who is hiring that contractor as a principal employer.

Any contractor who is not covered separately under the EPF MP Act, 1952, then the compliance of the provisions of the said EPF act is tobe done under the PF code of the establishment who is hiring the contractor being a principal employer.

Currently, India has entered into Social Security Agreement with following Countries:

Belgium

Germany

Switzerland

Grand Duchy of Luxembourg

France

Denmark

Republic of Korea

Netherlands

Hungary

Finland

Sweden

Czech Republic

Norway

Austria

Canada

Australia

Japan

Portugal

YES, International Workers are exempted if the worker holds passport of the Country with which India has signed a Social Security Agreement and/or member is contributing to a Social Security Programme of the Country with whom India has signed a Social Security Agreement.

Para (2) (ja) of Employee Provident Fund Scheme states:-

“International Worker” means-

(a)   An Indian Employee having worked or going to work in a foreign country which India has entered into a Social Security Agreement and being eligible to avail the benefits under a social security programme of that country, by virtue of the eligibility gained or going to gain under the said agreement;

(b)   An employee other than an Indian Employee, holding other than an Indian Passport, working for an establishment in India to which the Act Applies.

Accordingly, an Indian Establishment, having its coverage under Employees Provident Fund & Misc. Provisions, 1952 employing Foreign Workers are covered under the same. The coverage of the International Workers shall be from 1st November 2008.

Employer is liable to pay PF on or before 15th of the return month for wage month. If not paid then U/S 14-B employer has to pay damages according the percentage mentioned bellow at the rate mentioned.

 

Period of default

(Rates of Damages % of arrears PA)

1.

Less than two months

05

2.

Two months & above but less than four months

10

3.

Four months & above but less than six months

15

4.

Six months & above

25

 

Over and above employer is a liable to pay interest U/S 7Q @12% per annum.

*According to para 76 of the employees’ Provident Fund Scheme, 1952

       If any person

  • deduct or attempts to deduct employers’ share of contribution from employees’ salary in part    or whole share
  • Fails to remit employees’ share of contribution after it’s deduction.
  • Fails to submits the returns or submit false returns
  • Obstruct the inspector discharging his duties or fails to produce the record for inspection is guilty of contravention of non-compliance with any other requirement of the EPF scheme.

He shall be punishable with imprisonment which may extend to one year or with fine which may extend to four thousand rupees or with both.

Employers are liable for the following after getting registration with EPF:

  • Download Form-5 online and sign the same and to be submitted to the applicable EPFO.
  • PF dues to be paid on or before 15th of the preceding month or one can say on or before 15th of return monthly not wage month.
  • KYC of an employee to be seeded regularly.
  • Any application from an employee is pending for approval which is to be approved.
  • Digital signature later tobe generated online and submit the same in two copies to the allotted EPFO to activate the said digital signature.

After filing ECR, challan will be generated online so now to pay PF dues net banking is necessary. One cannot pay the same by depositing same though cheque in the bank. Online payment procedure is self-explanatory.

After getting registration establishment is liable to file monthly return i.e. online through http://unifiedportal-emp.epfindia.gov.in . To file return, preparation of ECR is necessary. However preparation of ECR should be as per guideline given at online portal because particular format is defined and under the same format ECR is to be uploaded.

PF dues has two contributions. One is employee’s contribution which is to be deducted from employee’s salary / wages and another is employer’s contribution which is to be added by the employer every month. However, employee’s contribution is 12% of the basic wage as per sec.2(b) of the act and employer’s share of contribution is also 12% of the basic wage as per sec.2(b) of the act. Over and above, employer has to bear 0.50% as administrative charges on EPF and 0.50% as EDLI (employer’s Deposit linked Insurance) Charges. So employer has to bear total 13% of basic wage as discussed above.

As such how to bifurcate the salary / wages of an employee is not defined in any of the acts, but when act is silent in any case decision should be taken on normal justification available and normal practice followed by the industry in practice or establishment  in practice.

While deciding the basic wage of an employee person should consider the definition of basic wage as per sec.2(b) of the act and contribution as per sec.6 of the act. But according to common understanding and various legal pronouncements PF should be deducted on earned basic and DA of an employee.

Below listed documents to be kept ready while registering  in soft copy.

  • PAN of the establishment
  • Any document to prove date of setup of the establishment.
  • Any license from the Govt. Dept. (You may add more than one license.)
  • Lease Deed / Rent Agreement if premises are hired

 Along with above soft copy bellow listed information should be kept handy to get fast registration:

Owner’s Detail

  • Full Name
  • Address (With Pin)
  • Date of Birth
  • Contact Number

Manager’s Details

  • Full Name
  • Address (With Pin)
  • Date of Birth
  • Contact Number

 

This Procedure is online so to get PF registration one should visit online portal at  the link https://registration.shramsuvidha.gov.in

Act is applicable to the establishment, which is a factory engaged in any industry specified in Schedule -1 of the Act, and in which 20 or more employees engaged.  And to any other establishment employing 20 or more persons.

EPF (Employee Provident Fund)  is a compulsory saving scheme designed by the union of India for it’s employees who is drawing basic wage upto the limit which is declared by the EPFO in official gazette. Said limit is as on day is RS. 15000. This saving scheme and other related scheme were framed by the union of India vide employees’ Provident Fund and misc. Provisions Act, 1952. Which act is applicable to whole India except Jammu and Kashmir.

Allocable Surplus = 67% of Gross Profit (60% for banking companies)
Gross Profit is calculated as per the First Schedule of the Act.

The Act restricts the maximum bonus to 20% of the Maximum Salary Limit (Rs. 7000 or MW whichever is higher). Anything beyond that should be paid as an ex-gratia payment.

Employees who have worked for at least 30 days in the year are entitled to a proportionate bonus, even if they resign or are terminated during the Financial Year.

Yes. If the employer has paid any advance or interim bonus during the accounting year, it can be adjusted against the final bonus.

Yes. Employers must file Form D annually, detailing bonus payments, submitted to the Office Of the Regional Labour Commissioner or (DyLC).

Yes, after the first 5 years from the year in which the company starts making a profit.

The employer must pay the bonus within 8 months from the close of the accounting year (usually by 30th November for the financial year ending 31st March).

Set On:
If the allocable surplus exceeds the amount required for the maximum bonus (20%), the excess is carried forward for up to 4 years. This can be used in years of low profit to pay bonuses.

Set Off:
If the allocable surplus is insufficient to pay the minimum bonus (8.33%), the shortfall is carried forward for up to 4 years and can be adjusted when there's surplus in future years.

Minimum bonus: 8.33% of the Maximum Salary Limit or Rs. 100 whichever is higher.
Maximum bonus: 20% of the Maximum Salary Limit.
Bonus is calculated on a maximum salary limit of Rs. 7,000 per month or the minimum wage whichever is higher.

  • Employees earning more than Rs. 21,000 per month.
  • Apprentices 

Employees are eligible if they:

  • Work in an establishment covered under the Act.
  • Earn a salary/wage of ?21,000 or less per month.
  • Have completed at least 30 working days in that accounting year.

The Act applies to:

  • Every factory and
  • Every establishment employing 10 or more (20 in some states) persons on any day during an accounting year.
     

The Payment of Bonus Act, 1965 ensures that employees receive a share of the profits of the organization as a bonus. It mandates payment of a minimum bonus to employees in specific establishments.

Sec 32 of the Act states that the Act shall not apply to certain classes of employees.

Clause (vi) of Sec 32 refers to "employees employed through contractors on building operation".

Aforesaid clause is repealed by the Payment of Bonus Amendment Ordinance, 2007 with retrospective effect from 1st April, 2006.

Yes, an employer can deny gratuity if an employee is dismissed due to:

  • Willful negligence or misconduct causing financial loss to the employer.
  • Conviction for an offense involving moral turpitude.

The Act applies to:

  • Employees in the establishments with 10 or more employees.
  • Once applicable, it continues to apply even if employee strength falls below 10.

As per the latest amendments, the maximum amount of gratuity payable under the Act is ?20,00,000.

Gratuity is calculated as:

Gratuity=(Last Drawn Salary×15×Number of Completed Years of Service26)\text{Gratuity} = \left( \frac{\text{Last Drawn Salary} \times 15 \times \text{Number of Completed Years of Service}}{26} \right)

  • Last Drawn Salary means Basic Pay + Dearness Allowance (DA).
  • 15 days' salary per completed year of service is considered.
  • A service period of 6 months or more is rounded up to the next year.

An employee is eligible for gratuity if they:

  • Have completed at least five years of continuous service with an employer.
  • Resign, retire, or are terminated.
  • In case of death or disablement during the course of employment, the five-year requirement is waived.

Gratuity is a statutory retirement benefit paid to employees as a token of appreciation for their continuous service. It is governed by the Payment of Gratuity Act, 1972 and is payable upon retirement, resignation, or death.

Yes, employees must be given a chance to explain before imposing any fine. Also, fines cannot exceed 3% of the employee's wages in a month.

The Act applies to employees earning wages up to Rs. 24,000 per month and working in factories, railways, industrial establishments, and other notified sectors.

The Payment of Wages Act, 1936, ensures timely payment of wages to employees without unauthorized deductions. It regulates wage payment to certain categories of employees and protects them from exploitation.

As such there is no such percentages are defined in any of the labour laws. But as per the provisions of the wage code 2019 declared; basic amount is tobe 50% of the gross wage. If you are paying something in kind then the value of it should not be more than 15% of the gross wage.

If your employment strength is below 1000 employees then your last date to pay salary/wages is 7th of the succeeding month. If 7th is holiday then 6th will be the last date to pay salary/wage. If your employment strength is more than 1000 employees, your last date to pay salary/wage is 10th of the succeeding month, If 10th is holiday then 9th will be the last date to pay salary/wage.

No, you are not allowed to pay salary/wages below the rate of minimum wage. However, if company is under severe financial crunch, company management may pay below minimum wage with the written consent of the employees.

No, you cannot reduce the basic once decided and disbursed. However, you can reduce employee’s basic under the punishment of his/her misconduct. Even you can reduce basic of an employee with his/her written consent.

No, employer cannot, unless and until under principles of natural justice you have given chance to the employee to represent and still employee is proved guilty of his/her misconduct. However, with the written consent of the employee, one can reduce employee’s salary.

Generally, below mentioned amount may be deductible from the wages/salary:

  • Amount of absented days.
  • Amount of Advances and Loan.
  • Amount of Statutory deductions viz. PF/ESI/PT/TDS.
  • Amount of any insurance premium.
  • Amount of Employees’ Co-Op. Soc. Contribution.
  • Amount of Canteen wage.

However, one should take care that, while deducting loan installment; employer should consider employee’s net salary, which should be atleast 50% of his/her gross salary.

  • Attendance Register Form – 1
  • Wages Register Form – 2 
  • Plan Approval Application
  • Building Stability Certificate
  • Application to Site Appraisal Committee
  • License Application
  • License Renewal Application
  • Certificate of Fitness for Young Person
  • Humidity Register
  • White Wash Register
  • Register of Worker Working Near the Moving Machinery
  • Report of Examination of Hoists
  • Report of Examination of Lifting Machine, Ropes and Lifting Tackles
  • Report of Examination or Test of Pressure Vessel or Plant
  • Report of Examination of Water Sealed Gasholder
  • Register of Compensatory Holidays
  • Over Time Register
  • Notice of Working Hours
  • Adult Worker Register
  • Leave Register
  • Leave Cards
  • Health Register for the workers who are engaged in dangerous operations u/s 87
  • Accident/Dangerous Occurrence
  • Accident/Dangerous Occurrence Form (for those who not bodily injured)
  • Notice to Display Abstract of Factories Act
  • Annual Consolidated Return
  • Test Report of Dust / Fume Extraction System
  • Certificate of Fitness
  • Accident Register
  • Special Certificate of Fitness (for worker working using LEAD Compound)
  • Visit Book
  • Health Register
  • Form of Health Checkup
  • Nomination Form
  • Identity Card Register
  • I. Card
  • Register of Workplace Monitoring

The licence is valid up to 31st December of the year upto which it has been granted.

Assistant Directors (DISH) are responsible for enforcement of aforesaid provisions, in the district(s) assigned to them under overall supervision.

In case of an accident involving bodily injuries and absence of a worker(s), the factory management is required to send a notice in Form 21 or Form 21A (as the case may be).

Factories Act, 1948 and Gujarat Factories Rules there under are applicable to any premises including the premises.

  • Where Ten or more workers are working or were working on any day of the preceding twelve months and in any part of which a manufacturing process is being carried on with the aid of power or is so ordinarily so carried on.
  • Where twenty or more workers are working or were working on any day of the preceding twelve months and in any part of which manufacturing process is being carried on without aid of power or is ordinarily so carried on
  • All the premises declared as a "Factory" by the State Govt. by notification under section 85 of the Factories Act. 1948 in the Official Gazette.

The licence requires to be amended when there is a change in the:

  1. Maximum horse power installed.
  2. Maximum number of workers.
  3. Change in name of the factory.
  4. Change in name of Manager or Occupier
  5. Change in Factory Map (Extention or addition of new rooms)

The Annual Return shall be sent to the Inspector of Factories on or before 31st January.

  • General duty is cast upon the occupier to ensure, so far as is reasonably practicable, the health, safety and welfare at work of all workers in the factory. Plant, systems of work; arrangements, the use, handling, storage and transport of articles and substances, means of access to and agrees from all places of work and working environment in the factory should be safe, without risks to health, adequate and they should be maintained and monitored so.
  • A written safety policy with respect to the health and safety of the workers at work could be prepared, revised and informed to all workers. Necessary information, instruction, training and supervision shall also be provided.
  • Where the workers employed in any factory engaged in a hazardous process have reasonable apprehension that there is a likelihood of imminent danger to their lives or health due to any accident, they may bring the same to the notice of the occupier, agent, manager or any other person who is in-charge of the factory or the process concerned directly or through their representatives in the Safety Committee and simultaneously bring the same to the notice of the Inspector.
  • It shall be the duty of such occupier, agent, manager or the person incharge of the factory or process to take immediate remedial action if he is satisfied about the existence of such imminent danger and send a report forthwith of the action taken to the nearest Inspector.
  • If the occupier, agent, manager or the person incharge referred to in sub-section (2) is not satisfied about the existence of any imminent danger as apprehended by the workers, he shall, nevertheless, refer the matter forthwith to the nearest Inspector whose decision on the question of the existence of such imminent danger shall be final.
  • To obtain from the occupier, information relating to workers health and safety at work;
  • To get trained within the factory wherever possible, or, to get himself sponsored by the occupier for getting trained at a training centre or institute, duly approved by the Chief Inspector, where training is imparted for workers health and safety at work;
    • To represent to the Inspector directly or through his representative in the matter of inadequate provision for protection of his health or safety in the factory.

No. Bonuses, allowances (Except HRA), and incentives are over and above the minimum wage.

No. Apprentices under the Apprentices Act, 1961 are not covered.

Yes. Overtime must be paid at twice the ordinary wage rate.

No. Any agreement to pay below the minimum wage is void under the law.

  • The Central Government fixes wages for sectors under its jurisdiction (e.g., Railways, Mines, Oilfields).
  • The State Government fixes wages for local industries and sectors under its control.

Any employee working in scheduled employment notified by the Central or State Government is covered. This includes both skilled and unskilled laborers in sectors like agriculture, construction, manufacturing, and services.

The Minimum Wages Act, 1948 ensures that workers are paid at least the minimum rates of wages as fixed by the appropriate government for different sectors, regions, and types of work.