• 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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