Labour law

1. ASK US LEGAL
Advocates & Solicitors

2. LISTING AGREEMENT
DUTIES OF COMPANY SECRETARY
SECRETARIAL AUDIT
DIRECTOR’S RESPONSIBILITY STATEMENT

3. LISTING AGREEMENT
Requirement under Clause 49(I)(C)(iii) of the Listing Agreement: The Board shall
periodically review compliance reports of all laws applicable to the company,
prepared by the company as well as steps taken by the company to rectify instances
of non compliances.

4. Functions of the Company Secretary [Section 205(1)] shall include:
(a) to report to the Board about compliance with the provisions of this Act,
the rules made there under and other laws applicable to the company;
(b) to ensure that the company complies with the applicable secretarial
standards;
(c) to discharge such other duties as may be prescribed
Mandate of Ensuring Legal Compliances by Companies has thus been created
vide Companies Act, 2013, by vesting the responsibility of ensuring legal
compliance on the ‘Company Secretary’.
DUTIES OF COMPANY SECRETARY

5. Every listed company and company belonging to other class of company shall
annex with its boards report, a secretarial audit report given by a company
secretary in practice. [Section 204(1)]
Other class of companies –
Every public company having paid- up share capital of 50 crores rupees or more.
Every public company having a turnover of 250 crores rupees or more.
ICSI’s Mandate (Vide its Letter to Members dated December 22, 2014:
“Examining and reporting whether the adequate systems and processes are in
place to monitor and ensure compliance with general laws like labour laws,
competition law, environmental laws.”
SECRETARIAL AUDIT

6. Directors had devised proper systems to ensure compliance with the provisions
of all applicable laws and that such systems were adequate and operating
effectively. [Section 134(5)(f)]
DIRECTOR’S RESPONSIBILITY STATEMENT

8. Apprentices Act, 1961, read with Apprentices Rules, 1992
Objective & Framework Objective: Regulation & Control of training of apprentices;
Creation of trained manpower with skills through theoretical
and practical training in number of prescribed trades and
occupation.
Primarily deals with matters like:
a) Training & Stipend of Apprentices; their health and safety,
working hours, conditions of service, leaves etc.
b) Record of trainings
c) Maintenance of Registers
d) Filing of Records & Returns
e) Contract of Apprenticeship
Applicability
Key Compliance &
Contentious Issues

9. Apprentices Act, 1961, read with Apprentices Rules, 1992
Objective & Framework
Industrial Establishments where an industry is
carried on (Includes all entities in the private
sector & public sector)
Applicability
Key Compliance &
Contentious Issues

10. Apprentices Act, 1961, read with Apprentices Rules, 1992
Objective & Framework • Dedicated Apprenticeship Training Web-portal
(www.apprenticeship.gov.in) has been launched by
the Ministry of Skill Development & Entrepreneurship,
Govt. Of India (to deal with majority of issues
concerning Apprenticeship Training).
• Conditions of Service (e.g. leaves etc.) of
Apprentices are at times discriminatory/less
favourable as compared to regular
workers/employees.
• Apprentices cannot claim right to employment and
the status as workmen (Decided by Hon’ble Supreme
Court in UP State Electricity Board vs Shri Shiv Mohan)
Applicability
Key Compliance &
Contentious Issues

11. Contract Labour (Regulation and Abolition) Act, 1970, read with
applicable State Rules
Objective & Framework Objective: Regulate the employment of contract labour in
certain establishments.
Primarily deals with matters like:
a) Registration of Establishment by Principal Employer (P.E.),
Licensing of Contractors, Liability of Principal Employer
(Canteen, rest rooms, drinking water etc. ) & Contractors
(Payment of timely & minimum wages, deposit of statutory
dues e.g. PF,ESI on time etc.)
b) Maintenance of Registers (Muster Roll, Wages Register,
Deductions Register etc.) by Contractor, as well as P.E.
(Register of Contractors)
c) Filing of Annual Returns by P.E.; Half Yearly Returns by
Contractor; Filing of Notice of Commencement 7
Completion of Contract work.
d) Displays to be made by P.E. Registration Certificate;
Abstract of Act (generally in English, Hindi & local
language) & Display of Rates of Wages, Hours of Work,
Wage Period etc.
Applicability
Key Compliance &
Contentious Issues

12. Contract Labour (Regulation and Abolition) Act, 1970, read with
applicable State Rules
Objective & Framework
Establishment where 20 or more workman are
employed on any day of the preceding 12
months as contract labour
Contractor who employs or who employed on
any day of the preceding 12 months, 20 or
more workmen
Applicability
Key Compliance &
Contentious Issues

13. Contract Labour (Regulation and Abolition) Act, 1970, read with
applicable State Rules
Objective & Framework  Contract Labour should not be engaged for main
activities of establishment, but for ancillary activities –
else same wages/salary and conditions of service need to
be provided to Contract labour as is provided to Regular
Workmen.
 Statutory Obligations of Contract Labour need to be
incorporated in contracts with Contractors, else P.E. is
liable for statutory dues e.g. PF,ESI etc.
 Contractor should engage in purpose as stated in the RC
of PE & should provide workers as stated in PE’s RC.
Applicability
Key Compliance &
Contentious Issues

14. Employees' Provident Funds and Miscellaneous Provisions Act, 1952, read
with Employees Pension Scheme, 1995
Objective & Framework Objective: Regulation of provident fund, pension fund
and deposit-linked insurance fund for employees in
factories and other establishments.
Primarily deals with matters like:
a) Calculations & deposit of provident fund(PF) within
prescribed statutory period;
b) Filing of statutory returns (now reduced owing to
Monthly ECR)
c) PF Transfer, Loan against PF, Pension payments etc.
Applicability
Key Compliance &
Contentious Issues

15. Employees' Provident Funds and Miscellaneous Provisions Act, 1952, read
with Employees Pension Scheme, 1995
Objective & Framework
Every factory/ establishment in which 20 or
more persons are employed or as notified by
the Central Government, even to an
establishment having less than 20 persons.
Applicability
Key Compliance &
Contentious Issues

16. Employees' Provident Funds and Miscellaneous Provisions Act, 1952, read
with Employees Pension Scheme, 1995
Objective & Framework  What constitutes as ‘Salary’ for the purpose of PF
Deduction.
 ‘Salary’ for PF calculation should not be less than
the ‘Minimum Wages’ (to be checked particularly in
case of ‘Contract Labour’ deployed through
Contractors).
 Option of Voluntary Provident Fund(VPF) to be
provided to employees/workers – in writing (although
Employer not oblized to contribute equal amount)
 Once a PF Member in any organization, cannot be
left out of coverage, merely because he draws
remuneration above the prescribed wage/salary
ceiling (presently Rs. 15,000/- per month).
 Principal Employer responsible for default of
Contractor, w.r.t. statutory payments of PF
contribution of Contract Labour.
Applicability
Key Compliance &
Contentious Issues

17. Employment Exchange (Compulsory Notification of Vacancies) Act, 1960, read
with Employment Exchange (Compulsory Notification of Vacancies) Rules, 1960
Objective & Framework Objective: Compulsory notification of all vacancies in the
establishments of private sector (25 or more persons employed) &
all establishments of public sector to the employment exchanges,
except the following:
a) Vacancies proposed to be filled through promotion or
absorption of surplus staff of any branch or department of the
same establishment
b) On the result of any exam/interview conducted or interview
held by or on recommendation of any independent agency
e.g. UPSC etc.
c) Employment in Private Sector(in agriculture); Employment in
domestic service or to do Unskilled Job; Total duration of
employment is less than 3 months.
Applicability
Key Compliance &
Contentious Issues

18. Employment Exchange (Compulsory Notification of Vacancies) Act, 1960, read
with Employment Exchange (Compulsory Notification of Vacancies) Rules, 1960
Objective & Framework Primarily deals with matters like:
 Notification of vacancies (15 days in advance of filling up);
Notification of selection result (within 15 days of selection) to
Employment Exchange.
 Submission of Quarterly Return; Biennial Return, Display of
Abstract of Act (English & Local language)
Applicability
Key Compliance &
Contentious Issues

19. Employment Exchange (Compulsory Notification of Vacancies) Act, 1960, read
with Employment Exchange (Compulsory Notification of Vacancies) Rules, 1960
Objective & Framework
All establishments of private sector (wherein 25
or more persons employed) & all establishments
of public sector
Applicability
Key Compliance &
Contentious Issues

20. Employment Exchange (Compulsory Notification of Vacancies) Act, 1960, read
with Employment Exchange (Compulsory Notification of Vacancies) Rules, 1960
Objective & Framework
 Lack of Awareness of Law amongst corporate
entities
 Directorate of Employment (State
Government) creating dedicated web-portal for
Registration of Establishments; Candidates;
Notification of Vacancies etc.
Applicability
Key Compliance &
Contentious Issues

21. Employees State Insurance Act, 1948
Objective & Framework Objective: Compulsory insurance of a specified class
of wage earners against certain inevitable risks.
Primarily deals with matters like:
a) Calculations & deposit of ESI contribution (ESI)
within prescribed statutory period;
b) Filing of statutory returns (now reduced owing to
electronic filings)
c) Medical benefits, old age medical care, maternity
benefit/bonus, unemployment allowances,
dependants benefits etc.
Applicability
Key Compliance &
Contentious Issues

22. Employees State Insurance Act, 1948
Objective & Framework
Applicable to all factories and establishments
other than seasonal factories (in which 10 or
more workers are employed)
Applicability
Key Compliance &
Contentious Issues

23. Employees State Insurance Act, 1948
Objective & Framework
 Principal Employer responsible for default of
Contractor, w.r.t. statutory payments of ESI
contribution of Contract Labour.
 Establishment to be registered on having 10
employees/workers (irrespective of the fact whether
there is not even 1 eligible employee – i.e. Drawing
salary/wages as prescribed under the Act, for
applicability of this Act – presently Rs. 15,000/- per
month)
Applicability
Key Compliance &
Contentious Issues

24. Payment of Bonus Act, 1965, read with Payment of Bonus Rules, 1965
Objective & Framework Objective: Payment of bonus to persons employed in
establishments/factory on the basis of profits or on the basis
of production or productivity.
Primarily deals with matters like:
a) Eligibility of Bonus (employees/workers drawing
salary/remuneration of Rs. 21,000/- per month),
Computation of gross profits/ availability surplus of the
establishment; Payment of Minimum (8.33% of Salary) &
Maximum Bonus (20% of Salary); Payment within statutory
time limit of 8 months of close of financial year.
b) Maintenance of Registers/Records(Form A, Form B, Form
C); Filing of Annual Returns(Form D)
Applicability
Key Compliance &
Contentious Issues

25. Payment of Bonus Act, 1965, read with Payment of Bonus Rules, 1965
Objective & Framework
a) Applicable to every factory (as defined under
Factories Act)
b) Establishment in which 20 or more persons
are employed on any day during an
accounting year.(CG may specify lesser no.
of employees)
Applicability
Key Compliance &
Contentious Issues

26. Employees State Insurance Act, 1948
Objective & Framework
 Violation of statutory provisions (including
provisions of payment of bonus, records,
returns etc. - particularly by Contractors)
Applicability
Key Compliance &
Contentious Issues

27. Employees‘ Compensation Act, 1923, read with Employees‘
Compensation Rules, 1924
Objective & Framework Objective: Compensation to certain classes of
workmen/employees by their employers for injury
which may be suffered by them, as a result of an
accident during the course of employment.
Primarily deals with matters like:
a) Amount of compensation, liability of
compensation, reporting of fatal accidents etc.
b) Filing of Report of fatal accident etc., Annual
Return as to compensation, Display of abstract of
Act.
Applicability
Key Compliance &
Contentious Issues

28. Employees‘ Compensation Act, 1923, read with Employees‘ Compensation Rules,
1924
Objective & Framework
• Applicable to factories/establishments, when
personal injury is caused to employee (as
defined in Act) resulting in total or partial
disablement of the employee for a period
exceeding three days by accident arising out
of and in the course of his employment.
Applicability
Key Compliance &
Contentious Issues

29. Employees‘ Compensation Act, 1923, read with Employees‘ Compensation Rules,
1924
Objective & Framework
 Non-reporting of matters (particularly w.r.t.
Contractual Workmen)
Applicability
Key Compliance &
Contentious Issues

30. Minimum Wages Act, 1948
Objective & Framework Objective: Fixing minimum rates of wages in certain
scheduled employments.
Primarily deals with matters like:
a) Payment of minimum wages, fixing hours of
normal work, overtime etc.
b) Maintenance of Registers & Records, issue of wage
slips etc.
Applicability
Key Compliance &
Contentious Issues

31. Minimum Wages Act, 1948
Objective & Framework
Applicable to all scheduled employments (as
specified in the schedule and the entries of the
state government in the schedule, e.g. factories,
commercial establishments etc.)
Applicability
Key Compliance &
Contentious Issues

32. Inter-State Migrant Workmen (Regulation of Employment and Conditions
of Service) Act, 1979
Objective & Framework Objective - For regulation of employment of
inter state migrant workman & provide for their
conditions of service and matters connected
therewith.
Primarily deals with matters like:
a) Registration of establishments
b) License of Contractors, welfare and other
facilities provided to the inter state workmen
etc.
Applicability
Key Compliance &
Contentious Issues

33. Inter-State Migrant Workmen (Regulation of Employment and Conditions
of Service) Act, 1979
Objective & Framework
• To every establishment/ contractors
employing five or more Inter-State migrant
workmen on any day of the preceding twelve
months.
Applicability
Key Compliance &
Contentious Issues

34. Inter-State Migrant Workmen (Regulation of Employment and Conditions
of Service) Act, 1979
Objective & Framework
 Lack of awareness of this law.
Not very relevant in present day context (good
amount of overlapping with Contract Labour Act
provisions)
Applicability
Key Compliance &
Contentious Issues

35. Industrial Employment (Standing Orders) Act, 1946 r/w rules
Objective & Framework Objective: Defining the conditions of employment by
the employers in industrial establishments and make
the said conditions known to workmen employed by
them
Primarily deals with matters like:
 Submission of draft Standing Orders to the
certifying officer and getting the same approved.
 Standing orders to cover matters like classification
of workmen, hours of work, holidays, leaves,
misconduct, suspension/termination rules etc.
 Display of certified Standing Orders
Applicability
Key Compliance &
Contentious Issues

36. Industrial Employment (Standing Orders) Act, 1946 r/w rules
Objective & Framework
• Every industrial establishment wherein
50/100 or more workmen are employed
Applicability
Key Compliance &
Contentious Issues

37. Industrial Employment (Standing Orders) Act, 1946 r/w rules
Objective & Framework
 Lack of awareness in workmen
Non display of certified standing orders
Applicability
Key Compliance &
Contentious Issues

38. Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013 r/w rules
Objective & Framework Objective- To protect and prevent women from any
sexual harassment in their places of work & to aid
them in leading a healthy and safe professional life in
the society while protecting their constitutional rights
and maintaining their dignity
Primarily deals with matters like:
a) Constitution of Internal Complaints Committee
(ICC), with majority constitution of women and an
external nominee who is familiar with issues of
sexual harassment
b) Issuance of order of ICC constitution
c) Conduct awareness workshops at regular intervals
d) Display of penal consequences of sexual
harassment
Applicability
Key Compliance &
Contentious Issues

39. Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013 r/w rules
Objective & Framework
This act is applicable if an employer has
employed a women workmen in workplace
Applicability
Key Compliance &
Contentious Issues

40. Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013 r/w rules
Objective & Framework
 Lack of awareness and non-seriousness of
this law (particularly SME’s).
Representation of management in ICC
Lack of competency and understanding of this
law in ICC members
Applicability
Key Compliance &
Contentious Issues

41. Payment of Wages Act, 1936 r/w rules
Objective & Framework Objective-To regulate payment of wages of
certain classes of employed persons
Primarily deals with matters like:
 Display of abstract of acts & rules
 Maintenance of registers, filing of returns etc
 Payment of wages within 7 days/ 10 days of
succeeding month
Applicability
Key Compliance &
Contentious Issues

42. Payment of Wages Act, 1936 r/w rules
Objective & Framework
• Factories, Industrial Establishment, Air
transport services, inland vessels etc
Applicability
Key Compliance &
Contentious Issues

43. Equal Remuneration Act, 1976 r/w rules
Objective & Framework Objective: To provide for payment of equal
remuneration to men & women workers & for the
prevention of discrimination on ground of sex against
women in matters of employment and for connected
or incidental matters
Primarily deals with matters like:
 Register maintenance
 Prohibition of discrimination of recruiting women &
Payment of equal remuneration to me & women
Applicability
Key Compliance &
Contentious Issues

44. Equal Remuneration Act, 1976 r/w rules
Objective & Framework
 Applicable to all establishment and factories
Applicability
Key Compliance &
Contentious Issues

45. Payment of Gratuity Act, 1972 r/w rules
Objective & Framework Objective: It is a social security measure for
employee who have rendered continuous
service for five years or more
Primarily deals with matters like:
 Registration of establishment
 Payment of Gratuity
Display of notice/abstract of act & rules
etc
Applicability
Key Compliance &
Contentious Issues

46. Payment of Gratuity Act, 1972 r/w rules
Objective & Framework
• Factory, company, shop, establishment,
education institution, employing 10 or more
employees
Applicability
Key Compliance &
Contentious Issues

47. Factories Act, 1948 r/w rules
Objective & Framework Objective: Regulation of Factories
Primarily deals with matters like:
a)Safety measures, welfare measures (clean
drinking water, rest shelter, canteen, OHS
etc.)
b)working hours, spread over, over time etc.
Applicability
Key Compliance &
Contentious Issues

48. Factories Act, 1948 r/w rules
Objective & Framework
Applicable to all factories wherein 10 or more
persons are/were employed with the aid of
power or 20 or more workers are/were
employed without the aid of power, on any day
in the preceding 12 months.
Applicability
Key Compliance &
Contentious Issues

49. Maternity Benefit Act, 1961 r/w rules
Objective & Framework Objective: To provide full and healthy maintenance of
woman and her child when she is not working
Primarily deals with matters like:
a) Conditions for claiming benefits,
b) Leave for illness arising out of pregnancy etc.
c) Grant of maternity leaves, with benefits
Applicability
Key Compliance &
Contentious Issues

50. Maternity Benefit Act, 1961 r/w rules
Objective & Framework
For all women employees either employed
directly or through contractor in factories, other
establishments etc.
Applicability
Key Compliance &
Contentious Issues

51. Maternity Benefit Act, 1961 r/w rules
Objective & Framework
No difference between Temporary, Contractual
or permnanet workment – hence contractor to
provide benefits, else P.E. Is liable
Applicability
Key Compliance &
Contentious Issues

52. Shops and Establishments Law
Objective & Framework Objective: Regulation of conditions of work and
employment in Shops and commercial establishments
Primarily deals with matters like:
a) Registration of establishment,
b) Hours of employment, overtime wages, Condition
of employment of women, spreadover, leaves,
overtime etc.
c) Display of licence
d) Maintenance of Registers in prescribed format
Applicability
Key Compliance &
Contentious Issues

53. Shops and Establishments Law
Objective & Framework
Applicable to all establishments/ commercial
establishments
Applicability
Key Compliance &
Contentious Issues

54. Shops and Establishments Law
Objective & Framework
 Violation of spreadover hours, overtime hours,
rates of overtime wages
Non maintenance of Registers in prescribed
formats by employers
Non display of licence
Applicability
Key Compliance &
Contentious Issues

56. Contact: Ravi Chhabra (Managing Counsel)