Labour Laws

includes

All remuneration other than over- time and includes DA

Does not include :

1. Any other allowance which the employee is for the time being entitled to
2. The value of house accommodation or of supply of light, water medical attendance or other amenity or of any service or of any concessional supply of foodgrains or other articles.
3. Any travelling concession
4. Any Bonus (including incentive, production and attendance Bonus)
5. Any contribution paid or payable by employer to any pension fund or PF
6. Any retrenchment compensation Gratuity or Ex gratia payment
7. Any commission payable to the employee.

1. Every factory (as defined in Factories Act).
2. Every other establishment in which 20 or more persons (less than 20 but 10 or more if app. Govt. notifies) are employed on any day during the accounting year. (In Maharashtra State it is applicable where 10 or more employees are working in any establishment or factory w.e.f. 11-4-1984)
3. Special provisions with respect to certain establishments are provided
4. Employees employed through contractors on building operation.

1. Who have worked not less than 30 days in an accounting year.
2. Having salary/wages less than ₹ 21,000/- per month

1. Subject to provisions:- Minimum bonus shall be 8.33% of salary / wages earned or ₹ 100 whichever is higher .
2. If allocable surplus as computed under the Act exceeds the amount of minimum bonus, then bonus shall be payable at higher rate subject to a maximum 20% of salary / wages.
3. Customary bonus paid is deductible.
4. For persons drawing salary greater than 7,000/- per month calculation of bonus has to be done on the basis of ₹ 7,000/- per month or as per State Minimum Wages applicable for scheduled employment; whichever is higher

1. Computation of bonus is to be worked out as per Schedules I to IV of the Act.
2. Records in Form Nos. 'A', 'B' & 'C' are to be maintained.
3. Annual Return in Form 'D' to be filed.
4. Bonus must be paid within a period of 8 months from the close of accounting year.

include :

1. All emoluments earned by the employee while on duty or on leave including DA,

Does not include:

Bonus, Commission, HRA, overtime wages and any other allowance.

1. Every factory (as defined in Factories Act), mine, oilfield, plantation, port and railway company.
2. Every shop or establishment to which Shop and Establishment Act of a State applies in which 10 or more persons are employed on any day of the preceding 12 months.
3. Any establishment employing 10 or more persons as may be notified by the Central Government.

1. Any person employed on wages (other than apprentice)
2. At the time of retirement/ resignation on superannu-ation, an employee should have rendered continuous service of not less than 5 years.
3. Presently, maternity leave of 12 weeks in case of female employees is included in the computation of period of "continuous service". An amendment has been carried out to grant power to Central Government to notify the period of maternity leave in place of existing 12 weeks. This period has been presently notified as 26 weeks. [Payment of Gratuity (Amendment) Act, 2018]
4. In case of death or disablement, the gratuity is payable even if he has not completed 5 years of service.

1. The quantum of gratuity is to be computed at the rate of 15 days wages based on the rate of wages last drawn by the employee concerned for every completed year of service or a part thereof in excess of 6 months.
2. The total amount of gratuity payable shall not exceed 
   ₹ 10 lakhs. w.e.f. 24-5-2010. It is now provided to empower Central Government to notify the maximum ceiling from time to time instead of specifying the existing limit of ₹ 10 lakhs. The Government has presently notified the maximum amount to be ₹ 20 lakhs. [Payment of Gratuity (Amendment) Act, 2018]
3. In case where higher benefit of gratuity is available under any gratuity scheme award or agreement, the employee will be entitled to higher benefits.

1. Employers other than Central Govt. or State Govt. obliged to obtain an insurance from LIC in prescribed manner for liability for payment of gratuity.
2. Establishments to which Act applies must get registered with the controlling Authority.
3. Once Act applies, it continues to apply even if employment strength falls below 10.
4. Calculation of Gratuity: Monthly salary / 26 x 15 days x No. of years

For contravening provisions of the Act or Rules, punishable with imprisonment for a maximum period of 1 year and minimum period of 3 months or fine ranging from 
₹ 10,000 to ₹ 20,000 or both.

For non-payment of gratuity, punishable with imprisonment for not less than 6 months and not more than 2 years.

includes: All remuneration capable of being expressed in terms of money like

1. Basic wages, D.A. value of free food or food allowances in lieu of whole or part of the wages, overtime, and other allowances,
2. Value of House accommodation, supply of light and water, medical attendance or other amenities or any service or of any conces- sional supply of food grains or other articles,
3. Value of travelling concession,
4. Any commission payable on promotion of sales or business or both.

Does not include:

1. Any Bonus
2. PF, Pension or Gratuity

Such disputes are dealt by the authorities prescribed under the Act.

Establishment of Grievance Redres- sal Machinery in every Industrial Establishment employing 20 or more workmen.

Certain mandates :

1. Mandatory requirement in case of closure of an undertaking :–
1. 60 days notice to the Govern- ment for intended closure in Form No. XXIV-B under Sec. 25FFA if employing more than 50 workmen but less than 100 workmen
2. Application for prior permis- sion of at least 90 days in Form XXIV-C to the Govt. when there are 100 or more workmen during preceding 12 months under S. 25-O
2. Mandatory provision concern- ing retrenchment of workmen, compensation to be paid and other conditions:
1. Women must have worked for 240 days
2. Retrenchment compensation @15 days wages per every completed year to be calculated on last drawn wages inclusive of allowances.
3. Days wage worked taking 26 not 30 days
4. One month notice or wages in lieu thereof
5. Reasons for retrenchment
6. Complying with principle of 'last come first go'
7. Maintenance of seniority list at least 7 days in advance.
8. Sending of notice in Form XXIV to the Secretary, Government of Maharashtra.
3. Notice of change under S. 9A:- 21 days notice is required to be given by an employer to the workmen about changing the conditions of service as provided in Schedule IV in Form XXVII.
4. Prior Permisssion for lay off : When there are more than 100 workmen during preceding 12 months under S. 25M
5. Prior permission for retrenchment :-When there are more than 100 workmen during preceding 12 months under S. 25N Rajasthan Amendments
   In section 2(A), a new sub-section shall be added:

The Criteria for applying for registration as a representative union is enhanced from 15% to 30% membership to minimise inter union rivalry and bring harmonious industrial relations between the employer and the workmen.

The employer need not seek permission from the appropriate government for retrenchment of up to 300 workers, whereas at present according to the Act it allows only up to 100 workers.

All emoluments earned while on duty or on leave and holidays

Does not include :-

Value of food concession, DA, HRA, overtime allowance, any Bonus, Commission or similar allowance. contribution is payable on D. A. also as per sec. 6 of the Act

1. Every establishment which is a factory engaged in any industry specified in Schedule I and in which 20 or more persons are employed and
2. Any other establishment em- ploying 20 or more persons, whom Central Govt. may, notify.
3. Any establishment employing even less than 20 can be covered by a specific Central Govt. noti- fication.

In case of International workers, PF is applicable on entire salary. As per notification dated 1st Oct., 2008.

1. Once the Act applies it continues to apply even if employment strength falls below 20.
2. Periodical returns have to be filed under the Act monthly returns before 25th of the following month.
3. Inspection Note book has to be maintained.
4. The Employees' Pension Scheme 1995 also applies w.e.f. 16-11-1995
5. Provident Fund deduction to be paid before 15th of the following month.

Any Privilege or benefit which is being capable of being estimated in money, other than travelling allowance or the value of travelling concession or a contribution paid by the employer of a workman towards any pension or PF or a sum paid to a workman to cover any special expenses entailed on him by the nature of his employment.

1. Employer includes any person whether incorporated or not and any agent of employer and when services are temporarily lent or let on hire to another person, then means such other person.

1. Where death results from injury, 50% of monthly wages [if monthly Wages > 
   ₹ 8,000/- p.m. cap of 
   ₹ 8,000/- (2012)] x relevant factor or ₹1,20,000/- whichever is more.
2. Where permanent total disablement results from injury 60% of monthly Wages [if monthly Wages > ₹8,000/- p.m. cap of ₹ 8,000/-(2012)]x relevant factor or ₹1,40,000/- whichever is more
3. Relevant factor, which is dependent upon age of employee, ranges from 228.54 to 99.37. With effect from 18-1-2010

1. Any contract by a worker waiving his right to be compensated under this Act is null and void.
2. The intention of the Legislature and the circumstances under which law was enacted is to be seen. It is interpreted in favour of the weak.
3. Notice book is to be maintained. A statement, report and a return is to be filed when applicable
4. In case of fatal accident, pay- ment of compensation to the dependent of a workman is to be made through Commissioner of Workmen's Compensation
5. Employer is under an obligation to inform the employee, at the time of employment, his right to compensation under this Act. [The Employee's Compensation (Amendment) Act, 2017]

include :

1. All remuneration paid or pay- able in cash to the employee including payment in respect of period of authorised leave, lock- out, strike which is not illegal or lay-off
2. Other additional remuneration paid at interval not exceeding 2 months

1. Contribution to PF, Pension or Gratuity payable on discharge,
2. Any travelling allowances or value of any travelling concession,
3. Sums to be defray special expenses by nature of employment.

1. All factories excluding seasonal factories
1. Employing 10 or more persons if working with power.
2. Employing 20 or more persons if working without power.
2. Shops employing 20 or more persons.
3. Any establishment specially notified by the Government.

1. Any person employed for wages (up to ₹ 21,000/- p.m. in or in connection with the work of a factory or establishment, and
2. Any person who is directly employed by the employer in a factory or through his agent on work which is ordinarily part of the work of the factory or incidental to purpose of the factory.

3. An 'insured woman' shall include a commissioning mother who as biological mother wishes to have a child and prefers to get embryo implanted in any other woman as well as a woman who legally adopts a child of up to three months of age.
4. Rate of contribution of the wages:
   For Employer - 4.75%
   For Employee - 1.75%
5. Contribution period :- 1st April to 30th September/ 1st October to 31st March
6. Benefit period 1st January to 30th June/ 1st July to 31st December
7. Date of submission of return:- Within 42 days from the end of contribution period.

1. The following benefits are provided: Sickness benefit, maternity, disablement, dependent, medical, and funeral expenses Rehabilitation allowance Cannot receive 2 benefits for same period.
2. Free medical treatment is offered. to employees and his family at hospital & dispensaries run by ESI Corporation
3. During sickness, an employ- ee will receive wages as per standard benefit rate shown in the table.
4. Maternity benefits for 26 weeks of which not more than 8 weeks should be preceding confinement
5. Injury during / in course of employment resulting in temp. / permanent disablement entitles covered employee to regular pay.
6. Death during the course of em- ployment entitles dependents to regular payment
7. One time payment of 
   ₹ 5,000/- to help meet funeral expenses
8. Unemployment allowance to a member who has contributed minimum period of 5 years prior to loss of employment.
9. Payable till re-employed else- where (maximum 12 months period)

1. Once the Act applies it continues to apply even if employment strength falls below 20 /10
2. Register of employees is to be maintained in Form 6 (Regulation 32)
3. Reports and Returns have to be filed as applicable.

As per notification dated 11-3-2008 employer employing 40 and more employees have to append a duly certified by C.A in revised format of return. In case of below 40 employees certificate by employer.

Payment of simple interest @12% p.a. or higher rate till date of actual payment. Interest recoverable as arrears of land revenue under sections 45-C to 45-I

For various offences : An employer may be punished with fine from ₹2 ,000 / - to 
₹ 25,000/- and / or imprisonment from 6 months to 5 years

On failure by an employer to pay his contribution the ESIC can recover the same as an arrear of land revenue.

1. Have been members of the Employees' Pension Scheme, 1971.
2. On or after 16-11-1995 become members of employees P.F. Scheme, 1952.
3. Who have been members of the Employees P. F. Scheme, 1952 opt to join within 6 months from 16-11-1995.

1. Members
2. Heirs will be paid the pension as per the Scheme provided in the Rules.

1. To members – Superannuation pension, retiring pension or permanent total disablement pension.
2. To heirs – widow or widowers pension, children pension or orphan pension. Guardian pension, Nominee pension as per the scheme provided in the rules.

includes :- All remuneration being expressed in terms of money including:

HRA - Does not include :-

1. Value of House Accommodation supply of light, water, medical attendance.
2. Any other amenity or any service, excluded by an order of the appropriate Government.
3. Any sum paid to defray special expenses entitled due to nature of employment
4. Any travelling allowance or any value of travelling concession.
5. Any Gratuity payable on dis- charge

1. Register of wages to be maintained at workspot in prescribed forms. Such records to be preserved for 3 years from the time of last entry made therein.
2. Normal working day prescribed under the Act is 9 hours.

includes :-

1. All remuneration by way of salary or allowance capable of being expressed in terms of money.
2. Payable under any award or settlement.
3. On account of overtime, holidays, leave, production, attendance, bonus etc.
4. Payable by reason of termination which does not provide for the time within which the payment is to be made.
5. To which the person employed is entitled under any scheme framed hereunder any law for the time being in force.

1. Bonus (whether under a scheme of profit sharing or otherwise) which doesn't form part of re- muneration payable under the terms of employment or which is not payable under the Award
2. Value of house accommoda- tion or of light, water, medical attendance or other amount or of any services excluded from the computation of wages by the Government.
3. P. F. and Gratuity
4. Travelling allowance
5. Any sum paid to defray special expense due to nature of his employment

1. Every person employed in any factory, upon any railway or through sub-contractor in a railway and a person employed in an industrial or other establishment
2. The State Government may by notification extend the provision to any class persons employed in any establishment or class of establishments.

1. Regular and timely payment of wages. Specified day after last day of the wages period in respect of which wages are payable are :
1. 7 days for railways, factory, Industrial or other establishment employing less than 1,000 workers
2. 10 days for other than persons stated in (i) above
3. In case of termination of employ- ment, the wages must be paid before the expiry of the second working day from the day of termination.
2. Prevents unauthorised deduc- tions being made from wages and charges of arbitrary fines.

1. Wages to be paid in current coin of currency or by crediting the wages in the bank account of employee. Central Government has the power to specify industrial or other establishments where payment of wages will be made by banking only.
2. Deductions cannot exceed 75% of wages for payment to co-op. Societies, and 50% in other cases.
3. Registers/records in Form Nos. I, II, III & IV to be kept for 3 years from last entry (If muster roll cum wage register in Form No. II as per Maharashtra Minimum Wages Rule is maintained the above registers are not required to be maintained).

(i) In the case of a firm or association of individuals, a partner or members of the firm or association;

(ii) In the case of a company, a director of the company;

(iii) In the case of an establishment owned or controlled by the Central Government or a State Government or any local authority, the person or persons appointed to manage the affairs of such establishment by the Central Government or the State Government or the local authority, as the case may be

b) Establishments employing 10 or more workers (except section 7)

c) Section 7 applies to establishments employing less than 10 workers

Non-Applicability :

a) Factories to which the Factories Act is applicable (Section 1 read with definition of the terms "establishment" and "shop" )

b) Establishments of Central and State Government, Local Authorities, Mumbai Port Trust, Railway Administration

c) Offices of Reserve Bank of India, Trade Commissioner and of Consular officers and other Diplomatic representatives of Foreign Government

d) Offices of Air service companies

e) Establishments used for treatment or care of mentally unfit or infirm or destitute

f) Establishments pertaining to any kind of educational activities excepting those where coaching or tuition classes are conducted by individual persons or any institutions other than those,–

(i) affiliated to any university established by law, or

(ii) recognised by the Divisional Boards under the Maharashtra Secondary and Higher Secondary Education Boards Act, 1965, or

(iii) recognised by the Directorate of Education or the Directorate of Technical Education as a private secondary or technical high school, Industrial Training Institute (I.T.I.), Polytechnic, Engineering Colleges or other technical institutions conducting courses recognised by Government)

g) High Court Law libraries and other Courts Law Libraries

h) A worker occupying position of confidential, managerial or supervisory character in an establishment, a list of which shall be displayed on the website of establishments and in absence of the website at a conspicuous place in the establishment and a copy thereof shall be sent to the facilitator

i) A worker whose work is inherently intermittent

j) A member of the family of an employer

State Government has the power to notify such classes of establishments to which this Act will apply with such modifications as may be necessary.

1. The state government may fix, opening and closing of different classes of establishments and for different premises, shopping complex or mall or for different area or areas and for different period.
2. No adult worker shall be required or allowed to work for more than 9 hours in any day and 48 hours in any week.
3. Payment of overtime wages at twice the rate of ordinary wages in respect of overtime work.
4. The total number of overtime hours shall not exceed 125 hours in a period of 3 months.
5. No adult worker shall be asked to work continuously for more than 5 hours unless he has been given a break of not less than half an hour. However, the working hours or weekly holiday may be relaxed in case of urgent work with the previous permission of the facilitator.
6. The spread-over of a worker shall not exceed 10 ½ hours in any day. The same is extended to 12 hours in case of urgent work.
7. Mandatory leave of one day in week. Any work required to be undertaken by a worker on holiday will entail wages at twice the ordinary rate.
8. Period of shift to be informed to workers well in advance.

Prohibition of discrimination against woman worker

9. The Act prohibits the discrimination of women workers in matters of recruitment, training, promotion, and wages.
10. Generally, woman worker will be required to work only between 7 a.m. to 9:30 p.m. Woman may choose to work beyond these hours, provided the work space is safe and transport is made available for her to commute back to her residence.
11. State Government has right to regulate employment of women in certain class of establishments such as hotels, restaurants, residential hotels,permit rooms, bars, spa-massage parlours, lodges or any business or any trade or occupation in such area or areas as it may deem fit

Holidays and Leave

12. Workers are entitled to 8 casual leaves in a year.
13. They may accumulate a maximum of 45 days of paid leave during a year
14. Every worker who has worked for 240 days or more in a calendar year will be entitled to paid leave for a number of days calculated at the rate of one day for every 20 days of work performed during the previous year.
15. Workers are also entitled to 8 paid festival holidays in a year.

Other welfare provisions

Employer is required to provide:

16. First-aid facilities in the place of work;
17. At suitable points conveniently situated for all persons employed in the establishment, a sufficient supply of wholesome drinking water;
18. Sufficient latrine and urinal for men and women
19. Maintain a suitable room or rooms as crèche for the use of children of workers (in case of establishments employing 50 or more workers);
20. Maintain a canteen for the use of its workers for establishments employing not less than 100 workers;

1. Establishments that employ more than 10 workers must obtain a licence under the Act within 60 days of the new Act coming into effect (20th December, 2017) or commencement of business. The registration can be done online. An establishment can determine the validity period of its registration, which cannot exceed 10 years. Establishments employing less than 10 workers are also required to register under the Act but do not require a licence.
2. Change in particular of establishments to be communicated to facilitator
3. Closing to be notified within 30 days to facilitator (Section 10)
4. Register and other records to be maintained (Section 25).
5. Annual return to be filed (section 26)

1. Registration may be cancelled if the same is obtained through misrepresentation or suppression of material facts or by submitting false or forged documents or false declaration or by fraud.
2. Contravention of provisions – fine up to 
   ₹ 1 lakh
3. Continued contravention of – fine up to ₹ 2,000/- every day.
4. Subsequent contravention – fine up to ₹ 2 lakh. Total fine shall not exceed ₹ 2,000/- per worker employed
5. Contravention resulting in death of worker – imprisonment of up to 6 months or fine not less than ₹ 2 lakh but which may extend to ₹ 5 lakh or both
6. Obstructing a Facilitator or refusing to provide register etc. - fine of up to ₹ 2 lakh. Total fine shall not exceed ₹ 2,000/- per worker employed
7. Provisions for compounding of offences prescribed. (section 33)

Any establishment within the meaning of the Bombay Shops and Establishments Act, 1948 (Bom. LXXIX of 1948) which employs, or on working day during the preceding twelve months, employed five or more persons (including the Establishments

which have been granted exemption partly or wholly under the proviso to section 4 of the Act.

Person who is employed for hire or reward to do any work skilled or 
unskilled manual, clerical, supervisory or technical in an establishment directly by the employer or through contractor or any other agency, but does not include any person –

1. Who is employed in a managerial capacity;
2. Who being employed in a supervisory capacity, draws wages exceeding three thousand five hundred 
   rupees per mensem. or exercises powers 
   or carries out, 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 or,
3. Who is employed as an apprentice under the Apprentices Act, 1961 (52 of 1961).

Employees drawing less than 
₹ 3,000/- per month ₹ 6/- and 
employers contribution ₹ 18/- and employees drawing more than 
₹ 3,000/- ₹ 12/- and employers contribution ₹ 36/.

be served a notice on such 
employer to the amount within the period specified therein, which shall not be less than 30 days from the date of service of such notice.

Any sum payable (to the Board or) under this Act shall, without prejudice to other mode of recovery, or be recoverable on behalf of the Board as an arrear of revenue.

1. Whereon ten or more workers are working is being carried on with the aid of power.
2. Where on twenty or more workers are working in the manufacturing process without the aid of the power The threshold of the number of workers employed for being applied from 10 to 20 workers with the aid of the power and from 20 to 40 workers without the aid of the power.*

• Compulsory approval, licensing and registration of factories
• Health Measures
• Safety Measures
• Welfare Measures
• Working Hours
• Employment of Women and Young persons
• Annual leave provisions
• Accident and occupational diseases
• Dangerous operations
• Penalties
• Obligations and rights of 
  employees

1. Compulsory Approval:- The occupier or manager of a factory coming within the scope of the Act has to 
   apply to the Chief inspector of 
   Factories for getting the factory registered and obtaining a licence for it. The licence so granted can be amended, renewed, revoked or suspended as per the rules. (Section 6 and Rules 5 to 13 deals with these provisions)
2. Notice of change of 
   Manager – Whenever a new manager 
   is appointed, the occupier shall send to the (inspector a written notice and to the Chief Inspector a copy thereof within seven days from the date on which such person takes over charge.
3. General duties of the occupier- Every occupier shall ensure, as far as is reasonably practicable,
1. The health, safety and welfare of all workers while they are at work in the factory.
2. Provide and maintain plant and systems of work in the factory that are safe and without risk to health
3. Make arrangements for ensuring safety and absence of risks to health in connection with the use, handling, storage and transport of articles and substances
4. Provide necessaryinformation, instruction, training and supervision as are necessary to ensure the health and safety of all workers at work
5. Maintain all places in the factory in a condition that is safe and without risks to health

With reference to the GR dated 14th November 2014, on receipt of 
application complete in all respect, the licensing officer shall issue licence within three working days from the date of receipt of an application. If the application is not issued in three working days it shall be deemed to have been granted and the copy of the receipt of application with copy of payment of fees shall be treated as licence or renewal certificate.

of licence applied for, register the factory and issue a licence in Form 4, within three working days to the applicant to use as factory such premises as are specified in the application and subject to compliance with the following conditions:-

1. The plan of factory building shall get approval as per Rule 3.
2. The conditions subject to which the plans are approved shall be complied with.
3. The compliance of the schedule prescribed under 114 shall be complied with.
4. Effective measures shall be taken to avoid accidents or injury to persons due to machinery, process and raw materials like explosives, flammable and toxics.
5. The stability of factory building shall be certified from competent person as per Rule 3-A.
6. Conditions subject to which the licence is issued shall be complied within a period of twelve months from the date of issuance.

In every factory provision for cool and safe drinking water during hot weather by effective means.*

*Sec 46: Canteens.

Earlier factories with more than 250 workers were required to provide

canteens for their workers, that threshold has been reduced to 200 workers .

*Sec 47: Shelters, rest rooms and lunch rooms.

The threshold to provide shelters, rest room and a lunch room has been reduced from factories employing 150 workers to those employing 75 workers & should be separate for male and female workers.

*Sec. 64: Power to make exemption rules.

The overtime in factories have been increased from 50 to 100 hours in any quarter. Rules in this regard may be prescribed by both Central and State Government [Factories (Amendment) Bill, 2016]

Sec. 65: Power to make exempting orders:

Total number of hours of overtime work in any quarter by any worker shall not exceed 115 hours. State or Central Government may raise it to 125 hours if the same is in public interest. [Factories (Amendment) Bill, 2016]

*Sec. 66: Further restrictions on employment of women.

Employing women on night shifts.

Factory management may begin such a shift after consulting the workers.

Factory must arrange for transport for the female workers from the factory premises to the doorstep of their residences.

Pregnant women and those returning from maternity leave cannot be forced to work night shifts.

*Sec. 79: Annual Leave with wages.

The annual leave wages criteria is reduced to 90 days which was previously 240 days.

General Penalty for offences:

The manager and the occupier of the factory shall be guilty of an offence and punishable with 
imprisonment for a term of two years or with fine which may extend to Rupees Three lakhs previously it was Rupees One lakh or with both and in any case it shall not be less that Rupees Thirty Thousand.*

"Apprentice" means a person who is undergoing apprenticeship training in pursuance of a contract of apprenticeship.

1. To provide apprentice with the training in his trade in accordance with the provision of the Act.
2. If the employer himself is not qualified in the trade, to ensure that a person who possesses the prescribed qualification is placed in charge of the apprentices.
3. To provide adequate instrunctional staff, possessing such qualification as may be prescribed for imparting practical knowledge and theoretical training and facilities of the trade test of the apprentices.
4. To carry out his obligation under the contract of apprenticeship.

1. To attend classes regularly.
2. To carry out lawful orders of his employer and superior.
3. To carry out his obligation under the contract of apprenticeship.
4. To learn his trade conscientiously and diligently and endevour to 
   become a skilled craftsman.

During the 1st year of training 70% of the minimum wages of the semi skilled workers notified by the 
respective States.

During the 2nd year of the training 80% of the minimum wages of the semi-skilled workers notified by the respective States.

During the 3rd and 4th year of the training 90% of the minimum wages of the semi-skilled workers notified by the respective States.

Vide Notification dated 22nd 
September, 2014.

If any employer-

1. Engages as an apprentice a person who is not qualified for being so engaged, or
2. Fails to carry out the terms and conditions of a contract of apprenticeship, or
3. Contravenes the provisions of this Act relating to the number of apprentices which he is required to engage under those provisions.

He shall be punishable with 
imprisonment for a term which may extend to six months or with fine or with both.

It applies to every establishment employing Female Employee.

Constitution of IC (Internal Committee):

Every employer of a workplace shall constitute a committee known as IC.

1 Presiding Officer shall be woman at senior level.

Not less than 2 members amongst employees preferably committed to the cause of women.

1 member shall be among non- governmental organisation.

At least one half of the IC members should be women.

The presiding Officer and every member of IC shall hold the office not exceeding three years.

Local Committee (LC):

The appropriate Government may notify a District Magistrate or Additional Magistrate or the Collector or Deputy Collector as a District Officer for every District to exercise powers or discharge functions under this Act.

Composition:

A chairperson to be nominated amongst eminent women in the field of social work.

One member to be nominated from amongst the women working in block, taluka or ward or municipality in the district.

Any aggrieved women may make in writing a complaint of sexual harassment at the workplace to the IC or LC, if in case IC is not constituted within a period of three months from the date of incident & in case of series of incidents, within a period of three months from the date of last incident.

For the purpose of making an inquiry under the Act, the IC or the Local Committee as the case may be shall have the same powers as are vested to a civil court, under the code of civil procedure.

1. Summoning and enforcing the attendance of any person and examining him on oath.
2. Requiring the discovery and the production of documents.
3. Any other matter which may be prescribed.

During the pendency of an inquiry, the Internal Committee, as the case may be recommend to the employer:-

Transfer the aggrieved woman or the respondent to any other workplace; or

1. Grant leave to the aggrieved woman up to a period of three months; or
2. Grant such other relief to the 
   aggrieved as may be prescribed
3. The leave granted to the aggrieved woman under this section shall be in addition to the leave she would be otherwise entitled.

Committee to submit annual report:

The Internal Committee or the Local Committee, as the case may be, shall in each calendar year prepare, in such form and at such time as may be prescribed, an annual report and submit the same to the employer and the District Officer.

The appropriate Government has notified Deputy Collector as a District Officer to exercise powers and discharge functions under this Act.

The employer is punishable with a fine of Rupees Fifty Thousand if he fails to comply. Second Offence punishment doubled and possibility of cancellation of licence.

1. To constitute an Internal 
   Committee .
2. To take action under sec 13: Inquiry Report.

Sec. 14: Punishment for false or malicious complaint and false evidence.

Sec. 22: Employer to include 
information in annual report.

The Act is applicable to

1. Every establishment employing twenty or more workmen as contract labour.
2. To every contractor employing twenty or more workmen.

Rule 21 addition.

Every application shall be accompanied by an undertaking by the contractor regarding information of the applicant (contractor) whether he is minor ; is of sound mind and stand so declared by a competent court, he is an undischarged insolvent; has been convicted during the period of 5 years immediately preceding the date of application in the opinion of the government which involves moral turpitude. Whether an order of Government or an award or settlement for the abolition of contract labour in the establishment in relation to the contractor.

Rule (23)(I) sub-rule shall be 
susbstituted .

" (I) On the receipt of the application complete in all respects, the licensing officer shall issue the licence within three working days from the date of the application and if the licence is not issued within the said three working days, it shall be deemed to have been granted and the copy of the receipt of the application with the copy of payment of receipt shall be treated as Licence or renewal certificate.

Rule (24)

The Security amount for each workman to be employed as contract labour has been enhanced from 
₹ 100 to ₹ 500. In case where the contractor is a co-operative society, the amount deposited as security shall be increased from ₹ 50 to ₹ 250.

Rule (26)

The fees to be paid for granting a Certificate of Registration under section 7 shall be ₹ 5,000.

Sec 1(4).

It shall apply

1. To every establishment in which fifty or more workmen are employed on any day of the preceding twelve months as contract labour;
2. To every contractor who employs or who employed on any day of the preceding twelve months fifty or more workmen.

If any person contravenes any provisions of the Act or any rules made thereunder he would be punished with imprisonment up to three months, or fine up to ₹1,000 or with both, if such contravention is continued after conviction the fine would be up to ₹ 100 per day.