Applicability of labour laws in service sector
INTRODUCTION:
Labour laws emerged when the employers tried to restrict the powers of workers' organizations and keep labour costs low. The workers began demanding better conditions and the right to organize so as to improve their standard of living. Employer’s costs increased due to workers demand to win higher wages or better working conditions. This led to a chaotic situation which required the intervention of Government. In order to put an end to the disputes between the ever-warring employer and employee, the Government enacted many labour laws.
In India the labour laws are so numerous, complex and ambiguous that they promote litigation rather than the resolution of problems relating to industrial relations. The labour movement has contributed a lot for the enactment of laws protecting labour rights in the 19th and 20th centuries. The history of labour legislation in India can be traced back to the history of British colonialism.
India has a number of labour laws addressing various issues such as resolution of industrial disputes, working conditions, labour compensation, insurance, child labour, equal remuneration etc. the applicability of labour laws differ from sectors such as Baking, IT, Service, Manufacturing etc. This article deals more about the applicability of labour laws for service sectors.
Synonyms:
Service sector:
The part of the economy that includes individuals and businesses that produce services rather than goods, The service sector includes education, finance, communications, health care, utilities, wholesale and retail trade, and transportation.
Labour law:
Labour Law is the body of laws, administrative rulings, and precedents which address the relationship between and among employers, employees, and labor organizations, often dealing with issues of public law.
Labour laws for service sectors:
Ø Tamil Nadu Shops and Establishments Act, 1947
Ø Tamil Nadu Maternity Benefit Act, 1961
Ø Contract Labour Act, 1970
Ø Payment of Gratuity Act, 1972
Ø Tamil Nadu Industrial Establishments (National and Festival)) Holidays Rules, 1959
Ø Payment of wage Act, 1936
Ø Employees state insurance Act, 1948
Ø Employees provident fund and miscellaneous Act, 1952
Tamil Nadu shops and establishment Act, 1947:
Ø This law regulates the employment of workers in shops and commercial establishments.
Ø The Act provides for the opening and closing hours of shops and establishments, and provision of weekly holiday with wages.
Ø The officials of the Labour Department who are notified as Inspectors under the Act are competent to initiate prosecution proceedings against the employers who violate the provision of this law.
Ø The Act provides for the compounding of offences committed under this law. This Act gives pride of place to the Tamil Language. This Act requires that in the name board of any shop or commercial establishment the name of the establishment should be written predominantly in Tamil.
Ø This Act is being enforced by 218 Assistant Inspectors of Labour, 68 Deputy Inspectors of Labour and 28 Inspectors of Labour.
Tamil Nadu Maternity Benefit Act, 1961:
Ø The law regulates the employment of women during six weeks immediately after delivery or miscarriage or medical termination of pregnancy
Ø The law safeguards women’s from being employed in hazardous nature of work to pregnant women.
Ø To pay maternity benefits for a maximum period of twelve weeks of which six weeks before delivery and six weeks after delivery provided the women works for a minimum of 80 days in a year.
Ø To grant one month’s leave with wages, in addition to maternity benefits, for illness arising out of pregnancy, delivery, pre-mature birth of a child, miscarriage, medical termination of pregnancy and tubectomy operation.
Ø To give two breaks of 15 minutes each to nursing mothers until the child attains the age of 15 months.
Ø Not to discharges, dismiss during the period of absence allowed under the Act / Rules.
Ø To exhibit abstract of the Act and the Rules in the premises.
Contract Labour Act, 1970:
Ø The Contract Labour (Regulation and Abolition) Act, 1970 is enacted with an object to regulate the employment of contract labour in certain establishments and to abolish this system in certain circumstances and for matters concerned therewith.
Ø This Act applies to any establishment in which 20 or more workmen are employed on any day of the proceeding twelve months as contract labour and to every contractor who employs or employed on any day of the proceeding twelve months 20 or more workmen.
Ø Every contractor has to get license under this Act.
Ø If the benefits under this Act, to the contract labour employed in an establishment are not provided by the contractors within the time specified, the principal employer is liable to provide such amenities.
Payment of Gratuity Act, 1972:
Ø To pay gratuity at the rate of 15 days salary per year of service to employees, who have put in a minimum of 5 years’ service
Note: The calculation of gratuity should be made as follows:
Ø Divide the monthly salary by 26 days and multiply by 15 days and further multiplied by number of years of services. The last years’ service if more than six months to be taken as one year for calculation and in all other years employee should work minimum of 240 days.
Ø To pay gratuity within 30 days from the date of receipt of application by the employee in Form ‘I’.
Ø To obtain nomination in Form F from employees on completion of one year service.
Ø To serve Notice of opening in Form A to jurisdictional controlling authority.
Ø To display abstract of the Acts and Rules in Tamil and English at the premises of establishment.
Ø To maintain and use forms prescribed under the Rules.
Tamil Nadu Industrial Establishments (National and Festival)) Holidays Rules, 1959:
Ø To allow every employee in each calendar year, a holiday on 26th Jan, 15th Aug., 2nd Oct. and five other holidays for such festivals as the employer may specify in consultation with employees.
Ø To submit proposal for the specification of festivals if FORM No.I in duplicate along with a copy of notice in FORM No.II to the Jurisdictional Inspector.
Ø To display holidays list approved in FORM No.III in the premises of establishment.
Ø The employer should send to the Inspector a statement showing the holidays allowed in the calendar year under section 3 in FORM No. V and also display the same in the premises.
Ø The employer should serve a Notice in FORM NO.V-A on the employee who is required to work on any holiday, not less than 24 hours before such holiday.
Ø To give twice the wages to employees who work on holidays or normal wages with a substituted holiday.
Payment of wage Act, 1936:
Ø Any person employed in any organization who is drawing a salary less than 6500 is eligible to avail benefits under this Act
Ø The Act provide for timely and regular payment of wages, on or before 7th in case of less than 1000 employees and on or before 10th in case of more than 1000 employees
Ø The total deduction must not exceed 50% of the total salary
Ø Every employer is required to maintain registers/records in Form No. I, II, III, IV to be kept
for 3 years from last entry.
Employee State Insurance Act, 1948:
Ø To register the factory / establishment, within 15 days by filing Form 01 and to obtain employers code number.
Ø To obtain Declaration, in Form 1 before taking any person into employment, To send declaration forms within 10 days to the ESI Local office along with Return of Declaration in Form 3.
Ø To deduct 1.75% of the wages as employee’s contribution and add 4.75% as employee’s contribution and deposit the same within 21 days of the last day of the calendar month.
Ø To maintain a Register of Employees in Form 7 and make entries of contributions.
Ø To make payment of ESI contributions within 21 days of wage period.
Ø To send Return of Contributions in Form 6 to Local Office within 42 days from the closure of contribution period.
Ø To obtain particulars of employee’s family in Form 1-A and later, any changes in Form 15-B, within 10 days, and submit the same to the local ESI office.
Ø To issue Identity Card, in place of slip, to the employees.
Ø To maintain a bound Inspection Book, prescribed under Regulation 102 A – an Accident Book in Form 15 and to send Accident Report to the local office/dispensary and to others depending upon the seriousness of the accident.
Employee’s provident fund and miscellaneous Act, 1952:
Ø To obtain PF Code Number, soon after employing 20 or more persons, from the Regional/ Sub-Regional PF Commissioner by submitting prescribed forms.
Ø To allot individual PF Number, to each employee and maintain the list in Form 9.
Ø To obtain Nomination and Declaration in Fom.2 from every employee including casual, Temporary, Contract or Regular immediately and obtaining employer’s Code Number.
Ø To deduct 12 % of earned salary (gross of basic + DA+ retaining allowance if any) in the payment.
Ø To pay employee’s share of 12% and employer’s share of 3.67% to the Provident Fund in A/c. No.1 through prescribed common challan, within 15 days from the wage period.
Ø To pay employer’s share of 8.33% to the Pension Fund in A/c. No. 2 through prescribed common challan within 15 days from the wage period.s
Ø To pay PF Administration Charges at 1.10% to A/c. No. 10 through prescribed common challan within 15 days from the wage period.
Ø To pay EDL I charges at 0.5% to A/c. No. 21 through prescribed common challan within 15 days from the wage period.
Ø To pay Inspection charges at 0.01% to A/c. No.22 through prescribed common challan within 15 days from the wage period.
Ø To maintain Contribution Card in Form 3-A separately for all PF members.
Ø To send monthly statement of Contributions in Form 12-A along with copies of paid challan.
Ø To send Form 5 along with the Declaration and Nomination in Form 2 and Form 10 along with Form 3-A.
Ø To send Annual Return in Form 6-A along with Form 3-A before 20th March of each year.
Conclusion:
This self-certification by the IT-ITES companies will be regarded as sufficient compliance with the requirements of the different Acts and the Rules made there under regarding the maintenance of registers and filing of the returns. The first filing shall be manual. Thereafter, the subsequent returns shall be maintained in electronic form. Any distortion of facts while making self-certification will be dealt with stiff penalties. E-filing of returns will be permitted after all the offices of the concerned Inspectors are computerized for receiving such returns.
Reference:
Ø Information Communication Technology, Policy of Tamilnadu (IT Policy) – 2008
Ø Citehr.com
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