CHECK LIST OF APPLICABILITY OF IMPORTANT LABOUR LAWS FOR BUSINESS ESTABLISHMENTS
(1) THE EMPLOYEES PROVIDENT FUND AND MISCELLANEOUS PROVISION ACT, 1952.
It applies to every establishment which is a factory engaged in any industry specified in Schedule-I of the act and in which 20 or more persons are employed. The Central Government by notification can bring in any other establishments employing 20 or more persons or less than 20 persons under the purview of this act.
FACTORY means any premises where a manufacturing process is being carried on with or without the aid of power.
The Central Government can add any other industry under Schedule-I for the purposes of this Act.
This act shall not apply to any establishment registered under the Co-operative Societies Act, 1912 or under any other Co-operative Society laws, employing less than 50 persons, and working without the aid of power.
The appropriate government may by notification in official gazette exempt any establishment from the operation of all or any of the provision of any scheme under this act.
(2) THE MATERNITY BENEFIT ACT, 1961
This act applies to every establishment being a factory, mine, plantation (private as well as Government) and to every establishment wherein persons are employed for exhibition of equestrian, acrobatic and other performance.
This Act also applies to every shop or establishment in which 10 or more persons are employed.
Nothing contained in this Act shall apply to any factory or other establishment to which the provisions of ESI act, 1948 apply.
The appropriate Government has powers to exempt an establishment or classes of establishment from the provisions of this act or any rule there under.
(3) THE CHILD LABOUR (PROHIBITION AND REGULATION) ACT 1986
The occupations and processes from which children are prohibited to be employed or permitted to work are listed in Part A and B of the Schedule under this Act.
The Part 3 of this Act will apply to those establishments where the occupation and processes mentioned in schedule to the Act are not applicable.
(4) THE PAYMENT OF WAGES ACT, 1936
This Act applies to persons employed in any factory (as defined under Factories Act, 1948) and to persons employed upon any railway directly or through a sub-contractor. This act also applies to persons employed in an industrial or other establishment specified in section 2 clause (ii) sub clauses a to g of the act.
This Act is applicable only to persons whose wages do not exceed Rs.6500/- per month.
(5) THE INDUSTRIAL DISPUTES ACT, 1947
Under this act “Industry” means any business, trade, undertaking, manufacture or calling of employers and includes any calling, service, employment, handicraft or industrial occupation or avocation of workmen.
“Industrial dispute” means any dispute or difference between employers and employers, or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour, of any person.
“Industrial Establishment or Undertaking” means an establishment or undertaking in which any industry is carried on.
“ Workman” means any person ( including an apprentice) employed in any industry to do manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and for the purposes of any proceeding under this act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of that dispute, or whose dismissal, discharge or retrenchment has led to that dispute, but does not include any such person:-
i) who is subject to the Air Force Act, 1950 or the Army Act, 1950 , or the Navy Act., 1957; or
ii) who is employed in the police service or as an officer or other employee of a prison, or
iii) who is employed mainly in a managerial or administrative capacity, or
iv) who, being employed in a supervisory capacity, draws wages exceeding one thousand six hundred rupees per month or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature.
(6) THE EQUAL RENUMERATION ACT, 1976
The term employer under this act has the meaning assigned to it in Sec.2 (f) of the payment Gratuity Act, 1972.
(7) FACTORIES ACT, 1948
1) Under this act “Factory” means any premises where
i) 10 or more workers are working or were working on any day of the preceding 12 months and in any part of which a manufacturing process is being carried on with the aid of power.
ii) where 20 or more workers are working or were working on any day of the preceding 12 months and where a manufacturing process is being carried on with out the aid of the power.
2) The term factory does not include a mine, a mobile unit belonging to the armed forces of the Union, the railway running shed or a hotel, restaurant or a eating place.
(8) WORKMEN’S COMPENSATION ACT 1923
Under this act workman is defined under section 2 (n). Workman is any person who is:
i) a railway servant, as defined in Sec (3) of Indian Railways Act, not permanently employed and not employed in any capacity as specified in Schedule 2.
ii) a master seaman, or other member of the crew of the ship,
iii) a captain or other member of the crew of an aircraft.
iv) a person, recruited as a driver, helper, mechanic, cleaner or any other capacity in connection with a motor vehicle.
v) a person recruited for a work abroad by a company and who is employed outside India in any such capacity as specified in Schedule 2 and the ship, aircraft or motor vehicle or the company is registered in India.
vi) a person employed in any capacity as specified in Schedule 2 of the act but does not include any person working as a member of the armed forces of the Union.
vii) The Schedule 2 of the act gives a list of persons who are workmen as per the act.
(9)THE EMPLOYMENT EXCHANGES (COMPULSORY NOTIFICATION OF VACANCIES) ACT 1959:
This act applies to all public sector establishments and private sector establishments where 25 or more persons are employed. Agriculture, horticulture, domestic service and skilled office work etc do not come under the purview of this act.
(10) THE PAYMENT OF BONUS ACT 1965
This act applies to every factory and every other establishment in which 20 or more persons are employed on any day during an accounting year. An establishment to which this act applies shall continue to be governed by this act even if the number of persons employed is below 20.
In certain cases the act will be applicable to establishments in public sector .If a public sector establishment derives income by the sale of any goods produced or renders any services and if the said income is not less than 20% of the gross income of the establishment for that year, then provisions of the act will apply to that establishment.
This act is not applicable for the following employees:-
1. Employees of LIC.
2. Seamen.
3. Employees registered under any scheme under Dock Workers (Regulation of Employment) Act 1948.
4. Employees of Central or State Government industries.
5. Employees of Indian Red Cross Society or University or educational Institutions or non profit Institutions.
6. Employees of RBI.
7. Employees of Industrial Finance Corporation of India, State financial corporation, Deposit Insurance Corporation, NABARD, UTI, IDBI, SIDBI, NHB.
8. Employees of Inland Water transport establishments operating on routes passing through other countries.
(11) THE PAYMENT OF GRATUITY ACT, 1972
This act applies to every factory, mine, oil field, plantation, port, Railway Company, shops and establishment where 10 or more persons are employed.
12) THE MINIMUM WAGES ACT, 1958
The Part I and II of the Schedule attached to this Act lists the employments for which the appropriate government can fix the minimum wages payable to employees.
(13) THE KARNATAKA SHOPS AND COMMERCIAL ESTABLISHMENTS ACT, 1961
This Act applies for Shops and Commercial establishments in the State of Karnataka.
Commercial Establishment means a commercial or trading or banking or insurance establishment, an establishment or administrative service in which persons employed or mainly engaged in office work, a hotel, restaurant, boarding or eating house, a cafe or any other refreshment house, a theatre or any other place of public amusement or entertainment and includes such establishments as the State Government may by notification declare to be a commercial establishment for the purposes of this Act.
Shop means any premises where any trade or business is carried on or where services are rendered to customers and includes offices, storerooms, godowns, or warehouses, whether in the same premises or otherwise, used in connection with such trade or business, but does not include a commercial establishment or a shop attached to a factory where the persons employed in the shop fall within the scope of the Factories Act, 1948.
(14) THE EMPLOYEES STATE INSURANCE ACT, 1948:
This act shall apply to all factories (including Government factories) other than seasonal factories.
“Factory” means any premises including the precincts thereof:
i) whereon 10 or more persons are employed or were employed for wages on any day of the preceding 12 months and in any part of which a manufacturing process is being carried on with the aid of power or is so ordinarily carried on, or.
ii) Wherein 20 or more persons are employed or were employed for wages on any day of the preceding 12 months and in any part of which a manufacturing process is being carried on with the aid of power or is ordinarily so carried on, but does not include a mine or railway running shed.
The appropriate government has the power to exempt factory or establishment or class of factories or establishments or person or class of persons from the operation of the act.