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Evolution of Strategy at Procter & Gamble

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1] Contract labor system * A workman is deemed to be employed as Contract Labor when he is hired in connection with the work of an establishment by or through a contractor. Contract workmen are indirect employees; persons who are hired, supervised and remunerated by a contractor who, in turn, is compensated by the establishment. * 3. Contract labor should not be employed where (a) The work is perennial and must go on from day to day;(b) The work is incidental to and necessary for the work of the factory;(c) The work is sufficient to employ considerable number of whole time workmen; and (d) The work is being done in most concerns through regular workmen. * 4. The Contract Labor (Regulation and Abolition) Act, 1970 Act and the Contract Labour (Regulation and Abolition) Central Rules, 1971 came into force on 10.2.71 * 5. Main objective of the Contract Labour (Regulation & Abolition) Act, 1970 is two fold:-i) To regulate the employment of Contract Labour in certain establishments; andii) To provide for its abolition in certain circumstances. In order to achieve above objectives, the Act lays down various requirements with regard to hiring of Contract Labour, its wages & earnings, working conditions etc. * Every Every industry engaging 20 or more workers on contract basis.6. contractor engaging 20 or more workers. * Contract is awarded by the concerned department /commercial7. Concerned deptt. send a job request to the purchase deptt.department. Purchase deptt. go through by the following steps.I) EnquiryII) OffersIII Comparative StatementIV)NegotiationV)Award the Contract * 8. Work Order is given by the concerned deptt. to the Contractor. Contractors fill in an application Form for engaging contract labour every month Safety Concerned department recommends the no. of labourers./new entry. department imparts training to the labourers. * The Act has laid down certain amenities to be provided by the9. contractor to the contract labour for establishment of Canteens and rest rooms; arrangements for sufficient supply of wholesome drinking water, washing facilities and first aid facilities have been made obligatory. * The contractor is required to pay wages and a duty is cast on him to10. ensure disbursement of wages in the presence of the authorised representative of the Principal Employer. In case of failure on the part of the contractor to pay wages either in part or in full, the Principal Employer is liable to pay the same. * Since 1970 when the Contract Labour (Regulation and Abolition) Act was11. enacted the economy has undergone a sea-change, from an era of protectionism to liberalisation, from restricted domestic competition to international The system of contract labour offers tremendous opportunitiescompetitiveness. for employment and allows the employers flexibility to choose what is best for The Actthem. This helps improve productivity and service competitiveness. should be made applicable only to the main and core activities of the establishment in so far as abolition of contract labour system is concerned. * Supportive or allied activities of an establishment like maintenance,12. house keeping should be out sourced and the Act should only provide for The Principal Employer should,regulating the working conditions and wages. however, have to ensure payment of wages to contract labour as laid down under the law in force as also other basic amenities and social security benefits. If theWork requiring specialised skills unavailable within the establishment. contract labour system, which is cost effective, is not allowed to continue, industries may go in for technological restructuring with less number of workers leading to reduction in employment. * 13. The Trade Unions are totally opposed to then idea of contracting of services and in jobswhich are perennial in nature for following reasons:- The contract labour generally belong to weakerReduction of regular employment; sections of the society and will be deprived of the benefits that accrue to Efficiency will decrease as establishment will be deprivedregular employees. Coordination of activities of large number ofof experienced staff. contractors/sub-contractors will prove to be more time consuming and costly than What is required is not privatisation but in housein house activity. Out sourcing will only lead to a type ofimprovements and restructuring. employment founded on discrimination and exploitation of contract labour in regard to wages paid, working conditions, etc.
2] E p f
A retirementplan for the private and public sectors in Malaysia, enacted by the Employees Provident Fund (EPF) Act of 1991, intended to help employees save a portion of their salary in the event of retirement, disability, sickness or unemployment. As of 2007, employees are required to contribute at least 11% of their paycheck, with their employers contributing at least an additional 12%. The savings can then be used by the EPF for a wide variety of investments, and the participating employees are repaid through reinvested dividends. Employees may withdraw 30% of their accumulated EPF savings at age 50, and 100% at age 55.

Employee Provident Fund EPF is an employee benefit scheme generally prescribed by a statutory body of the government which provides facilities to the employees of an organization with regard to medical assistance, retirement, education of children, insurance support and housing. In India, the Employees’ Provident Fund Organization (EPFO), which works under the Ministry of Labour and Employment, has the authority to mandate policies on EPF, pension and insurance schemes. The Employees' Provident Fund Scheme and Miscellaneous provisions Act, 1952 defined by EPFO- is applicable to every establishment (business/ not-for-profit) employing 20 or more persons (5+ in the case of cinema theatres) in the whole of India except Jammu and Kashmir. As a part of EPF, the employer is expected to make a contribution of at least 12% of the basic pay (include ng the cost of living adjustment allowance and retention allowance) subject to a maximum of Rs 6,500 per month to the provident fund of every employee of the firm. An employee can withdraw the full amount at credit on the fund on retirement after attaining 55 years of age. However, an employee who has not attained the age of 55 years also has the provision to cash the balance on his provident fund under the following circumstances- 1. Termination of services 2. Retirement on account of permanent disablement 3. Migration for taking employment abroad

Who is an occupier

3] THE Factories Act, 1948 is a beneficial legislation. The aim and object of the Act is essentially to safeguard the interests of workers, stop their exploitation and take care of their safety, hygiene and welfare at their places of work. It casts various obligations, duties and responsibilities on the occupier of a factory. Amendments to the Act and court decisions have further extended the nature and scope of the concept of occupier, especially vis-a-vis hazardous processes in factories.
Who is an occupier
Section 2(n) states that `occupier' of a factory means the person who has ultimate control over the affairs of the factory; provided that: i) in the case of a firm or other association of individuals, any one of the individual partners or members thereof shall be deemed to be the occupier; ii) in the case of a company, any one of the directors,shall be deemed to be the occupier; and iii) in the case of a factory owned or controlled by the Central Government, or any State Government, or any local authori ty, the person or persons appointed to manage the affairs of the factory by the Central Government, the State Government or the local authority, as the case may be, shall be deemed to be the occupier.
4] young person" means a person, who is either a child or an adolescent;
(e) "day" means a period of twenty-four hours beginning at midnight;

6]The Minimum Wages Act, 1948 is an Indian legislation enacted by the Parliament of India for statutory fixing of minimum wages to be paid to skilled and unskilled labours. The Indian Constitution has defined a 'living wage' that is the level of income for a worker which will ensure a basic standard of living including good health, dignity, comfort, education and provide for any contingency. However, to keep in mind an industry's capacity to pay the constitution has defined a 'fair wage'.[1] Fair wage is that level of wage that not just maintains a level of employment, but seeks to increase it keeping in perspective the industry’s capacity to pay. To achieve this in its first session during November 1948, the Central Advisory Council appointed a Tripartite Committee of Fair Wage. This committee came up with the concept of Minimum Wages. A minimum wage is such a wage that it not only guarantees bare subsistence and preserves efficiency but also provides for education, medical requirements and some level of comfort.[1] India introduced the Minimum Wages Act in 1948,[2] giving both the Central government and State government jurisdiction in fixing wages. The act is legally non-binding, but statutory. Payment of wages below the minimum wage rate amounts to forced labour. Wage Boards are set up to review the industry’s capacity to pay and fix minimum wages such that they at least cover a family of four’s requirements of calories, shelter, clothing, education, medical assistance, and entertainment. Under the law, wage rates in scheduled employments differ across states, sectors, skills, regions and occupations owing to difference in costs of living, regional industries' capacity to pay, consumption patterns, etc. Hence, there is no single uniform minimum wage rate across the country and the structure has become overtly complex. The highest minimum wage rate as updated in 2012 is Rs. 322/day in Andaman and Nicobar[3] to Rs. 38/day[4] in Tripura.

OBJECTIVES of minimum wages act

•To prevent the exploitation of Workers by the Employers
(By fixing the statutory obligation on the employer to pay the minimum wages).
•To bring the social justice. 0
•To enable the working class to have a minimum standard of life.
• to fix/revise the minimum rate of wages for the scheduled employments.
•to add any new employment to the schedule.

7] THE WORKMEN'S COMPENSATION 0ACT, 1923 (Amended in 1984, 2000) * The Workmen's Compensation Act 1923 was enacted to help workmen face the hardships resulting from accidents. These legal provisions apply equally to women workers also. An employer liable to provide monetary compensation to a disabled workman, or to his dependents, in case of his death, if the disablement or death occurs "out of and in the course of employment."

Any worker employed in any of a wide variety of hazardous occupations who has suffered an injury is eligible for compensation. If he dies, his dependents can claim the benefits provided by the Act. The injury must disable him for more than 3 days, totally or partially. The disablement means the loss in the earning capacity of a workman in every employment which he was capable of doing at the time of the accidents. Its effect may be temporary or permanent (Schedule 1). To get compensation for an occupational disease, a workman must have been employed in the specified occupation for a continuous period of at least 6 months. If the compensation is not paid within one month after the date due, a simple interest at 6% per annum on the arrears can be recovered from the employer.

The compensation is paid to the worker according to the damage:

1. In case of death: 40% of the monthly wage of the dead workman, multiplied by the relevant factor or Rs. 20,000; whichever is more.
2. In case of total permanent disablement: 50% of the monthly wage, multiplied by the relevant factor: or Rs. 24,000; whichever is more.
3. In case of partial permanent disablement: The compensation is a percentage of that payable in the case of total permanent disablement. The earning capacity is determined by a qualified medical practitioners.
4. In case of (total or partial) temporary disablement" A sum equal to 25% of the monthly wages of the workman shall be paid half-monthly.

The minimum rate of compensation is proposed to be raised from 50,000 to Rs. 80,000 for death and from Rs. 60,000 to Rs. 90,000 in case of permanent/total disablement.

State Government appoint Commissioners to investigate and solve every case for workmen's compensation. The appointed Commissioner's tribunal has some of the powers of a civil court. An appeal against any order of the Commissioner can be filed in the High Court. This must be done within 60 dasy of the order or decision of the Commissioner.
8]Settlement:
1. Sec. 2 (p) defines “Settlement”.
2. A settlement is arrived as a result of conciliation.
3. It resembles a “Gentlemen-Agreement”.
4. Both the parties come to a conclusion by mutual agreement, and sign on the Settlement Agreement.
5. The Conciliation Officer settles the disputes between the parties in an amicable manner
6. Both the parties must sign on settlement.
7. A settlement would become an Award.
Award:
1. Sec. 2 (a) defines “Award”
2. An Award is a decision of the Arbitrator, Labour Court or Industrial Tribunal.
3. It resembles the Judgment of a Court.
4. It is passed by Arbitrator, Labour Court or Industrial Tribunal. Its decision may be positive on one side and negative on another side. There is no mutual consent between the parties. However, the Award consists binding force upon the parties
5. The Arbitrator, Labour Court or Industrial Tribunal resolves the problem hearing the arguments from both sides.
6. The parties need not sign.
7. An Award would not become a Settlement. A Settlement may precede the Award.
9] Employees’ Pension Scheme is Pension Scheme for survivors, old aged and disabled persons. The earlier Family Pension Scheme, 1971 offered only one type of benefit, namely, survivor’s benefit, i.e. (payment of pension to widow/widower on death of the member in service. On the other hand, the new scheme caters for three types of contingencies :—
1. Survivor Pension : If death occurs during service period.
2. Old Age Pension : Pension or Superannuation.
3. Permanent Disability : In the event of member suffering
Pension permanent disability while in service. Benefits to Members under EPF Schemes | | | | 1. Provident Fund benefits

1. Employer also contributes to Members PF @ 12% ( 10% in case of sick industrial co., any establishment having accumulated loss equal to its entire paid up capital and any establishment in Jute Industry, Beedi Industry, Brick Industry, Coir Industry and Gaur Gum Factories. )
2. EPFO guarantees the Employer contribution and credits interest at such rates as determined by the Central Government.
3. Member can withdraw from this accumulations to cater to financial exigencies in life - No need to refund unless misused
4. On resignation, the member can settle the account. i.e., the member gets his PF contribution, Employer Contribution and Interest.

2. Pension Benefits

1. Pension to Member
2. Pension to Family (on death of member)
3. Scheme Certificate * This Certificate shows the service & family details of a member * This is issued if the member has not attained the age of 58 while leaving an establishment and he applies for this certificate * Member can surrender this certificate while joining another establishment and the service stated in the certificate is added with the service he is gaining from the new establishment. * After attaining the age of 50 or above, the member can apply for Pension by surrendering this scheme certificate (if total service is atleast 10 years) * This is a better choice than Withdrawal Benefit, as a member dies holding a valid scheme certificate, his family will get pension (Death when NOT in service) 3. Withdrawal Benefit * If not eligible for pension, member may withdraw the amount accumulated in his pension account * The calculation of this amount is based only on (i) Last average salary and (ii) Service (Not based on actual amount available in Pension Fund Account) 5. No amount is taken from Member to give Pension to the Member. Employer and Govt. contributes to Pension fund @8.33% and @1.16% respectively

6. EPFO guarantees pension to members, even if the Employer has not contributed to Pension Fund.

4. Death Benefits

1. Provident Fund Amount to Family (or to Nominee)
2. Pension to Family (or to Parent / Nominee)
3. Capital Return of Pension
4. Insurance (EDLI) amount to Family (or to Nominee) * No amount is taken from Member for this facility. Employer contributes for this. 5. Nominee is basically determined as per the information submitted by the member at this office through FORM-2

-- grant of exemption from the operation of the scheme/s framed under the Act to an establishment , to a class of employees and to an individual employee , on certain conditions.
-- Penalties to employers/trustees of exempted Provident Fund who contravene the provision of the Act and the Scheme.
-- appointment of inspector to secure compliance under the Act and the Schemes framed there under. |

What is EDLI ?

All employees to whom the Employee's Provident Fund and Miscellaneous Provision Act , 1952 applies, have a Statutory liability to subscribe to Employee's Deposit Linked Insurance Scheme, 1976 to provide for the benefit of Life insurance to all their employees. Under the scheme as amended with effect from 24th June,2000 the insurance benefit is equal to the average balance to the credit of the deceased employee in the Provident Fund during the last 12 months, provided that where such balance exceeds Rs.35,000, insurance cover would be equal to Rs.35,000 plus 25% of the amount in excess of Rs.35,000 subject to a maximum of Rs.60,000. Thus if the lenth of service is not adequate and/ or the salary is low the average balance may be substantially less and such the benefit to the employee's family is either inadequate or non-existent.

10] benefits of E D L I
Benefits

For the Employee
• On death of the member, his beneficiary receives a higher sum assured based on the member’s prevailing salary and years of service, irrespective of the actual Provident Fund Balance.
• The death benefit is free of tax in the hands of the beneficiary
For the Employer • The settlement of claims is professionally managed and is quick and hassle free.
• The premium payable by the employer is usually less than the total contribution being paid by the employer to the Regional Provident Fund Commissioner Tax Benefits
• Premiums paid by the employer are treated as a business expense under Section 37 of the Income Tax Act
Tax Treatment
For the Employee • Under Section 17(2) (vi) of the Income Tax Act, the premiums paid by the employer is not treated as a perquisite in the hands of an employee.
• The death benefit is not taxed in the hands of the beneficiary under Section 10(10D) of the Income Tax Act.
For the Employer
• The premiums paid by the employer are treated as normal business expenses for Income Tax purposes under Section 37 of the Income Tax Act * 11] safety measures in factories act * Examination shall be carried outSec 22:Work On Or Near Machinery In Motion Such Should wear tight fitting clothesonly byspecially trained male workers No woman or young person shallworker shall not handle a belt at movingpulley be allowedto clean, lubricate or adjust any part of primemover * Can work only4. Sec 23: Employment Of Young Persons OnDangerous Machines after they have been fully instructed as to the dangers arising in connection Has received sufficient training in work at the machine with the machines Under adequate supervision of a person who has a thorough knowledge and experience of the machine * Suitable striking5. Sec 24: Striking Gears And Devices To CutOff Power driving beltsgear or other efficientmechanical appliance shall be provided Inwhen not in use shall not beallowed to rest or ride upon shafting inmotion every factory suitable devices forcutting off power in emergencies fromrunning machinery shall be provided andmaintained in every work room * 6. Sec 25: Self Acting MachinesNo traversing part of a self-actingmachine in any factory and nomaterial carried thereon shall, ifthe space over which it runs is aspace over which any person isliable to pass, whether in thecourse of his employment orotherwise, be allowed to run on itsoutward or inward traverse withina distance of forty-fivecentimeters from any fixedstructure which is not partof the machine * Every set screw, bolt or key on7. Section 26: Casing Of A New Machinery any revolvingshaft, spindle, wheel or pinion shall be so sunk,encased or All spur, worm and otherotherwise effectively guarded as toprevent danger toothed or frictiongearing which does not require frequentadjustment while in motion shall be completelyencased, unless it is so situated as to be as safeas it would be if it were completely encased * Whoever sells or lets on hire or, as agent of aseller or hirer, causes8. or procures to be sold or leton hire, for use in a factory any machinery drivenby power which does not comply with theprovisions of shall be punishable withimprisonment for a term which may extend to threemonths or with fine which may extend to fivehundred rupees or with both * 9. Section 27: Prohibition Of Employment OfWomen And Children Near Cotton OpenersNo woman or child shall be employed in any part of afactory for pressing cotton in which a cotton-opener isat work: Provided that if the feed-end of a cotton-opener is in a room separated from the delivery end bya partition extending to the roof or to such height asthe Inspector may in any particular case specify inwriting, women and children may be employed on theside of the partition where the feed-end is situated * 10. Sec: 28 Hoists and Lifts1. Sec 28 (1) – Properly maintained – Examined by a competent person at least once in every period of six months – Maximum load2. Sec 28 (2) – At least two ropes or chains separately – An efficient automatic device shall be provided and maintained to prevent the cage from over-running * 11. Sec: 28 Hoists and Lifts3. Sec 28 (3) – Chief Inspector may permit the continued use of a hoist or lift * Properly12. Sec 29 :- Lifting machines, chains, ropes and lifting tackles Thoroughly examined by a competent person at least once in everymaintained While any person is employed or working on or near theperiod of twelve months wheel track of a travelling crane in any place where he would be liable to be struck by the crane, effective measures shall be taken to ensure that the crane does not approach within 1*[six months] of that place * Effective measures shall be taken in13. Sec 30 :- Revolving machinery every factory to ensure that the safe working peripheral speed of every revolving vessel, cage, basket, flywheel, pulley, disc or similar appliance The speeds indicated shall not be exceededdriven by power is not exceeded * 14. Sec : 31 Pressure PlantEffective measures shall be taken toensure that the safe working pressure ofplant or machinery or part is notexceeded * Sound construction and15. Sec : 32 Floors, Stairs And Means Of Access When any person has to work at a height from where he isproperly maintained likely to fall, provision shall be made, so far as is reasonably practicable, by fencing or otherwise, to ensure the safety of the person so working * 16. Sec: 33 Pits, Sumps, Openings In Floors In every factory every fixed vessel, sump, tank, pit or opening in the ground or in a floor which, by reason of its depth, situation, construction or contents, is or may be a source of danger, shall be either securely covered or securely fenced * No person shall be employed in any factory to17. Sec: 34 Excessive Weights Thelift, carry or move any load so heavy as to be likely to cause him injury State Government may make rules prescribing the maximum weights which may be lifted * Exposure toParticles or fragments18. Section 35: Protection of eyes Suitable gogglesEffective screensexcessive light * No person shall be19. Section36 :Precautions Against DangerousFumes, Gases required or allowed to enter any chamber, tank unless it is provided with a Suitable breathing apparatus and a belt Certificatemanhole of adequate size * 20. Section36a: Precautions Regarding The Use Of Portable Electric Light Portable electric light or any other electric appliance of voltage exceeding No lamp or light other than that oftwenty-four volts shall not be permitted flame-proof construction shall be permitted * 21. Section37:Explosive Or Inflammable Dust,GasPREVENTIVE MEASURES: removal oreffective enclosure of the plant or machinery used in the process; exclusion orprevention of the accumulation of such dust, gas, fume or vapour; effective enclosure of all possible sources of ignition. * 22. Section37:Explosive or inflammable dust, gas• Inflammable gas or vapour Pipe shall be effectivelyunder pressure greater than atmospheric pressure Practicable measures shall be taken to reduce thestopped by a stop- valve Effective measures shall be taken to prevent any explosionpressure of the gas * 23. Section37: Explosive Or Inflammable Dust, GasNo plant, tank or vessel which containing any explosive or inflammable substance shall be subjected in any factory to any welding, brazing, soldering or cutting operation which involves the application of heat * 24. Section38: Precautions In Case Of Fire(a) Safe means of escape for all persons in the event of a fire(b) Necessary equipment and facilities for FreeWorkers are familiar with the means of escapeextinguishing fire Workers should be trainedpassage–way giving access * 25. Section39: Power To Require Specifications Of Defective Parts Or Tests Inspector Building or part of a building dangerous to human lifeOf Stability of the factory take order in writing before a specified datea) to furnish such drawings, specifications and other particulars to determine whether such building, can be used with safety, or(b) to carry out tests and inform the officer * An order may be served26. Section40: Safety Of Buildings AndMachinery prohibiting the use of such building or machinery, until it has been repaired or 40A Maintenance of buildingsaltered. * wherein one thousand or27. Section40B: Safety OfficersIn every factory The duties,more workers are there ;employ such number of Safety Officers qualifications and conditions of service of Safety Officers

12] objectives of E S I act
Objectives:
The ESI Act is a social welfare legislation enacted with the object of providing certain benefits to employees in case of sickness, maternity and employment injury. Under the Act, employees will receive medical relief, cash benefits, maternity benefits, pension to dependents of deceased workers and compensation for fatal or other injuries and diseases.
13] Establish of E S I
The Act, in the first instance, applies to all non-seasonal factories using power and employing ten or more persons, and, to non-power using manufacturing units and establishments employing 20 or more persons for wages and falling within the scope of an implemented geographical area. As of now, employees of factories/ establishments, that fall within the ambit of coverage, and earning wages not exceeding Rs. 15,000/- per month are covered under the ESI Scheme (wef 1st May 2010).
The provisions of the ESI Act, have also been extended to the following classes of establishments under Section 1(5) of the Act. | Shops | | Hotels & Restaurants, Clubs | | Cinemas, including preview theatres | | Newspaper establishments | | Road Motor Transport establishments |
Under Section 1(5) of the ESI Act, the Appropriate Govt. is empowered to extend the Scheme to any other establishment or class of establishments, industrial, commercial, agricultural or otherwise. Thus, a State Government may extend the provisions of the Act in consultation with the ESI Corporation, and with the approval of the Central Government, after giving six months notice of its intention in the official gazette; provided that where the provisions of this Act have been brought into force in any part of State, the said provisions shall stand extended to any such establishment or class of establishments within that part if the provisions have already been extended to similar establishments or class of establishments in another part of that State
15]What is the procedure for registration of an employer?
The Factory or Establishment to which the Act applies is to be registered by submitting an Employer’s registration form (Form -01) to the concerned Regional office and obtain an identification number called the Code number (Section 2(A) read with Regulation 10-B). What are the documents to be submitted along with the Employer’s registration form?
Documents relating to the constitution of the Factory/Firm/Establishment/, evidence in support of the date of commencement of production /business, list of partners / directors with their address, address proof like pan card / passport/voter identity card/ month wise employment position etc. are the essential documents. 16] Benefits of E SI BENEFITS | | | Medical Benefits | The Scheme provides full range of medical care, namely Out-patient services, Specialists' services and Hospital services through a network of dispensaries, diagnostic centers and ESI Hospitals etc.
Super-specialties are provided to the beneficiaries through the country's most advanced medical institutions for which payments are made directly by the ESI Corporation to the institution concerned. | read more.. | Sickness Benefit (cash) | Sickness Benefit is payable to an insured person in cash, in the event of sickness resulting in absence from work and duly certified by an authorized insurance medical of¬ficer/practitioner. | read more.. | Extended Sickness Benefit (Cash) | Extended Sickness Benefit becomes payable to insured persons for the period of certified sickness in case of specified 34 long term diseases which need prolonged treatment and absence from work on medical advice. | read more.. | Enhanced Sickness Benefit (Cash) | This cash benefit is payable to insured persons in the productive age group for undergoing sterilization operation, viz. vasectomy/tubectomy. | read more.. | Disablement Benefit (Cash) | Disablement Benefit is payable to insured employees suffering from physical disablement due to employment injury or occupational disease. | read more.. | Dependants' Benefit (Cash) | Dependants benefit (family pension) becomes payable to dependants of a deceased insured person where death occurs due to employment injury or an occupational disease. | read more.. | Maternity Benefit (Cash) | Maternity Benefit is payable to insured women in case of confinement or miscarriage or sickness arising out of pregnancy. | read more.. | Other Benefits | Some other benefits like funeral expenses, rehabilitation allowances etc. are also admissible to deserving insured persons. | | | |
17] Protected workman – If union nominates a workman facing Disciplinary Proceedings During the pendency of any Conciliation Proceedings, the Industrial Disputes Act, 1947, grants special privileges and protection to Office bearers of recognized Unions vide Section 33(3) & (4) of the Act. The Explanation to Section 33(3) defines a Protected Workman as a ‘workman who is a member of the executive or other office bearer of any registered recognized trade union connected with the establishment’. According to Section 33(3) ‘no employer shall take any action against any Protected Workman by altering his service conditions before commencement of conciliation proceedings; or discharge/punish him during pendency of such proceedings’, except with ‘express permission obtained in writing from the authority before which the proceeding is pending’.
From the provisions of Section 33(3), it is manifest that the section imposes an unqualified ban on the employer with respect protected workmen, from discharging or punishing the workman by dismissal or otherwise, whether it be for some misconduct or for any other reasons. The objective behind this blanket protection is that the legislature was anxious, for the healthy growth and development of trade union movement, and it desired to ensure that trade union representatives are protected from all sorts of victimisation and unfair labour practices, during the pendency of conciliation proceedings. It further enables the workmen to have collective bargaining strength to countenance the unwarranted victimisation and give fillip to collective bargaining power with their employers.
Section 33 (4) of the ID Act deals with the number of employees entitled to protection. It says that in every establishment, one percentage of total number of employees with a maximum limit of 100 and minimum limit of 5 employees, are to be granted protection. If there are more than one recognised unions, their entitlement for number of protected workmen are to be decided proportionately by their membership strength. Rule 61 of the Industrial Disputes (Central) Rules, 1957, says that every year before 30th April, every recognized Union shall nominate to their employer, their panel of employees to be recognised as Protected Workman. Any change in their incumbency shall also be communicated to the employer within 15 days.
Therefore, once the union makes its choice of protected workmen and communicates it to the employer by the due date, Rule 66(1) casts a mandatory obligation that the employer shall recognise those workmen as protected workmen. In view of the mandatory language of Rule 66(2), the employer can refuse to recognise the nominated protected workmen, only if the nominated number exceeds the permissible limit, provided under Section 33(4) of the ID Act.
Recently, the Kerala High Court encountered an interesting dispute wherein a Workman who was already facing Disciplinary Action and Chargesheeted for misconduct was nominated by the Union for recognizing as a Protected Workman. The management declined their request, which lead to the Union approaching the Assistiant Labour Commissioner who passed an order in favour of the Union, granting protection to the nominated workman. The management challenged the said order by filing the Writ Petition.
The Single Judge of Kerala High Court [Antony Dominic J, 2010 III LLJ 811] held that “the choice of the individual officers, who are to be recognized as protected workmen has been left to the concerned Trade Union … and once the communication of the Union’s choice is sent to the employer, a mandatory obligation is cast on the employer that it shall recognize the workmen as protected workmen …. even if a Union Official is facing disciplinary action, that does not render him ineligible for being recognised as protected workmen”.
However, the management preferred an intra-court appeal and the Division Bench [Justices C. N. Ramachandran Nair & K. Surendra Mohan, HLL Lifecare Ltd. v. Hindustan Latex Labour Union (AITUC), W.A 1171 of 2010, decided on 3rd November, 2010], reversed the above said judgment of single judge and held that “it is upto the management to consider whether any of the office-bearers nominated by the union is undesirable or ineligible for recognition and if they find so for valid reasons, they are free to reject the nomination of such office-bearer. If the management declines to recognise any office-bearer as protected workman, it is for the Union to either contest the same by raising a dispute before the Labour Commissioner as provided under sub-rule (4) of Rule 61 of the Rules whose decision shall be final or to send the name of another office-bearer for recognition as protected workman.. However, management is entitled to decline recognition as protected workmen to a person nominated by the union, if any disciplinary proceeding is pending against such workman. Union certainly cannot exercise their power under Rule 61(1) to give immunity to an employee against whom disciplinary proceedings initiated by the management are pending, by nominating his name for recognition as protected workman.”
Although the decision of Single Judge was in tune with the established principles regarding the concept of protected workmen, the Division Bench of Kerala High Court adopted a more progressive interpretation of the provision, in favour of the employer, in order to prevent expansion of militant trade unionism that has in already disgraced the state of Kerala. Therefore, according the new interpretation, an office bearer of the Union facing disciplinary proceedings is not entitled to be nominated by the Union for recognition as protected workman and the management is absolutely within their powers to decline recognition to such an office-bearer under sub-rule (2) of Rule 61.
16] difference between registration and recognition of trade union
Recognition and Registration are therefore, conceptually and fundamentally mutually exclusive. But recognition may be granted to a majority union by the Management. Recognition may be granted by law to a qualified Union, independent of management's wishes and desires too!
Recognized trade unions are those unions which are known/conceded/approved by the employer to be their by the employee trade union and as far as registered trade union is consider they are those trade unions which are registered under the concerned trade union act.

What is the principle of set on and set off of allocable surplus?: The principle of set on and set off of allocable surplus is as follows: Where for any year the allocable surplus exceeds the amount of maximum bonus payable to the employees, then, the excess shall, subject to a limit of twenty percent of the total salary or wages of the employees, be carried forward for being set on in the succeeding year and so on to be utilized for the purpose of payment of bonus. Where for any year there is no available surplus, or the allocable surplus in respect of that year falls short of the amount of minimum bonus payable to the employees, and there is no amount or sufficient amount carried forward and set on which could be utilized for the purpose of payment of the minimum bonus, then, such minimum amount or the deficiency, as the case may be, shall be carried forward for being set off in the succeeding year and so on. {Section 15}

Set on and set off of allocable surplus.— (1) Where for any accounting year, the allocable surplus exceeds the amount of maximum bonus payable to the employees in the establishment under section 11, then, the excess shall, subject to a limit of twenty per cent. of the total salary or wage of the employees employed in the establishment in that accounting year, be carried forward for being set on in the succeeding accounting year and so on up to and inclusive of the fourth accounting year to be utilized for the purpose of payment of bonus in the manner illustrated in the Fourth Schedule.

(2) Where for any accounting year, there is no available surplus or the allocable surplus in respect of that year falls short of the amount of minimum bonus payable to the employees in the establishment under section 10, and there is no amount of sufficient amount carried forward and set on under sub-section (1) which could be utilized for the purpose of payment of the minimum bonus, then, such minimum amount or the deficiency, as the case may be, shall be carried forward for being set off in the succeeding accounting year and so on up to and inclusive of the fourth accounting year in the manner illustrated in the Fourth Schedule
18] Gratuity payment is a lump sum that your company will pay you as an acknowledgement of your loyalty to the company. Naturally, gratuity becomes payable only after you have spent a certain number of years with the company.
You will receive this benefit either at the time of retirement or when you resign. Let us take a look at how gratuity benefit is paid.
There are two conditions that must be satisfied in order to be eligible to get the gratuity benefit * Your organisation has a minimum of 10 people on payroll, i.e., at least 10 employees receiving salaries from the organization. Note that people on contract are not considered. * You have completed at least 5 years with the organization. If an employee dies during the tenure of his employment, the 5 year rule is relaxed. So, even if such employee's period of service is as little as 1 year, he / she is eligible to receive gratuity if the first condition is met.
Calculation of the amount of gratuity payable
According to the law, the amount payable as gratuity is equivalent of half month's salary for every full year of your employment or Rs 10 lakh, whichever is lower.
This is the minimum amount payable under the law. Some companies may pay a higher amount. This upper limit depends upon the company's policy. For example, if you have put in 10 years of service before you resign from the company, you are entitled to the lower amount of:
An amount equal to 5 month's salary or Rs 10 lakh.
However, if your company has a policy to pay its employees a maximum of Rs 20 lakh as gratuity, then the amount payable to you when you resign after 10 years of completed service will be the lower amount of:
An amount equal to 5 month's salary or Rs 20 lakh.
Your last paycheck before you retire or resign is the amount you should consider in your gratuity computation. Also, only your 'basic' and 'dearness allowance / DA' should be taken into consideration.
For example, assuming Anil retires this year after completing 30 years with his company and his last pay check looks like the following, let us calculate the amount of gratuity that Anil's company should pay him:
Basic: Rs. 60,000
DA : Rs.10,000
HRA: Rs. 26,000
Education allowance: Rs.5000
Travel allowance: Rs. 15,000
Gratuity payable: Last month's salary / 26 (days) x 15 (days) x completed years of employment.
Last month's salary to compute gratuity = Basic + DA = Rs 70,000.
Gratuity payable = (70,000/26) x 15 x 30 = Rs 12,11, 538.
Since there is a limit of Rs 10 lakh, Anil is entitled to receive Rs 10 lakh towards gratuity. If his company has a policy to pay gratuity up to an amount of Rs 15 lakh, then Anil's gratuity benefit will be Rs 12.11 lakh.
. 19] unfair labor practices ON THE PART OF EMPLOYERS AND TRADE UNIONS OF EMPLOYERS
(1) To interfere with, restrain from, or coerce, workmen in the exercise of their right to organize, form, join or assist a trade union or to engage in concerted activities for the purposes of collective bargaining or other mutual aid or protection, that is to say.-
(a) threatening workmen with discharge or dismissal, if they join a trade union;
(b) threatening a lock-out or closure, if a trade union is organized;
(c) granting wage increase to workmen at crucial periods of trade union organization, with a view to undermining the efforts of the trade union at organization.
(2) To dominate, interfere with or contribute support, financial or otherwise, to any trade union, that is to say,
(a) an employer taking an active interest in organizing a trade union of his workmen; and
(b) an employer showing partiality or granting favor to one of several trade unions attempting to organize his workmen or to its members, where such a trade union is not a recognized trade union.
(3) To establish employer sponsored trade unions of workmen.
(4) To encourage or discourage membership in any trade union by discriminating against any workman, that is to say,
(a) discharging or punishing a workman, because he urged other workmen to join or organize a trade union;
(b) discharging or dismissing a workman for taking part in any strike (not being a strike which is deemed to be an illegal strike under this Act);
(c) changing seniority rating or workmen because of trade union activities;
(d) refusing to promote workmen of higher posts on account of their trade union activities;
(e) giving unmerited promotions to certain workmen with a view to creating discord amongst other workmen, or to undermine the strength of their trade union;
(f) discharging office-bearers or active members of the trade union on account of their trade union activities.
(5) To discharge or dismiss workmen-
(a) by way of victimization;
(b) not in good faith, but in the colorable exercise of the employer’s rights;
(c) by falsely implicating a workman in a criminal case on false evidence or on concocted evidence;
(d) for patently false reasons;
(e) on untrue or trumped up allegations of absence without leave;
(f) in utter disregard of the principles of natural justice in the conduct of domestic enquiry or with undue haste;
(g) for misconduct of a minor technical character, without having any regard to the nature of the particular misconduct or the past record or service of the workman, thereby leading to a disproportionate punishment.
(6) To abolish the work of a regular nature being done by workmen, and to give such work to contractors as a measure of breaking a strike.
(7) To transfer a workman mala fide from one place to another, under the guise of following management policy.
(8) To insist upon individual workmen, who are on a legal strike to sign a good conduct bond, as a precondition to allowing them to resume work.
(9) To show favoritism or partiality to one set of workers regardless of merit.
(10) To employ workmen as "badlis", casuals or temporaries and to continue them as such for years, with the object of depriving them of the status and privileges of permanent workmen.
(11) To discharge or discriminate against any workman for filing charges or testifying against an employer in any enquiry or proceeding relating to any industrial dispute.
(12) To recruit workman during a strike which is not an illegal strike.
(13) Failure to implement award, settlement or agreement.
(14) To indulge in acts of force or violence.
(15) To refuse to bargain collectively, in good faith with the recognized trade unions.
(16) Proposing or continuing a lock-out deemed to be illegal under this Act.
II. ON THE PART OF WORKMEN AND TRADE UNIONS OF WORKMEN
(1) To advise or actively support or instigate any strike deemed to be illegal under this Act.
(2) To coerce workmen in the exercise of their right to self-organization or to join a trade union or refrain from, joining any trade union, that is to say-
(a) for a trade union or its members to picketing in such a manner that non-striking workmen are physically debarred from entering the work places;
(b) to indulge in acts of force or violence or to hold out threats of intimidation in connection with a strike against non-striking workmen or against managerial staff.
(3) For a recognized union to refuse to bargain collectively in good faith with the employer.
(4) To indulge in coercive activities against certification of a bargaining representative.
(5) To stage, encourage or instigate such forms of coercive actions as willful, ,"go-slow", squatting on the work premises after working hours or "gherao" of any of the members of the managerial or other staff.
(6) To stage demonstrations at the residence of the employers or the managerial staff members.
(7) To incite or indulge in willful damage to employer’s property connected with the industry.
(8) To indulge in acts of force or violence or to hold out threats of intimidation against any workman with a view to prevent him from attending work.]

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