Name of the Legislation

Applicability

Registration Certificate

Benefits

Standing Orders Act

• Every industrial establishment wherein one hundred (100) or more workmen are employed.
• Different States have provided separate threshold for the applicability of the Standing Order Act. For instance, in Andhra Pradesh and Karnataka, the Standing Order Act is applicable to industrial establishment employing fifty (50) or more workmen.)
• Other industrial establishments, employing less than one hundred (100) workmen, as notified by the appropriate Government.

Within 6 months from which the Standing Orders Act becomes applicable, the employer is required to submit the draft standing orders to the prescribed authority for certification.

• Employer is required to define the conditions of employment for his establishment.
• Payment of subsistence allowance at the prescribed rate to a worker who has been suspended by the employer pending investigation or inquiry into complaint of misconduct against him.

ESI Act

• Factories other than seasonal factories, employing ten (10) or more persons.
• Other establishments as notified by the appropriate Government. Certain States and Union Territories, like Andhra Pradesh, Bihar, Gujarat, Delhi, Jharkhand, Punjab Rajasthan and West Bengal have made the ESI Act applicable to establishments employing ten (10) or more persons.
• The factory or establishment to which ESI Act is applicable will continue to be governed by it irrespective of the fall in the number of employees below ten (10) or cessation of the manufacturing process which was carried on with the aid of power.

• Employer should submit a declaration of registration in the prescribed manner and an employer’s code number will be allotted.
• Employer to obtain signed declaration form from all covered employees.

• Employees earning less than Rs. 15,000 (Rupees Fifteen Thousand only) per month are eligible for the benefits under the ESI Act.
• ESI Act is aimed at conferring benefits on employees in case of sickness, maternity and employment injury. Accordingly, all eligible employees should be insured.
• Employer is required to contribute a sum equal to 4.75% of the wages payable to the employee and the employee should contribute 1.75%, to the Employee State Insurance Corporation.

EPF Act

• Every establishment which is a factory engaged in any industry specified in Schedule I of the EPF Act and in which twenty (20) or more persons are employed.
• Any other establishment employing twenty (20) or more persons as notified by the Central Government.
• It is also applicable to those establishments where the employer and the majority of the employees have agreed that the Act is to apply to that establishment.
• An establishment which is covered by the EPF Act will continue to be governed by it irrespective of the fall in the number of employees below twenty (20).

Every employer is required to apply in the prescribed form to the EPFO for allotment of the Code Number from the EPFO.

• Benefits are restricted to employees drawing wages up to Rs. 6,500 (Rupees Six Thousand Five Hundred only) per month at the time of joining. Employees drawing salary
  above Rs. 6,500 (Rupees Six Thousand Five Hundred only) may be brought under the EPF Act, at the discretion of the management and by furnishing a joint undertaking to the Provident Fund authority.
• International workers are also covered within the ambit of the EPF Act.
• Presently there are three schemes in operation under the EPF Act viz. Employees Provident Funds Scheme, 1952; Employees Deposit Linked Insurance Scheme, 1976; Employees’ Pension Scheme, 1995.
• Under the Employees Provident Funds Scheme, 1952, every employer is required to contribute 12% (twelve per cent) or 10% (ten per cent), as the case may be, of the wages of the employee. The employee is also required to make an equivalent contribution.

Bonus Act

• To a factory.
• Other establishments in which 20 or more persons are employed on any day during an accounting year.
• Other establishments as notified by the appropriate Government, employing not less than twenty (20) but more than ten (10) employees.
• An establishment which is covered by the Bonus Act will continue to be governed by it irrespective of the fall in the number of employees below twenty (20).

NA

• Employees earning not more than Rs. 10,000 (Rupees Ten Thousand only) and have worked in the establishment for not less than 30 (thirty) days in the relevant accounting year are eligible to avail the benefits of the Bonus Act. However, Section 32 of the Bonus Act exempts certain classes of employees.
• The minimum bonus payable to an eligible employee is 8.33% of the wage or INR 100, whichever is higher and the maximum is 20%.

CLRA Act

• Every establishment in which twenty (20) or more workmen are employed or were employed on any day of the preceding twelve months as contract labour. (Five (5) or more in Andhra Pradesh)
• Every contractor who employees or who employed on any day of the preceding twelve months, twenty (20) or more workmen.
• Does not apply to establishments where the work performed is only of an intermittent or seasonal nature, i.e. the work performed is less than one hundred twenty (120) days and (sixty) 60 days in a year respectively.

Principal Employer should obtain a registration certificate and the contractor should obtain a license.

• Under the CLRA Act, the principal employer (who is the owner or occupier of a factory, or any person responsible for the supervision and control of the establishment), who intends to appoint contract labour through contractors, as well as the contractors, are required to obtain registration for the unit.

Gratuity Act

• Every factory, mine, oilfield, plantations, port, railway company.
• Every shop or establishment in which ten (10) or more persons are employed, or were employed, on any day of the preceding twelve (12) months.
• Other establishments or class of establishments, in which ten (10)  or more employees are employed, or were employed, or, any day of the preceding twelve (12) months as notified by the Central Government.
• An establishment which is covered by the Gratuity Act will continue to be governed by it irrespective of the fall in the number of employees below ten (10).

• Every employee (other than apprentice) is entitled to receive gratuity after he has rendered continuous service for five (5) years or more, at the time of termination of his services.
• Gratuity is payable at the rate of fifteen (15) days wages for every completed year of service or part thereof in excess of six (6) months subject to a maximum of Rs. 10,00,000 (Rupees Ten Lakhs only).

Maternity Benefit Act

• Every establishment being a factory, mine or plantation including any such establishment belonging to Government.
• Not applicable to any factory or other establishment to which the provisions of the ESI Act applies.

NA

• Pregnant female employee who has worked with the employer for a period of not less than eighty days (80) in the twelve (12) months preceding the date of her expected delivery is entitled to maternity benefits up to a maximum of twelve (12) weeks. No employer is permitted to employ a female employee nor is she permitted to work, during the six (6) weeks immediately after the delivery.
• Maternity benefits are payable at the rate of the average daily wages for the period of actual absence.
• An employee eligible for maternity benefits is also entitled to medical bonus of Rs. 1,000 (Rupees One Thousand only), if no pre-natal or post natal care is provided for by the employer free of charge.