Labour, Industrial laws (IEM) part-2

For part -1 visit below link

https://rahulsinghmar.blogspot.com/2020/04/labour-industrial-laws.html?m=1

Topic includes

- Employee Provident Fund

- Employee family pension scheme

- Minimum wages act

- Employee  state insurance

- Maternity Benefit act

- Bonus Act with its features 

Employee’s Provident Fund Act, 1952:

This Act provides a compulsory contributory provident fund for employees in factories and other establishments. It applies to all factories and other establishments falling under any notified industry and employing 20 or more workers. It prescribes the obligation of employers and employees and the authorities for implementation of the provisions.

It includes contract labour also. It also applies to educational institutions. The employer is required to deduct employee’s contribution from his wages and deposit the same in to the provident fund account along with employer’s contribution.

The amount standing to the credit of account holder is not liable for attachment under any court order. Nomination facility is available. The member can withdraw to certain extent from the fund account for the following purposes.

(i) To purchase or construct a property or house.

(ii) For alteration or modification of the house.

(iii) To meet expenses in case of illness, marriage of dependents, higher education of children etc.

Provident Fund is refunded with interest in the event of death, permanent disability, retrenchment, migration or leaving service. Depending upon the earning on these investments interest is allowed to the workers annually, on the amount to their credit.

Employees Family Pension Scheme:

The family pension scheme seeks to provide some monetary relief to the employees who die in service i.e. before super-annulation or after retirement. The contribution to this fund is deducted from employer s contributions to Provident Fund. Depending upon the contribution and last salary drawn, the pension amount after superannuation is determined for the person as per the scheme.

Minimum Wages Act, 1948:

It is an Act to provide for fixing minimum rates of wages in certain employments. It is meant to help the workmen to avail a fair bargain with their employees and ensure wages for them.

It lays down the procedure for fixing minimum wages and for appointment of advisory committees and boards. It prohibits wages in kinds. Time and conditions of payment of wages are stipulated. Only authorised deductions are accepted from the wages.

Working hours in case of an adult are fixed at 48 hours a week. Wages at the rate of double the time are to be paid for work beyond the normal hours. Registers and records are to be maintained under the Act are prescribed.

Employee State Insurance (ESI) Act, 1948:

This helps the employees from the hardships arising from sickness, maternity, invalidity, accidents occupational diseases etc. This provides the medical facilities and the employment insurance during illness to industrial workers.

The scheme is administered by the ESI Corporation, an autonomous body consisting of representatives of Central and State Governments, employers, employees, medical professionals and members of parliament.

This scheme applies to factories is that employ more than twenty people wherein the process is carried out by power. This does not apply to seasonal factories.

The finances of the scheme included contributions from employee, employer, and donations from State and Central Governments and local bodies.

The scheme offers the following advantages:

(i) Medical benefits.

(ii) Sickness benefits.

(iii) Maternity benefits.

(iv) Disablement benefits.

(v) Dependents benefits.

The scheme provides for medical care through dispensary system, hospital etc. When an insured person is suffering from a chronic long term disease like tuberculosis, he gets fairly extended medical care for almost a year after the normal entitlement. During medical treatment, the person is paid around half of his daily wage.

Maternity Benefit Act, 1961:

This Act regulates employment of women in certain establishments for certain periods before and after child birth and provides maternity and certain other benefits. The act is not applicable to women employees covered under ESI scheme.

A women employee is entitled to a maximum of 12 weeks maternity leave, 6 weeks before and 6 weeks after her delivery. She also gets a medical allowance of Rs. 250 if the employer does not provide for free prenatal and post-natal medical care. To avail these benefits she should have completed at least 60 days of service during the preceding 12 months.

Bonus Act, 1975:

This Act provides for the payment of bonus, related with profit or productivity to the employees in factories and establishments. Bonus is payable to all categories of employees drawing wages up to Rs. 4000 pm.

The important features of Bonus Act are:

1. Minimum Bonus was reduced to 4% and there was a condition that if the company did not earn any profit there would be no compulsion to pay minimum bonus also.

2. Negotiations out of the Bonus Act to get bonus in excess of 20% were sought to be curtailed.