• The Factories Act, 1948
• The Minimum Wages Act, 1948
• The Payment of Wages Act, 1936
• Workmen’ s Compensation Act, 1923
• Payment of Bonus Act, 1965
• Maternity Benefit Act, 1961
• Shops and Commercial Establishments Act
• Professional Tax
• Contract Labor( Regulation and Abolition) Act, 1970
4.2.2 Working Hours and Holidays
State government laws set minimum wages, hours of work, and safety and health standards. The Factories Act mandates an 8 hour workday, a 48-hour workweek and minimum standards of working conditions. These standards are generally enforced and accepted in the modern industrial sector; however, not observed in economically lesser viable industries.
Where an employee works for more than 8 hours in a day or for more than 48 hours in any week, he is entitled to overtime wages at twice the basic wage rate( or 1.5 times his salary as per the business model). Overtime is generally paid to non-managerial staff i. e. blue collared.
4.3 Social Security 4.3.1 Employee Provident Fund and Miscellaneous Provisions Act, 1952
This is a retirement benefit akin to a pension plan, which requires a monthly contribution to be made by the employer with a matching contribution from an employee. At present, the monthly contribution is 12 per cent of basic salary. The enterprise can either register with the government provident fund department or form and manage its own trust. Monthly deposit of contribution and furnishing of returns are mandatory in either case.
This Act applies should the number of employees exceed 19 at any point of time during the year. Employees with basic salary in excess of ` 6,500( US $ 119 approx) per month can opt out of the scheme.
4.3.2 Payment of Gratuity Act, 1972
This provides for gratuity to employees in factories, plantations, shops, establishments and mines. Gratuity is payable in any of the following circumstances( i) on employee’ s retirement; or( ii) on his becoming incapacitated prior to such retirement; or( iii) on termination of his employment; or( iv) on the employee’ s death( gratuity is paid to legal heirs of the employee)
Except in the case of death or disablement, gratuity is payable only if the employee has rendered at least five years of continuous service.
The employee is paid 15 days of wages on the wages last drawn, for every completed year of service in excess of six months. The maximum amount of gratuity is limited to ` 10,00,000( USD $ 18,355 approx)
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