summer internship project report

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AN ASSESSMENT OF AWARENESS OF STATUTORY COMPLIANCES :A
STUDY OF ULTIMATE FLEXIPAK LTD.
Project report submitted to
CENTRAL UNIVERSITY OF JAMMU
In partial fulfilment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
BY
SUMIT SINGH BANDRAL
ROLL NO. 3200716
Department of HRM& OB
Under the Supervision of
Mr. PANKAJ SINGH
HR-HEAD
ULTIMATE FLEXIPAK LTD.
Bari Brahmana, Jammu
Academic Year 2016-2018

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DECLARATION
I hereby declare that the work incorporated in this report is carried out by me in the HR
department of Ultimate Flexipack Ltd. Bari Brahmana, Jammu under the supervision of Mr.
Pankaj Singh. The extended sources of information derived from the existing literature have been
indicated throughout in the project report at appropriate places.
I undertake that the data presented herein is being submitted as a partial fulfilment of the
requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION
(HRM & OB), CENTRAL UNIVERSITY OF JAMMU and will not be used or modified in any
form for any conditions.
SUMIT SINGH BANDRAL
ROLL-NO-3200716
DEPARTMENT OF HRM &OB

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ACKNOWLEDGEMENT
I would like to express my gratitude towards my institution CENTRAL UNIVERSITY OF
JAMMU, which created a great platform to attain profound technical skills in the field of MBA,
thereby fulfilling my most cherished goal.
I would like to extend sincere thanks to my Project Supervisor, MR.PANKAJ SINGH, HR-
HEAD ULTIMATE FLEXIPAK LTD for his guidance and constant supervision as well as for
providing the necessary information regarding the project and also his support for completion of
the project. This project would not have been completed without the support of
MR.RAVINDRA KUMAR ROY , MRS.JASMEET KAUR and MISS.NEETU.
I extend my sincere gratitude to PROF. ASHOK AIMA, Vice Chancellor, Central University of
Jammu and all the faculty members for their guidance for successful completion of project
report. I would like to express my gratitude towards the employees of Ultimate Flexipak Ltd.,
Bari Brahmana Jammu for their co-operation in filling the questionnaire which helped me in
completion of this project.
SUMIT SINGH BANDRAL

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EXECUTIVE SUMMARY
Ultimate Flexipack Ltd. has pioneered technology in manufacturing polyethylene films. UFL has
most modern manufacturing facilities, hygienic clean room environment and is pioneer having
been certified both for ISO 9001: 2008 & ISO 22000:2005 (FSMS).
UFL Limited is committed to conducting its business in accordance with the applicable laws,
rules and regulations and with highest standards of business ethics.. The Directors and
Designated Officers of the Company not only comply with applicable laws, rules and regulations
but also promote honest and ethical conduct of the business. Their responsibilities include
helping to create and maintain a culture of high ethical standards and commitment to
compliance, and to maintain a work environment that encourages the stakeholders to raise
concerns to the attention of the management. Statutory compliance under various labor laws has
to be ensured by establishments. It is not just limited to the statutory deposits, returns and records
to be maintained by the employer under various labor laws, but also to represent them in case of
prosecution under various statutes.
The company follows labour laws for the welfare of employees and the HR department takes the
responsibility of guiding the labourers about various welfare measures and services they can
avail within the company. The study was carried out with the insight to understand the various
acts that the company has to follow under the legislation. Further the awareness of employees
towards the statutory compliances was studied through the data collection. The data was
collected through questionnaire and then scattered plot was studied to determine the correlation
between the number of employees awareness frequency and their income classes . The
correlation between the income level and awareness level of employees was calculated by
determining the value of correlation coefficient. The labourers were unaware about the recent
amendments under various acts.. Moreover there was no previous study on the awareness levels
of employees at Ultimate Flexipak ltd. under statutory compliances and some suggestions were
proposed to increase the awareness among the employees to the various benefits under the acts.

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LIST OF TABLES
S. No DESCRIPTION PAGE NO.
1 Contribution and benefit periods under ESI Act 21
2 Penalties under ESI Act 24-25
3 Forms under ESI Act 26
4 Contribution details 27
5 Forms under Pf and miscellaneous provisions Act 30-31
6 Mean of social security legislations studied 52
7 Income distribution of respondents and the awareness frequency 53

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LIST OF GRAPHS
S. NO DESCRIPTION PAGE NO.
1 Eligibility distribution under ESI Act 42
2 Contribution awareness distribution under ESI Act 43
3 ESI submission awareness distribution 43
4 Distribution of awareness in the amendments under ESI Act 44
5 Employees provident fund distribution 44
6 EPF deduction distribution 45
7 Contribution distribution under EPF Act 45
8 Distribution of administrative deductions under PF Act 46
9 Awareness distribution of payment of gratuity act 46
10 Gratuity exemption distribution 47
11 Awareness towards the gratuity payment under the Act 47
12 Gratuity payment in case of contractual employees 48
13 Eligibility of bonus payment distribution 48
14 Awareness about rate at which bonus is paid 49
15 Minimum eligibility for payment of bonus 49
16 Submission of bonus details awareness distribution 50
17 Awareness of minimum wages payment 50
18 Overtime wages payment distribution 51
19 Wages payment period distribution 51
20 Deduction of wages awarenessdistribution 52
21 Income and awareness levelcorrelation graph 53

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TABLE OF CONTENT
CHAPTER 1- INTRODUCTION PAGE NO.
1.1 Company Introduction 9
1.2 Company Profile 10
1.3 Company Values 10-11
1.4 UFL clientele 11
1.5 HR policies and Practices 12-13
CHAPTER 2- REVIEW OF LITERATURE 14-15
CHAPTER 3- STATUTORY COMPLIANCES
3.1 Introduction to Statutory compliances 16
3.2 The Payment of Wages Act,1936 16-20
3.3 Employees State Insurance Act,1948 (ESI) 20-26
3.4 Employees Provident fund (PF) and Miscellaneous
Provisions act,1952
26-31
3.5 The payment of Bonus act,1965 31-34
3.6 The payment of Gratuity Act,1972 34-38
CHAPTER 4- RESEARCH METHODOLOGY
4.1 Identification of problem 39
4.2 Objectives of the study 39
4.3 Data Source and Data collection 39-40

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4.4 Sample Design 40
4.5 Relevance of the study 40
4.6 Scope of the study 41
4.7. Limitation of the study 41
CHAPTER 5- DATA ANALYSIS AND INTERPRETATION 42-54
CHAPTER 6- FINDINGS AND SUGGESTIONS
6.1 Findings 55-57
6.2 Suggestions 57-58
CHAPTER 7- CONCLUSION 59
REFERENCES &BIBLIOGRAPHY 60-62
ANNEXURE A 63-64

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CHAPTER -1:INTRODUCTION
1.1.COMPANY INTRODUCTION
Ultimate Flexipack Ltd(UFL), is the largest manufacturer of multilayer polyethylene films .UFL
is equipped and has high focus to produce world class food grade polyethylene films having high
DART value coupled with excellent seal strength, integrity and optical properties. UFL
polyethylene films have high performance polymers e.g Metallocene & Enable, which offer
excellent barrier properties and long shelf life.
UFL team consists of highly technically qualified, committed and talented professionals. Among
them, they have decades of experience in flexible packaging industry. Today, UFL product range
of polyethylene films cover Milk, Oil, Ghee, Liquor, Detergent, General purpose (paneer,
noodles, pulses, etc.), PMT (Pan Masala & Tobacco), misc. products (pesticides, bulk drugs &
adhesives, etc.), Bread and Garments.
All the equipments are IBC controlled and are capable of manufacturing width ranging upto
3200 mm. UFL machines are equipped with Electronic Process Control(EPC) system and
Automatic Feeding system. Due to this, UFL is able to produce high clarity PE films and having
best possible gauge control in these films. They are producing PE films in transparent, opaque
and special colors such as blue , yellow, black etc and in various thickness, ranging from 15
micron to 195 micron for varied applications. UFL can provide the film as per the customers
requirements for various applications as per their needs. These films are tailor made and highly
specialized for various applications requiring special nitrogen flushing properties and high dart.
They are the pioneer in producing specialized PE films for reverse printing and lamination with
PE films( Poly- Poly laminates).
These films are highly economical and best suited for packing of grocery items like Atta and Oil.
Products currently being packed includes chips, Hair Oil, Detergents, Noodles, Atta, tea, Taste
Maker and other grocery items.

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1.2.COMPANY PROFILE
UFL has a production capacity of 72000 MT per annum.
 First PE Film company to be awarded with ISO 9001: 2008 & ISO 22000:2005 (FSMS)
certificates.
 PE film production commenced in 2005.
 UFL is equipped and has high focus to produce world class food grade polyethylene films
having high DART value coupled with excellent seal strength, integrity and optical
properties.
 UFL team consists of highly technically qualified, committed and talented professionals.
Today, UFL product range of polyethylene films cover Milk, Oil, Ghee, Liquor,
Detergent, General purpose (Cheese, noodles, pulses, etc. etc.), misc. products
(pesticides, bulk drugs & adhesives, etc.), Bread and Garments.
 All UFL equipments are IBC controlled and are capable of manufacturing width ranging
upto 3200 mm.
 Turnover of Rs. 445 Cr in the year 2010-2011.
1.3.COMAPNY VALUES
1.3.1Trust & Respect
 Actively build relationships with all the stakeholders, fostering trust by listening,
following through and keeping word in an open and inclusive environment and treating
each person with respect.
1.3.2.Customer Value Creation
 Enabling customers to become high-performance businesses through total packaging
solutions and creating long-term relationships by being responsive, relevant and by
consistently delivering value.

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1.3.3.Innovation
 Strive to be the best- in technology and business, actively contributing to the evolution of
best practices and striving to develop new packaging solutions to address customer needs.
1.3.4.Global Perspective
 Leveraging the power of global insight, relationships, collaboration and learning to
deliver exceptional packaging solutions to the clients wherever they do business.
1.3.5.Speed in all directions
 To set the principle of Speed and efficiency in every activity in responding to internal and
external customers with a sense of urgency. Anticipating market opportunities and
continuously striving to practice "quick decision – quick investment – quick execution –
quick adaptation and quick customer service".
1.4.UFL CLIENTELE

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1.5.HR POLICIES AND PRACTICES
1.5.1.Attendance Management
The policy establishes ways of optimizing work attendance, balancing fairness to the employee
and maintaining work efficiency. The policy has been developed in accordance with the
following goals:
1. To contribute to excellent service delivery by having employees attend work regularly.
2. To implement measures that minimize absenteeism.
3. To resolve attendance problems in a positive manner.
4. To provide management support and training on attendance problems.
1.5.2.Compensation management
The compensation policy is designed to create an environment which will:
1. Attract, retain and reward high-quality staff.
2. Provide internal equity through consistent application of job evaluation.
3. Pay salaries that are competitive with rates for similar positions in the labor market.
4. Reward staff for individual and team performance.
1.5.3.Whistle blower Policy
Report all suspected violations to
(i) Immediate supervisor;
(ii) the Global Head Compliance – Immigration and Employee Matters; or
(iii) anonymously, by sending an e‐mail to the HR Head
Report should include as much information about the suspected violation or breach of code of
conduct. Where possible, information about the nature of the suspected violation; the identities
of persons involved in the suspected violation; a description of documents that relate to the
suspected violation; and the time frame during which the suspected violation occurred. All

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reports under this Policy will be promptly and appropriately investigated by the concerned
Officials / Chairman of the Audit Committee, to whom the complaint was sent, and all
information disclosed during the course of the investigation will remain confidential, except as
necessary to conduct the investigation and take remedial actions, in accordance with applicable
law. Everyone working for or with the Company has a duty to cooperate in the investigation of
reports of violations. Failure to cooperate in an investigation or deliberately providing false
information during an investigation, can be the basis for disciplinary action, including
termination of employment. If, at the conclusion of the investigation, the Company determines
that a violation has occurred, the Company will take effective remedial action commensurate
with the nature of the offense. Appropriate disciplinary action will be taken against the person
involved in violation. This action may include disciplinary action against the accused party and
including termination or services. Reasonable and necessary steps will also be taken to prevent
any further violations of the nature of violations noticed.
1.5.4.Leave Policy
 Company provides 6 days of casual leave per year.
 Company also provides 6 days of sick leave, which can be availed by the employees at
the time of sickness, where doctor’s certificate is compulsory for the sanctioning of leave.
 Apart from that a special annual leave is computed on continuous service of an employee
for 240 days in a year, which is variable in nature.
1.5.5.Career Planning Policy
UFL believes that it is their responsibility to develop employees to their fullest potential so that
future challenges could be met with existing talents.
1.5.6.Employees Bonus
Company offers an annual bonus to labourers based on the payment of bonus act. to share the
prosperity of the organization with its work force, in recognition of their contribution towards the
growth of the organisation. The employees whose basic pay is above 10,000/- are given ex
gratia.

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CHAPTER -2:REVIEW OF LITERATURE
Amir Jafar, Amitava Ghosh (2013) studied the relationship between labour laws and
development in the Indian context . In India, the Centre as well as the States can enact
legislations relating to labour in their respective jurisdiction. As a result, we have a plethora of
labour laws which has complicated the labour regulation system. There are about fifty central
laws and several state laws covering different aspects relating to labour which are enforced and
monitored under different tier in hierarchy which has further confused the entire scenario. But
these labour laws mainly focus on the organized sector and are often criticized for being
excessively pro-worker, which infuses rigidity and hampers performance.
Ashwany Kumar Sharma, Dr. Darshan Singh(2013), The research was undertaken to examine
the extent of awareness among Textile workers about the Social Security Legislations. The
analysis reveals that awareness of different provision of social welfare legislations has not
percolated down to praxis level in the real sense. The workers are aware of only the some
provisions of the legislations especially those are generally used by the workers. The level of
awareness of workers in case of disablement, dependent and funeral benefits is very low.
Divya. M., Dr. B. Vijayachandran Pillai (2014) carried out the study of awareness and
satisfaction of employee state insurance scheme in the service sector in Kerala. ESI scheme is a
very large social security network. The scheme encompasses basic economic risks namely
health, sickness, disability, death and maternity. It is different from other types of insurance like
health insurance that it provides full amount of medical bill irrespective of the premium
contribution.
Ghosh et al.(2007) studied the conditions of work and status of social security: The case of
workers in display board work.
Jens Lerche et al. (2013) K. Anandhi , Dr. T. Sivagnanasithi(2014). The study assesses the
ILO decent work agenda in the Global South: its objectives and coherence, its impact on labour
relations and conditions, and its overall policy direction in relation to alternative labour rights
and welfare policy thinking.

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Jonathan Meer, Jeremy West(2015) The voluminous literature on minimum wages offers little
consensus on the extent to which a wage floor impacts employment. The minimum wage will
impact employment over time, through changes in growth rather than an immediate drop in
relative employment levels.
K. Anandhi , Dr. T. Sivagnanasithi(2014) The study had been undertaken to examine the
performance of the Employees’ State Insurance Corporation. More specifically, the study
attempts to study the perception of employees on ESI scheme.
Madhava.P. Rao(2005) studied the Provident fund and pension scheme in India. The
Employees Provident Fund Organisation which is the largest Social Security organization in
terms of its coverage for Old Age income and survivor benefit programmers for the industrial
workers has covered over Million people working in the business houses in India. Nevertheless,
coverage of total population, at least total working population, has been the demand of the social
security thinkers and economists in the liberalized economy of India.

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CHAPTER -3:STATUTORY COMPLIANCES
3.1.INTRODUCTION TO STATUTORY COMPLIANCES
Statutory means "of or related to statutes," or what we normally call laws or regulations.
Compliance just means to comply with or adhere to. So statutory compliance means you are
following the laws on a given issue. The term is most often used with organizations, who must
follow lots of regulations. When they forget or refuse to follow some of those regulations, they
are out of statutory compliance. A company that follows all the rules, is in statutory compliance.
3.1.1.Purpose
Safeguarding the employees and the enterprise from untoward risks by managing and consulting
on issues such as retirement benefits and Taxation.
3.2.THE PAYMENT OF WAGES ACT,1936
3.2.1Objective of the act
 To avoid unnecessary delay in payment of wages.
 To prevent unauthorized deductions from wages.
3.2.2.Fixation of wage period
Every person responsible for the payment of wages under section 3 shall fix periods (in this Act
referred to as wage-periods) in respect of which such wages shall be payable. No wage-period
shall exceed one month.
3.2.3.Time of payment of wages
(1) The wages of every person employed upon or in -
(a) any railway factory or industrial or other establishment upon or in which less than one
thousand persons are employed, shall be paid before the expiry of the seventh day,
(b) Any other railway factory or industrial or other establishment shall be paid before the expiry
of the tenth day, after the last day of the wage-period in respect of which the wages are payable.

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(2) Where the employment of any person is terminated by or on behalf of the employer the
wages earned by him shall be paid before the expiry of the second working day from the day on
which his employment is terminated.
(3) The State Government may by general or special order exempt to such extent and subject to
such conditions as may be specified in the order the person responsible for the payment of wages
to persons employed upon any railway (otherwise than in a factory) or to persons employed as
daily-rated workers in the Public Works Department of the Central Government or the State
Government from the operation of this section in respect of wages of any such persons or class
of such persons: Provided that in the case of persons employed as daily-rated workers as
aforesaid no such order shall be except in consultation with the Central Government.
(4) Save as otherwise provided in sub-section (2) all payments of wages shall be made on a
working day.
3.2.4.Mode of payment
All wages shall be in current coin or currency notes or in both: Provided that the employer may
after obtaining the written authorisation of the employed person pay him the wages either by
cheque or by crediting the wages in his bank account.
3.2.5.Deductions which may be made from wages
 Admissible deductions such as fines.
 Advance paid
 Overpayment of wages
 A loan grant for building, house or for other purposes
 Provident fund contribution.
 Payment to cooperative societies
 Premium of life insurance
 Recovery of loss
 ESI deductions

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3.2.6.Fines
(1) No fine shall be imposed on any employed person save in respect of such acts and omissions
on his part as the employer with the previous approval of the State Government or of the
prescribed authority may have specified by notice under sub-section (2).
(2) A notice specifying such acts and omissions shall be exhibited in the prescribed manner on
the premises in which the employment carried on or in the case of persons employed upon a
railway (otherwise than in a factory) at the prescribed place or places.
(3) No fine shall be imposed on any employed person until he has been given an opportunity of
showing cause against the fine or otherwise than in accordance with such procedure as may be
prescribed for the imposition of fines.
(4) The total amount of fine which may be imposed in any one wage-period on any employed
person shall not exceed an amount equal to three per cent of the wages payable to him in respect
of that wage-period.
(5) No fine shall be imposed on any employed person who is under the age of fifteen years.
(6) No fine imposed on any employed person shall be recovered from him by instalments or after
the expiry of sixty days from the day on which it was imposed.
(7) Every fine shall be deemed to have been imposed on the day of the act or omission in respect
of which it was imposed.
(8) All fines and all realisations thereof shall be recorded in a register to be kept by the person
responsible for the payment of wages under section 3 in such form as may be prescribed; and all
such realisations shall be applied only to such purposes beneficial to the persons employed in the
factory or establishment as are approved by the prescribed authority.
3.2.7.Deductions for absence from duty
(1) Deductions may be made under clause (b) of sub-section (2) of section 7 only on account of
the absence of an employed person from the place or places where by the terms of his

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employment, he is required to work such absence being for the whole or any part of the period
during which he is so required to work.
(2) The amount of such deduction shall in no case bear to the wages payable to the employed
person in respect of the wage-period for which the deduction is made in a larger proportion than
the period for which he was absent bears to the total period within such wage-period during
which by the terms of his employments he was required to work:
Provided that subject to any rules made in this behalf by the State Government if ten or more
employed persons acting in concert absent themselves without due notice (that is to say without
giving the notice which is required under the terms of their contracts of employment) and
without reasonable cause such deduction from any such person may include such amount not
exceeding his wages for eight days as may by any such terms be due to the employer in lieu of
due notice.
3.2.8.Deductions for damage or loss
(1) A deduction under clause (c) or clause (o) of sub-section (2) of section 7 shall not exceed the
amount of the damage or loss caused to the employer by the neglect or default of the employed
person.
(1A) A deduction shall not be made under clause (c) or clause (m) or clause (n) or clause (o) of
sub-section (2) of section 7 until the employed person has been given an opportunity of showing
cause against the deduction or otherwise than in accordance with such procedure as may be
prescribed for the making of such deductions.
(2) All such deductions and all realisations thereof shall be recorded in a register to be kept by
the person responsible for the payment of wages under section 3 in such form as may be
prescribed.
3.2.9.Deductions for services rendered
A deduction under clause (d) or clause (e) of sub-section (2) of section 7 shall not be made from
the wages of an employed person, unless the house-accommodation amenity or service has been
accepted by him as a term of employment or otherwise and such deduction shall not exceed an

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amount equivalent to the value of the house-accommodation amenity or service supplied and in
the case of deduction under the said clause (e) shall be subject to such conditions as the State
Government may impose.
3.2.10.Deductions for recovery of advances
Deductions under clause (f) of sub-section (2) of section 7 shall be subject to the following
conditions namely:
(a) recovery of an advance of money given before employment began shall be made from the
first payment of wages in respect of a complete wage-period but no recovery shall be made of
such advances given for travelling-expenses;
(aa) recovery of an advance of money given after employment began shall be subject to such
conditions as the State Government may impose;
(b) recovery of advances of wages not already earned shall be subject to any rules made by the
State Government regulating the extent to which such advances may be given and the
instalments by which they may be recovered.
3.2.11.Deductions for recovery of loans
Deductions for recovery of loans granted under clause (fff) of sub-section (2) of section 7 shall
be subject to any rules made by the State Government regulating the extent to which such loans
may be granted and the rate of interest payable thereon.
3.2.12.Deductions for payments to co-operative societies and insurance schemes
Deductions under clause (j) and clause (k) of sub-section (2) of section 7 shall be subject to such
conditions as the State Government may impose.
3.3.EMPLOYEES STATE INSURANCE ACT(ESI),1948
The Employee State Insurance Act, [ESIC] 1948, is a piece of social welfare legislation enacted
primarily with the object of providing certain benefits to employees in case of sickness,
maternity and employment injury and also to make provision for certain others matters incidental
thereto. The act strives to materialise these avowed objects through only to a limited extent. This

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act becomes a wider spectrum then factory act. In the sense that while the factory act concerns
with the health, safety, welfare, leave etc of the workers employed in the factory premises only.
But the benefits of this act extend to employees whether working inside the factory or
establishment or elsewhere or they are directly employed by the principal employee or through
an intermediate agency, if the employment is incidental or in connection with the factory or
establishment.
3.3.1.Applicability
The ESIC Act applies to non-seasonal, power using factories or manufacturing units employing
ten or more persons and non-power using establishments employing twenty or more persons.
Under the enabling provisions of the act, a factory or establishment, located in a geographical
area, notified for implementation of the scheme, falls in the purview of the act. The present
ceiling of Rs 21000 has been effective from 01 January, 2017 the appropriate government state
or central is empowered to extend the provision of the ESI Act to various classes of
establishment, industrial, commercial, agricultural or otherwise in nature. Under these enabling
provisions most of the state governments have extended the ESI act to certain specific classes of
establishments. Like shops, hotels, restaurants, cinemas, employing 20 or more persons. But no
industry has the right to opt out of the scheme.
3.3.2.Contribution and Benefit period
Workers, covered under the ESI Act, are required to pay contribution towards the scheme on a
monthly basis contribution period means a six-month time span from 1 April to 30 Sept. and 1
October to 31 March. Thus, in a financial year there are two contribution periods of six months
duration. Cash benefits under the scheme are generally linked with contribution paid. The benefit
period starts their months after the closure of a contribution period,
Table 1: Contribution and benefit periods under ESI Act
CONTRIBUTION PERIOD BENEFIT PERIOD
1 April to 30 September 1 January to 30 June
1 October to 31 March 1 July to 31 December

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3.3.3.Social Security Benefits
1. Medical benefit
Full medical facilities for self and dependants are admissible from day one of entering insurable
employment. Whereas, the primary, outpatient, in patient and specialist services are provided
through a network of panel clinics, ESI dispensaries and hospitals, super specialty services are
provided through a large number of advanced empanelled medical institutions on referral basis.
Eligibility to medical benefit
• From day one of entering insurable employment for self and dependants such as spouse,
parents and children own or adopted.
• For self and spouse on superannuation subject to having completed five years in insurable
employment on superannuation or in case of having suffered permanent physical disablement
during the course of insurable employment.
• The rate of contribution for superannuated/ disabled is Rs 1,220 per annum payable in lump
sum at the local office for availing full medical care for self and spouse.
2. Sickness benefit
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 insurable medical officer/ practitioner.
• The benefit becomes admissible only after an insured has paid contribution for at least 78
days in a contribution period of 6 months.
• Sickness benefit is payable for a maximum of 91 days in two consecutive contribution
period[one year]
• Payment is to be made by the local office within 7 days of certificate of sickness at a standard
rate, which is not less than 50% of the wages.
3. Extended sickness benefit
Extended sickness benefit is payable to insured persons for the period of certified sickness in
case of specified 34 long-term diseases that need prolonged treatment and absence from work on
medical advice.
• For entitlement to this benefit an insured person should have been in insurable employment
for at least 2 years. He/ she should also have paid contribution for a minimum of 156 days in
the preceding 4 contribution periods or say 2 years.
• ESI is payable for a maximum period of 2 years on the basis of proper medical certification

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and authentication by the designated authority.
• Amount payable in cash as extended sickness benefit is payable within 7 days following the
submission of complete claim papers at the local office concerned.
4. Enhanced sickness benefit
This cash benefit is payable to insured persons in the productive age group for under going
sterilization operation, viz., vasectomy/ tubectomy.
• The contribution is the same as for the normal sickness benefit.
• Enhanced sickness benefit is payable to the IP’s for 14 days for tubectomy and for seven
days in case of vasectomy.
• The amount payable is double the standard sickness benefit rate that is, equal to equal to full
wages.
5. Maternity benefit
Maternity benefit is payable to insured women in case of confinement or miscarriage or sickness
related thereto.
• For claiming this an insured woman should have paid for at least 70 days in 2 consecutive
contribution periods i.e. 1 year.
• The benefit is normally payable for 12 weeks, which can be further extended up to 16 weeks on
medical grounds.
• The rate of payment of the benefit is equal to wage or double the standard sickness benefit rate.
• The benefit is payable within 14 days of duly authenticated claim papers.
6. Disablement benefit
Disablement benefit is payable to insured employees suffering from physical disablement due to
employment injury or occupation disease.
• An insured person should be an employee on the date of the accident. Temporary disablement
benefit at 70% of the wages is payable till temporary disablement lasts and is duly certified by
authorized insurance medical officer.
• In case of permanent disablement, the cash benefit is payable is payable for life. Amount
payable is worked out on the basis of earning capacity determined by a medical board.
• Disablement benefit is payable within one month of submission of the complete claim
papers.

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7. Dependent benefits
Dependent benefit [family pension] is payable to dependants of a deceased insured person where
death occurs due to employment or occupational disease.
• A widow can receive this benefit on a monthly basis for life or till remarriage.
• A son or daughter can receive this benefit till 18 years of age.
• Other dependants like parents including a widowed mother can also receive the benefit under
certain condition.
• The rate of payment is about 70% of the wages shareable among dependants in a fixed ratio.
• The first installment is payable within a maximum of 3 months following the death of an
insured person and thereafter, on a regular monthly basis.
8. Other benefits
a. Funeral expenses
On the death of an insured person subject to a maximum of a Rs. 2,500 payable at the local
office.
b. Vocational rehabilitation
In case of disabled insured persons under 45 years of age with 40% or more disablement.
c. Free supply of physical aids and appliances such as crutches, wheelchairs, spectacles and
other such physical aids.
d. Preventive health care services such as immunization, family welfare services, HIV/AIDS
detection, treatment etc.
e. Medical bonus Rs250 is paid to an insured woman or in respect of the wife of an insured
person in case she does not avail hospital facilities of the scheme for child delivery.
Table 2: Penalties under ESI act
SECTION REASON PENALITY
84  Whoever, for the purpose of causing
any increase in payment
 Whoever, for the purpose of causing
any payment or benefit to be made
where no payment
 Whoever, for the purpose of avoiding
punishable with imprisonment for
a term which may extend to 6
months, or with fine not exceeding
2000/- rupees, or with both.

25. 25
any payment to be made by himself
under this Act
 Whoever, enabling any other person
to avoid any such payment,
knowingly makes
 Whoever, made any false statement
or false representation,
PROVIDED that where an insured
person is convicted under this
Section, he shall not be entitled for
any cash benefit under this Act for
such period as may be prescribed
by the Central Government.
85 fails to pay any contribution which under this
Act he is liable to pay
imprisonment for a term which
may extend to 3 years
in case of failure to pay the employee's
contribution which has been deducted by
him from the employee's wages
fine of 10,000/- rupees and
imprisonment which shall not be
less than six months
 fails or refuses to submit any return
required by the regulations, or makes
a false return,
 deducts or attempts to deduct from
the wages of an employee the whole
or any part of the employer's
contribution,
Imprisonment for a term which
may extend to one year or with
fine which may extend to 4000/-
rupees, or with both.
85A Repeated failure by the employer to pay any
contribution which under this Act he is liable
to pay,
Imprisonment for a term which
may extend to 5 years but which
shall not be less than 2 years and
shall also be liable to fine of
25,000/- thousand rupees.

26. 26
Table 3:Forms under ESI Act
FORMS FOR EMPLOYER
FORM NO SUBJECT
Form 1 Employer registration form .
Form 1(A) Annual information of factory/Establish
submission form.
Form 3 Return of declaration form
Form 5 Return of contribution
Form 5(A) Statement of advance payment of contribution
Form 10 Absent verification
Form 11 Accident Register
Form 12 Accident Report Form
Form 37 Certificate of reemployment/continuing
employment
FORMS FOR EMPLOYEE
Form 1 Declaration form of nominee
Form 2 Addition/Deletion in a family declaration form
Form 9 Claim form for sickness /TDB/Maternity
Form 14 Claim form for permanent disablement
Form 15 Claim form for dependent benefits
Form 16 Claim form for periodical dependent benefits
Form 19 Claim for maternity benefits
3.4.EMPLOYEES PROVIDENT FUND AND MISCELLANEOUS PROVISIONS
ACT,1952
3.4.1.Applicability
This Act may be called the Employees' Provident Funds and Miscellaneous Provisions Act,
1952.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) Subject to the provisions contained in section 16, it applies

27. 27
(a) to every establishment which is a factory engaged in any industry specified in Schedule I and
in which [twenty] or more persons are employed, and
(b) to any other establishment employing [twenty] or more persons or class of such
establishments which the Central Government may, by notification in the Official Gazette,
specify in this behalf:
(4) Notwithstanding anything contained in sub-section (3) of this section or sub-section (1) of
section 16, where it appears to the Central Provident Fund Commissioner, whether on an
application made to him in this behalf or otherwise, that the employer and the majority of
employees in relation to any establishment have agreed that the provisions of this Act should be
made applicable to the establishment, he may, by notification in the Official Gazette, apply the
provisions of this Act to that establishment on and from the date of such agreement or from any
subsequent date specified in such agreement.
Table 4: Contribution details
SCHEMES EMPLOYEE EMPLOYER
AC 1/EPF 12% 3.67%
AC 2/PF admin. charges - 1.1%
AC 10/ Employee pension scheme - 8.33%
AC 21/EDLI - 0.50%
AC 22/EDLI Admin. charges - 0.01%
3.4.2.Employees Provident Funds Scheme
(1)The Central Government may, by notification in the Official Gazette, frame a Scheme to be
called the Employees' Provident Funds Scheme for the establishment of provident funds under
this Act for employees or for any class of employees and specify the [establishments] or class of
[establishments] to which the said Scheme shall apply and there shall be established, as soon as
may be after the framing of the Scheme, a Fund in accordance with the provisions of this Act and
the Scheme.

28. 28
(1A) The Fund shall vest in, and be administered by, the Central Board constituted under section
5A.
(1B) Subject to the provisions of this Act, a Scheme framed under sub-section (1) may provide
for all or any of the matters specified in Sch. II.
(2) A Scheme framed under sub-section (1) may provide that any of its provisions shall take
effect either prospectively or retrospectively on such date as may be specified in this behalf in
the Scheme.
3.4.3.Contributions and matters which may be provided for in the Scheme
The contribution which shall be paid by the employer to the Fund shall be [twelve per cent] of
the basic wages, [dearness allowance and retaining allowance (if any)], for the time being
payable to each of the employees [(whether employed by him directly or by or through a
contractor)] and the employees' contribution shall be equal to the contribution payable by the
employer in respect of him and may, [if any employee so desires be an amount not exceeding
[twelve per cent] of his basic wages, dearness allowance and retaining allowance (if any), subject
to the condition that the employer shall not be under an obligation to pay any contribution over
and above his contribution payable under the section 6.
3.4.4.Employees Pension Scheme
(1) The Central Government may, by notification in the Official Gazette, frame a scheme to be
called the Employees' Pension Scheme for the purpose of providing for:
(a) superannuation pension, retiring pension or permanent total disablement pension to the
employees of any establishment or class of establishments to which this Act applies; and
(b) widow or widower's pension, children pension or orphan pension payable to the beneficiaries
of such employees.
(2) Notwithstanding anything contained in section 6, there shall be established, as soon as may
be after framing of the Pension Scheme, a Pension Fund into which there shall be paid, from
time to time, in respect of every employee who is a member of the Pension Scheme:

29. 29
(a) such sums from the employer's contribution under section 6, not exceeding eight and one-
third per cent of the basic wages, dearness allowance and retaining allowance, if any, of the
concerned employees, as may be specified in the Pension Scheme;
(b) such sums as are payable by the employers of exempted establishments under sub-section (6)
of section 17;
(c) the net assets of the Employees' Family Pension Fund as on the date of the establishment of
the Pension Fund;
(d) such sums as the Central Government may, after due appropriation by Parliament by law in
this behalf, specify.
(3) On the establishment of the Pension Fund, the Family Pension Scheme (hereinafter referred
to as the ceased scheme) shall cease to operate and all assets of the ceased scheme shall vest in
and shall stand transferred to, and all liabilities under the ceased scheme shall be enforceable
against, the Pension Fund and the beneficiaries under the ceased scheme shall be entitled to draw
the benefits, not less than the benefits, they were entitled to under the ceased scheme, from the
Pension Fund.
(4) The Pension Fund shall vest in and be administered by the Central Board in such manner as
may be specified in the Pension Scheme.
(5) Subject to the provisions of this Act, the Pension Scheme may provide for all or any of the
matters specified in Schedule III.
(6) The Pension Scheme may provide that all or any of its provisions shall take effect either
prospectively or retrospectively on such date as may be specified in that behalf in that Scheme.
(7) A Pension Scheme, framed under sub-section (1) shall be laid, as soon as may be after it is
made, before each House of Parliament, while it is in session, for a total period of thirty days
which may be comprised in one session or in two or more successive sessions, and if, before the
expiry of the session immediately following the session or the successive sessions aforesaid, both
Houses agree in making any modification in the scheme or both Houses agree that the scheme
should not be made, the scheme shall thereafter have effect only in such modified form or be of

30. 30
no effect, as the case may be; so, however, that any such modification or annulment shall be
without prejudice to the validity of anything previously done under that scheme.
3.4.5.Employees' Deposit Linked insurance Scheme
(1) The Central Government may, by notification in the Official Gazette, frame a Scheme to be
called the Employees' Deposit-linked Insurance Scheme for the purpose of providing life
insurance benefits to the employees of any establishment or class of establishments to which this
Act applies.
(2) There shall be established, as soon as may be after the framing of the Insurance Scheme, a
Deposit-linked Insurance Fund into which shall be paid by the employer from time to time in
respect of every such employee in relation to whom he is the employer, such amount, not being
more than one per cent of the aggregate of the basic wages, dearness allowance and retaining
allowance (if any) for the time being payable in relation to such employee as the Central
Government may, by notification in the Official Gazette, specify.
3.4.6.Penalties
(1) Whoever, for the purpose of avoiding any payment to be made by himself under this Act or
of enabling any other person to avoid such payment knowingly makes or causes to be made any
false statement or false representation shall be punishable with imprisonment for a term which
may extend to one year, or with fine of five thousand rupees, or with both.
(2)The Pension Scheme or the Insurance Scheme may provide that any person who contravenes,
or makes default in complying with any of the provisions thereof shall be punishable with
imprisonment for a term which may extend to [one year, or with fine which may extend to four
thousand rupees, or with both.
Table 5: Forms under PF and Miscellaneous provisions Act
FORM NO SUBJECT
Form 2 Declaration form for new employee
Form 3A Annual return form before 30th April annually
Form 5 Return of employees joining before 15th of every month
Form 9 Issue of individual PF account number in a month of joining

31. 31
Form 10 Return of employee leave before 15th of every month
Form 12A/12 Monthly return form
Form 13 Transfer of PF fund
Form 19/10C/10D Final settlement of pension/PF/After 10 years
Form 31 Advance for various purposes
3.5.THE PAYMENT OF BONUS ACT,1965
3.5.1.Applicability
It extends to the whole of India. Save as otherwise provided in this Act, it shall apply to,-every
factory; and every other establishment in which twenty or more persons are employed on any
day during an accounting year.
That the appropriate government may, after giving not less than two months' notice of its
intention so to do, by notification in the Official Gazette, apply the provisions of this Act with
effect from such accounting year as may be specified in the notification, to any establishment or
class of establishments [including an establishment being a factory within the meaning of sub-
clause (ii) of clause (m) of section 2 of the Factories Act, 1948 (63 of 1948)] employing such
number of persons less than twenty as may be specified in the notification; so, however, that the
number of persons so specified shall in no case be less than ten. Save as otherwise provided in
this Act, the provisions of this Act shall, in relation to a factory or other establishment to which
this Act applies, have effect in respect of the accounting year commencing on any day in the year
1964 and in respect of every subsequent accounting year.
3.5.2. Eligibility for bonus
Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in
accordance with the provisions of this Act, provided he has worked in the establishment for not
less than thirty working days in that year.
3.5.3.Disqualification for bonus
Notwithstanding anything contained in this Act, an employee shall be disqualified from
receiving bonus under this Act, if he is dismissed from service for,-

32. 32
(a) fraud; or
(b) riotous or violent behavior while on the premises of the establishment; or
(c) theft, misappropriation or sabotage of any property of the establishment.
3.5.4.Payment of minimum bonus
Subject to the other provisions of this Act, every employer shall be bound to pay to every
employee in respect of the accounting year commencing on any day in the year 1979 and in
respect of every subsequent accounting year, a minimum bonus which shall be 8.33 per cent of
the salary or wages earned by the employee during the accounting year or one hundred rupees,
whichever is higher, whether or not the employer has any allocable surplus in the accounting
year.
3.5.5.Payment of maximum bonus
(1) Where in respect of any accounting year referred to in section 10, the allocable surplus
exceeds the amount of minimum bonus payable to the employees under that section, the
employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of
that accounting year bonus which shall be an amount in proportion to the salary or wages earned
by the employee during the accounting year subject to a maximum of twenty per cent of such
salary or wage.
(2) In computing the allocable surplus under this section, the amount set on or the amount set off
under the provisions of section 15 shall be taken into account in accordance with the provisions
of that section.
3.5.6.Calculation of bonus with respect to certain employees
Where the salary or wages of an employee exceeds two thousand and five hundred rupees , the
bonus payable to such employee under section 10 or, as the case may be, under section 11, shall
be calculated as if his salary or wages were [three thousand and five hundred rupees] .

33. 33
3.5.7.Proportionate deduction in bonus in certain cases
Where an employee has not worked for all the working days in an accounting year, the minimum
bonus of one hundred rupees or, as the case may be, if such bonus is higher than 8.33 per cent of
his salary or wage of the days he has worked in that accounting year, shall be proportionately
reduced.
3.5.8.Computation of number of working days
For the purposes of section 13, an employee shall be deemed to have worked in an establishment
in any accounting year also on the days on which,-
(a) He has been laid off under an agreement or as permitted by standing orders under the
Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under the Industrial
Disputes Act, 1947, (14 of 1947), or under any other law applicable to the establishment;
(b) He has been on leave with salary or wages;
(c) He has been absent due to temporary disablement caused by accident arising out of and in the
course of his employment, and
(d) The employee has been on maternity leave with salary or wages, during the accounting year.
3.5.9.Time-limit for payment of bonus
All amounts payable to an employee by way of bonus under this Act shall be paid in cash by his
employer,-
(a) where there is a dispute regarding payment of bonus pending before any authority under
section 22, within a month from the date on which the award becomes enforceable or the
settlement comes into operation, in respect of such dispute;
(b) in any other case, within a period of eight months from the close of the accounting year.
3.5.10.Penalty
If any person,-

34. 34
(a) contravenes any of the provisions of this Act or any rule made there under, or
(b) to whom a direction is given or a requisition is made under this Act fails to comply with the
direction or requisition, he shall be punishable with imprisonment for a term which may extend
to six months, or with fine which may extend to one thousand rupees, or with both.
3.6.THE PAYMENT OF GRATUITY ACT,1972
3.6.1.Applicability
It shall apply to-
(a) every factory, mine, oilfield, plantation, port and railway company;
(b) every shop or establishment within the meaning of any law for the time being in force in
relation to shops and establishments in a State, in which ten or more persons are employed, or
were employed, on any day of the preceding twelve months;
(c) such other establishments or class of establishments, in which ten or more employees are
employed, or were employed, on any day of the preceding twelve months, as the Central
Government may, by notification, specify in this behalf.
3.6.2.Controlling authority
The appropriate Government may, by notification, appoint any officer to be a controlling
authority, who shall be responsible for the administration of this Act and different controlling
authorities may be appointed for different areas.
3.6.3.Payment of gratuity
(1) Gratuity shall be payable to an employee on the termination of his employment after he has
rendered continuous service for not less than five years,-
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease;

35. 35
Provided that the completion of continuous service of five years shall not be necessary where the
termination of the employment of any employee is due to death or disablement :
Provided further that in the case of death of the employee, gratuity payable to him shall be paid
to his nominee or, if no nomination has been made, to the heirs.
(2) For every completed year of service or part thereof in excess of six months, the employer
shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last
drawn by the employee concerned :
Provided that in the case of piece-rated employee, daily wages shall be computed on the average
of the total wages received by him for a period of three months immediately preceding the
termination of his employment, and, for this purpose, the wages paid for any overtime work shall
not be taken into account.
Provided further that in the case of an employee employed in a seasonal establishment, the
employer shall pay the gratuity at the rate of seven days' wages for each season.
(3) The amount of gratuity payable to an employee shall not exceed twenty months wages.
(4) For the purpose of computing the gratuity payable to an employee who is employed, after his
disablement, on reduced wages, his wages for the period preceding his disablement shall be
taken to be the wages received by him during that period, and his wages for the period
subsequent to his disablement shall be taken to be the wages as so reduced.
(5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity
under any award or agreement or contract with the employer.
3.6.4.Determination of the amount of gratuity
(1) A person who is eligible for payment of gratuity under this Act or any person authorized, in
writing, to act on his behalf shall send a written application to the employer, within such time
and in such form, as may be prescribed, for payment of such gratuity.
(2) As soon as gratuity becomes payable, the employer shall, whether an application referred to
in sub-section (1) has been made or not, determine the amount of gratuity and give notice in

36. 36
writing to the person to whom the gratuity is payable and also to the controlling authority
specifying the amount of gratuity so determined.
(3) The employee shall arrange to pay the amount of gratuity, within such time as may be
prescribed, to the person to whom the gratuity is payable.
(4) (a) If there is any dispute as to the amount of gratuity payable to an employee under this Act
or as the admissibility of any claim of, or in relation to, an employee for payment of gratuity, or
as to the person entitled to receive the gratuity, the employer shall deposit with the controlling
authority such amount as he admits to be payable by him as gratuity.
(b) The controlling authority shall, after due inquiry and after giving the parties to the dispute a
reasonable opportunity of being heard, determine the amount of gratuity payable to an employee,
and, if as a result of such inquiry any amount in excess of the amount deposited by the employer
is found to be payable, the controlling authority shall direct the employer to pay such amount as
is in excess of the amount deposited by him.
(c) The controlling authority shall pay the amount deposited including the excess amount, if any,
deposited by the employer, to the person entitled thereto.
(d) as soon as may be after a deposit is made under clause (a), the controlling authority shall pay
the amount of the deposit-
(i) to the applicant where he is the employee; or
(ii) where the applicant is not the employee, to the nominee or heir of the employee if the
controlling authority is satisfied that there is no dispute as to the right of the applicant to receive
the amount of gratuity.
(5) For the purpose of conducting an inquiry under sub-section (4), the controlling authority shall
have the same powers as are vested in a court, while trying a suit, under the Code of Civil
Procedure, 1908, (5 of 1908) in respect of the following matters, namely :-
(a) enforcing the attendance of any person or examining him on oath;
(b) requiring the discovery and production of documents;

37. 37
(c) receiving evidence on affidavits;
(d) issuing commission for the examination of witnesses.
(6) Any inquiry under this section shall be a judicial proceeding within the meaning of sections
193 and 228, and for the purpose of section 196, of the Indian Penal Code (45 of 1860).
(7) Any person aggrieved by an order under sub-section (4) may, within sixty days from the date
of the receipt of the order, prefer an appeal to the appropriate Government or such other
authority as may be specified by the appropriate Government in this behalf.
(8) The appropriate Government or the appellate authority, as the case may be, may, after giving
the parties to the appeal a reasonable opportunity of being heard, confirm, modify or reverse the
decision of the controlling authority.
3.6.5.Calculation of gratuity amount
Monthly Salary
Gratuity = Last drawn wages × 26/15 × Completed years of Service (including a part of year in
excess of six months)
Piece RatedEmployee
Gratuity = Last drawn wages × 26/15 × Completed years of Service (including a part of year in
excess of six months)
Employee of a Seasonal Establishment.
Employee of seasonal establishment shall be paid gratuity at the rate of 7 days wages for each
season.
3.6.6.Recovery of gratuity
If the amount of gratuity payable under this Act is not paid by the employer, within the
prescribed time, to the person entitled thereto, the controlling authority shall, on an application
made to it in this behalf by the aggrieved person, issue a certificate for that amount to the
Collector, who shall recover the same, together with compound interest thereon at the rate of
nine per cent per annum, from the date of expiry of the prescribed time, as arrears of land
revenue and pay the same to the person entitled thereto.

38. 38
3.6.7.Penalties
(1) Whoever, for the purpose of avoiding any payment to be made by himself under this Act or
enabling any other person to avoid such payment, knowingly makes or causes to be made any
false statement or false representation shall be punishable with imprisonment for a term which
may extend to six months, or with fine which may extend to one thousand rupees, or with both.
(2) An employer who contravenes, or makes default in complying with, any of the provisions of
this Act or any rule or order made there under shall be punishable with imprisonment for a term
which may extend to one year, or with fine which may extend to one thousand rupees, or with
both.

39. 39
CHAPTER -4:RESEARCH METHODOLOGY
4.1. IDENTIFICATION OF PROBLEM
The company follows all the social security legislations for the welfare of the employees and
according to the annual report(2014-2015) of the company there had been no strikes, lockouts
and other offenses in the organization since 1998. The labourers were unaware about the certain
provisions of the statutory compliances. Thus the project was carried out in this light to
determine the awareness levels of employees and study the provisions under various acts.
4.2.OBJECTIVES
 To study the Statutory compliances and various provisions covered under the acts.
 To find the level of awareness about the Statutory compliances among the employees of
the company.
 To examine the correlation of income levels and the awareness frequency of employees.
 To suggest suitable measures for improving the awareness among the employees.
4.3.DATA SOURCE AND DATA COLLECTION
Primary Data Information through questionnaire containing
20 questions was collected from 80 employees.
The questions were regarding the provisions
under various statutory compliances and the
benefits that the employees can avail.
Respondents were to rate these factors on a 3
rating scale (1-3).
Secondary Data  Through official Website of the
company.(www.ufl.co.in)
 Company annual report.(2015-2016)
 Journals.( International journal of
advanced research in management

40. 40
and social sciences :Comprehending
the relationship between labour laws
and development in the Indian context ,
Indian Journal of Labour
Economics: Some issues in working of
Social Security Laws in India,
International journal on scientific
research: Effects of the min. wage on
employment dynamics., International
journal of scientific research: perception
of insured persons on Employees’ State
Insurance schemes.)
4.4.SAMPLE DESIGN
This study is concerned with the statutory compliances and the awareness of social security
legislations among the employees at Ultimate Flexipak Ltd .The quota sampling method was
used to gather the data from 80 employees and selected on the basis of following two
conditions:
 The respondent should be an employee of Bari Brahmana manufacturing plant.
 The respondents should have variation in their income levels.
4.5. RELEVANCE OF THE STUDY
 The study was carried out with the insight to understand the various provisions under the
statutory compliances and the benefits to the employees.
 The study attempts to identify the awareness levels of employees towards the social
security legislations.
 This study would help the management to take necessary steps to increase the awareness
among the employees and acquaint them with the amendments under the acts.

41. 41
4.6. SCOPE OF THE STUDY
 There are so many statutory compliances in HR but this study is limited to only five
social security legislations i.e. The payment of wages act,1936, Employee state insurance
act,1948, The Employees Provident Fund & Miscellaneous Provisions Act, 1952, The
Payment Of Bonus Act, 1965, The Payment Of Gratuity Act, 1972.
 The scope of this study is limited only to 80 employees of the Bari Brahmana plant.
4.5.LIMITATION OF THE STUDY
 A study on statutory compliances in Ultimate Flexipak Ltd., Bari Brahmana, Jammu is
confined to only 80 employees of the organization. Hence the results of the study may not
be generalized and not universally applicable.
 There is a possibility that the employees might fill wrong information in the
questionnaire.
 Not every employee will provide adequate total salary or wages they get per month in the
questionnaire for the analysis purpose.
 There had been less access to the information available in the company premises.

42. 42
CHAPTER -5:DATA ANALYSIS AND INTERPRETATION
Data analysis has been done through tables in the excel and representation of data has been done
through graphs sheets for easy understanding. The responses of the employees are represented by
graphs as below.
1. I am aware that up to 21,000 is the eligibility under ESI act.
INTERPRETATION
Majority(80 employees) of employees were aware about the eligibility criteria deductions under
the employees state insurance act. The employees earning upto Rs.21000/- were given salaries
after the ESI deductions are made monthly .so they are well versed about the deduction criteria
and they are informed about the amendments in the act by the HR department.
0
10
20
30
40
50
60
70
80
90
Unaware Neither aware nor
unaware
Aware
No.ofemployees
Graph 1: Eligibility distribution under ESI Act

43. 43
2. I am aware that the contribution of employer is 4.75%.
INTERPRETATION
Majority(53 employees) of the employees were aware about the contribution of the employer
towards the ESI benefits. But the labourers were aware about their contribution only as it was
mentioned in their pay slips.
3. The company has to submit the ESI amount before 21st of every month.
INTERPRETATION
Majority(35employees) of the employees were unaware about the period of ESI submissions by
the company to the ESIC. The employees at UFL are least bothered about the submission clauses
under the ESI Act .The company should notify these provisions on the notice board.
0
10
20
30
40
50
60
Unaware Neither aware nor
unaware
Aware
No.ofemployees
Graph 2:Contribution awareness distribution under ESI act
0
10
20
30
40
Unaware Neither aware nor
unaware
Aware
No.ofemployees
Graph 3: Contribution submission awareness distribution under ESI Act

44. 44
4. Accident report form has been changed to form12.
INTERPRETATION
Majority(55 employees) of employees were unaware about the amendments under the ESI Act
i.e. the accident form has been changed under the amendment of act. There is less awareness
about the latest amendment under the act. They consider these amendments to be important for
the consideration of HR department.
5. I am aware that PF is also known as EPF.
INTERPRETATION
Majority(50 employees) of employees were aware about the fact that Provident fund is also
known as Employees provident fund .But employees belonging to the income class of Rs. 5000-
Rs.20000/- were unaware about the fact and they never bothered about what was written on their
pay slips.
0
10
20
30
40
50
60
Unaware Neither aware nor
unaware
Aware
No.ofemployees
Graph 4: Distribution of awareness in the amendments
0
10
20
30
40
50
60
Unaware Neither aware nor
unaware
Aware
No.ofemployees
Graph 5: Employees Provident fund distribution

45. 45
6.I am aware that PF is deducted from basic pay.
INTERPRETATION
Majority(67 employees) of employees were aware about the PF deductions from basic pay. The
employees were aware about all the deductions under the act.
7. There is equal contribution of 12% each from employer and employee.
INTERPRETATION
Majority(50 employees) of employees were aware about the contribution towards the PF
account. The employer has to pay administrative charges towards contribution of PF account for
the maintenance of employees record.
0
10
20
30
40
50
60
70
80
Unaware Neither aware nor
unaware
Aware
No.ofemployees
Graph 6:EPF deduction distribution
0
10
20
30
40
50
60
Unaware Neither aware nor
unaware
Aware
Graph 7: Contribution distribution under EPF Act

46. 46
8. In J&K employers have to pay more administrative charges under PF act,1952.
INTERPRETATION
Majority(20 employees) of the employees were aware that the employer has to pay more
administrative charges for the maintenance of records in J&K. This clause is applicable to the
employers of J&K only. The employees are least bothered about the employees contribution
towards their welfare.
9. Gratuity is paid after five years or 240 days annually working in an organization.
INTERPRETATION
Majority(80 employees) of employees were aware about the duration of payment of gratuity. The
gratuity is paid after the completion of 240 days of working annually .The notice board outside
the HR department clearly defines the basic provisions under the act.
0
10
20
30
40
50
60
Unaware Neither aware nor
unaware
Aware
No.ofemployees
Graph8: Distribution of administrative deductions under PF Act
0
20
40
60
80
100
Unaware Neither aware nor
unaware
Aware
No.ofemployees
Graph 9: Awareness distribution of payment of gratuity act

47. 47
10. Upto 10 lacs gratuity has been exempted from income tax.
INTERPRETATION
Majority(55 employees) of employees were unaware about the income tax deductions from the
amount of gratuity paid. Since gratuity is paid after 5 years the employees are least bothered
about the clauses under the act and few employees stated that they were not informed about this
clause.
11. Gratuity is paid even before 5 years in certain cases.
INTERPRETATION
Majority (55 employees) of employees were unaware about the payment of gratuity before 5
years in case of permanent disablement and death because all the employees except the HR
department had never read the acts under the statutory compliances and there provisions.
0
10
20
30
40
50
60
Unaware Neither aware nor
unaware
Aware
No.ofemployees
Graph 10: Gratuity exemption distribution
0
10
20
30
40
50
60
1 2 3 4 5
No.ofemployees
Graph 11:Awareness towards Gratuity payment uner tht Act

48. 48
12. The principal employer is liable to pay gratuity to contractual employee in case of default by
the contractor.
INTERPRETATION
Majority (35 employees) of employees were unaware about the payment of gratuity in case of
default by the contactor. The labourers working at UFL are paid by the contractors and they
generally discuss all the issues with the contractor rather than the principal employer .
13. Bonus is calculated on basic pay and DA.
INTERPRETATION
All of the employees(80 employees) who were surveyed through the questionnaire were aware
about the calculation of bonus on basic pay and DA because they get the bonus on the eve of
festivals every year .
0
5
10
15
20
25
30
35
40
Unaware Neither aware nor
unaware
Aware
No.ofemployees
Graph 12:Gratuity payment in case of contractual employees
0
20
40
60
80
100
Unaware Neither aware nor
unaware
Aware
No.ofemployees
Graph 13: Eligibility of bonus payment distribution

49. 49
14. An establishment has to pay bonus at the rate upto 20%.
INTERPRETATION
Majority(50 employees) of employees were aware about the maximum amount that is paid as
bonus to the employees. since the employees are told about the maximum bonus that is paid each
year and all the bonus details should be mentioned on the notice board.
15. Employer is entitled to pay bonus to employees receiving basic pay up to Rs.3500.
INTERPRETATION
Majority(60 employees) of employees were aware about the minimum eligibility for payment of
wages. Since there is no employee at UFL who is earning below Rs.5000/- and they are paid
bonus every year. so they are aware about the minimum bonus clause.
0
20
40
60
No.ofemployees
Graph 14: Awareness about rate at which bonus is paid
0
10
20
30
40
50
60
70
Unaware Neither aware nor
unaware
Aware
No.ofemployees
Graph 15: Minimun eligibility for payment of bonus

50. 50
16. Bonus details should be submitted before 15 Nov. annually.
INTERPRETATION
Majority(40 employees) of employees were neither aware nor unaware about the submission date
of bonus to the department of labour because most of the employees were satisfied with the
bonus paid to them.
17. In J&K Rs.5250/- per month min wages are given to semiskilled labourers.
INTERPRETATION
Majority(58 employees) of employees were aware about the payment of minimum wages in J&K
i.e. Rs.175 per day.
0
10
20
30
40
50
Unaware Neither aware nor
unaware
Aware
No.ofemployees
Graph 16: Submission of bonus details awareness distribution
0
10
20
30
40
50
60
70
Unaware Neither aware nor
unaware
Aware
No.ofemployees
Graph 17: Awareness of Minimum wages payment

51. 51
18. Overtime wages are not considered under the payment of wages act.
INTERPRETATION
Majority (55 employees) of employees were unaware about the fact that overtime wages are not
considered under the payment of wages act. since all the employees are paid total wages
including the overtime wages. The record of overtime wages are maintained separately and
employees generally don't have any concern regarding the records.
19. Wages shall be paid before the 7th day of month in an establishment employing less than
1000 workers.
INTERPRETATION
Majority(58 employees) of employees were aware that the organization employing less than
1000 workers should pay wages before 7th day of month as they were paid on the 7th day of
each month.
0
10
20
30
40
50
60
Unaware Neither aware nor
unaware
Aware
No.ofemployees
Graph18: Overtime wages payment distribution
0
10
20
30
40
50
60
70
Unaware Neither aware nor
unaware
Aware
No.ofemployees
Graph19: Wage payment period distribution

52. 52
20. Deductions of wages are given under section 7-13 in the payment of wages act.
INTERPRETATION
Majority(60 employees) of employees were unaware about the clauses of the payment of wages
act as they were of the thought that the HR department is well versed with these acts.
Table 6: Mean of the social security legislations studied
S.NO SOCIAL SECURITY LEGISLATIONS MEAN
1 ESI Act 2.16
2 PF Act 2.62
3 The payment of Gratuity Act 1.25
4 The payment of Bonus Act 2.50
5. The payment of wages Act 1.83
Measurement of mean awareness level towards statutory compliances
No. of total respondents= 80
Average Mean= ∑(No. of respondents opting the grade)/Total no. of Respondents
INTERPRETATION
Majority of the employees were aware about the various provisions under the Provident fund and
miscellaneous provisions act.(Mean-2.62) because the benefits can be availed after retirement
0
10
20
30
40
50
60
70
Unaware Neither aware nor
unaware
Aware
No.ofemployees
Graph 20: Deduction of wages awareness distribution

53. 53
and the employees are keen about the deductions that are made under this social security
legislation to secure their life. The awareness towards payment of bonus act(Mean-2.50) was
followed by the PF act. The employees were paid bonus on the eve of festivals and the surplus
was distributed as bonus to increase the motivation of employees. The awareness towards the
employees state insurance act was also observed through the mean value of 2.16. The mean
awareness value for the payment of wages act is 1.83. The employees were less aware about the
provisions under the payment of gratuity act(Mean-1.25).This may be due to the fact that the
employees who filled the questionnaire had worked for less than 5 years and the amount of
gratuity is paid after 5 years. so employees were least bothered about these provisions.
Table 7 : Income distribution of respondents and the awareness frequency
INCOME(per month) FREQUENCY PERCENTAGE
5000-20000 8 10.00
20000-35000 20 25.00
35000-50000 25 31.25
50000-65000 27 33.75
TOTAL 80 100
0
5
10
15
20
25
30
0 10000 20000 30000 40000 50000 60000 70000
NO.OFEMPLOYEES
INCOME
Graph:21 Income and awareness level correlation graph

54. 54
CALCULATION OF CORRELATION COEFFICIENT
X Y X⋅Y X⋅X Y⋅Y
12500 8 100000 156250000 64
27500 20 550000 756250000 400
42500 25 1062500 1806250000 625
57500 27 1552500 3306250000 729
r = 0.93
INTERPRETATION
The graph 21 clearly shows that the income and awareness level of employees have positive
correlation and the value of r =0.93 shows that they are strongly correlated. The variation in
income level leads to the variation in the awareness level of employees. As the income level of
employees increases the awareness towards the provisions under statutory compliances also
increases because the employees earnings primarily depends upon their educational
qualifications and experiences.

55. 55
CHAPTER -6:FINDINGS AND SUGGESTIONS
6.1.FINDINGS
6.1.1.Awareness of employees towards the provisions under Employees state insurance
Act,1948.
 Majority(80 employees) of employees were aware about the eligibility criteria deductions
under the employees state insurance act.(Refer graph.1)
 Majority(53 employees) of the employees were aware about the contribution of the
employer towards the ESI benefits.(Refer graph.2)
 Majority(35employees) of the employees were unaware about the period of ESI
submissions by the company to the ESIC (Refer graph.3)
 Majority(55 employees) of employees were unaware about the amendments under the
ESI Act i.e. the accident form has been changed under the amendment of act. (Refer
graph.4)
6.1.2.Awareness of employees towards the provisions under Employees provident fund and
miscellaneous provisions Act,1952.
 Majority(50 employees) of employees were aware about the fact that Provident fund is
also known as Employees provident fund.(Refer graph.5)
 Majority(67 employees) of employees were aware about the PF deductions from basic
pay. The employees were aware about all the deductions under the act.(Refer graph.6)
 Majority(50 employees) of employees were aware about the contribution towards the PF
account.(Refer graph.7)
 Majority(20 employees) of the employees were aware that the employer has to pay more
administrative charges for the maintenance of records in J&K.(Refer graph.8)

56. 56
6.1.3.Awareness of employees towards the provisions under the payment of gratuity
Act,1972.
 Majority(80 employees) of employees were aware about the duration of payment of
gratuity. The gratuity is paid after the completion of 240 days of working annually.(Refer
graph9)
 Majority(55 employees) of employees were unaware about the income tax deductions
from the amount of gratuity paid.(Refer graph 10)
 Majority (55 employees) of employees were unaware about the payment of gratuity
before 5 years in case of permanent disablement and death because all the employees
except the HR department had never read the acts under the statutory compliances and
there provisions.(Refer graph 11)
 Majority (35 employees) of employees were unaware about the payment of gratuity in
case of default by the contactor.(Refer graph 12)
6.1.4.Awareness of employees towards the provisions under the payment of bonus Act,1965.
 All of the employees(80 employees) who were surveyed through the questionnaire were
aware about the calculation of bonus on basic pay and DA because they get the bonus on
the eve of festivals every year .(Refer graph 13)
 Majority(50 employees) of employees were aware about the maximum amount that is
paid as bonus to the employees. (Refer graph 14)
 Majority(60 employees) of employees were aware about the minimum eligibility for
payment of wages. (Refer graph 15)
 Majority(40 employees) of employees were neither aware nor unaware about the
submission date of bonus to the department of labour because most of the employees
were satisfied with the bonus paid to them.(Refer graph 16)
6.1.5.Awareness of employees towards the provisions under the payment of wages Act,1936.
 Majority(58 employees) of employees were aware about the payment of minimum wages
in J&K i.e. Rs.175 per day.(Refer graph 17)

57. 57
 Majority (55 employees) of employees were unaware about the fact that overtime wages
are not considered under the payment of wages act..(Refer graph 18)
 Majority(58 employees) of employees were aware that the organization employing less
than 1000 workers should pay wages before 7th day of month as they were paid on the
7th day of each month.(Refer graph 19)
 Majority(60 employees) of employees were unaware about the clauses of the payment of
wages act as they were of the thought that the HR department is well versed with these
acts. (Refer graph 20)
6.1.6.Awareness of employees towards statutory compliances related to the income levels.
The graph 21 clearly shows that the income and awareness level of employees have positive
correlation and the value of r =0.93 shows that they are strongly correlated. The variation in
income level leads to the variation in the awareness level of employees. As the income level of
employees increases the awareness towards the provisions under statutory compliances also
increases because the employees earnings primarily depends upon their educational
qualifications and experiences.
6.2.SUGGESTIONS
Without full awareness about the statutory compliances, it will be difficult to provide employees full
benefits. Therefore, appropriate actions are required to generate awareness.
 Special lectures by experts on various provisions of the Social security Acts for the
benefit of workers can be organized by the HR department of Ultimate Flexipak ltd.
 The HR Officers should constantly interact with the workers to make them aware of the
specific provisions of the several Labor Acts and the contact points to get the benefits and
redress the grievances if any thereof.
 The management should dispatch various cases to the concerned body as soon as possible
to take necessary action for the welfare of the employees.
 The management should create a factory level fund to assist workers immediately.
 By making better the implementation machinery working at the factory level.

58. 58
 Coordination between factory level administrative machinery and state machinery should
be enhanced and take required action on workers complaints about implementation.
 Appropriate implementation of the Acts in the company premises should be checked
weekly without any prior intimation to the different departments.
 Modern communication media at the unit level can be used to generate the required level
of awareness among workers.
 The level of awareness can be enhanced by displaying abstract of the Act on the notice
boards or at the work place written in the language commonly understood by the workers.
 The awareness of Social Security Act can be increased by organizing worker’s training
programs and day long workshop.

59. 59
CHAPTER -7:CONCLUSION
The study was carried out to find out the awareness level of employees towards statutory
compliances at Ultimate Flexipak ltd. The awareness to various provisions under the Acts were
found out through the mean value of awareness . The employees awareness towards the
provident fund and miscellaneous provisions Act was highest with the mean value of 2.62
followed by the payment of bonus act( mean value=2.50). The mean value of awareness towards
the employees state insurance act is 2.16, the mean value calculated for the payment of wages act
is 1.83. The least awareness mean value computed was of the payment of gratuity act(1.25) as
the gratuity is paid after 5 years and some of the employees who were surveyed had never
availed the benefits under the act. The income and the awareness of employees towards statutory
compliances were positively correlated and coefficient of correlation computed came out to be
0.93.Efforts are to be made on the part of the management to enhance the level of awareness
among the employees. Some suggestions have been proposed to help the management increase
the level of awareness among the employees and adhere to the statutory compliances for the
welfare of workers.

60. 60
REFERENCES AND BIBLIOGRAPHY
REFERENCES
 Jafar, A.H., &Ghosh, A.J. (2013). Comprehending the relationship between labour laws
and development in the Indian context. International journal of management and social
sciences,Vol.3,Issue 5.
 Sharma, A.K. , &Singh, A.M.(2013). Awareness of social security legislations among
textile industrial workers:A study of Auro spinning mills. International journal of
advanced research in management and social sciences, Vol.2.
 Bhattacharjea , A. (2006). Labour market regulation and industrial performance in India:
a critical review of the empirical evidence. Indian Journal of Labour
Economics.,39(2),211- 239.
 Pillai, B.V.(2014). An assessment of awareness and satisfaction of employee state
insurance scheme in the service sector in Kerala. International journal of management
and social science research review,Vol.1, Issue 5.
 Ghosh, et al.(2007) .Conditions of work and status of social security: The case of workers
in display board work. Indian journal of labour economics, Vol.50(4), PP 847-852.
 Gindling, T. & Terrell K. (2007). The effects of multiple minimum wages throughout the
labour market: the case of Costa Rica. Labour Economics, 14(3) 485–511.
 Anandhi, K.(2014). The study assesses the ILO decent work agenda in the Global South:
impact on labour relations and conditions. Indian journal of labour economics, Vol.3.
 Johri, C.K. (2005).Social Security for workers in India. Encyclopaedia of Social Work in
India
 Meer,J.,& West, J.(2015). Effects of the min. wage on employment dynamics.
International journal on scientific research, Vol.1,Issue 2.
 Anandhi, K. , &Dr. Sivagnanasithi, T.(2014). perception of insured persons on
Employees’ State Insurance schemes. International journal of scientific research
,Vol.3,Issue 3.
 Rao, M.P.(2005). Social security administration in India- Study of Provident fund and
pension scheme in India. International journal of management and social sciences,Vol.1.

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 Muthu, G. (2014). A Study On The Performance Of The Employees State Insurance
Scheme (ESI) With Special Reference To Tuticorin District, Golden research thoughts ,
1-7.
 Nyman, J.A.(1999). The value of health insurance: the access motive. Journal of Health
Economics, 18, pp.141-152.
 Pires, R. (2008). Promoting sustainable compliance: styles of labour inspection and
compliance outcomes in Brazil. International Labour Review. 147(3), 199-229.
 Kumar, S.H.(2015). Labour Law Enforcement and the Rise of Temporary Contract
Workers: Empirical Evidence from India’s Organised Manufacturing Sector. European
journal of labour laws, Vol.50.
 Saini, D.S. (2005) .Some issues in working of Social Security Laws in India, Indian
Journal of Labour Economics, Vol. 48 (4), pp. 1029-1037.
 Sharma, A.K.(1997). Factors affecting satisfaction from employee's state insurance
corporation services provided at the dispensaries, Health and Population - Perspectives
and Issues.,20(1), pp. 38-47.
 Ginneken, W.N. (2007). Extending Social Security Coverage: Concept, Global Trends
and Policy Issues, International Social Security Review, Vol. 60 (2-3), p. 39-57.

62. 62
BIBLIOGRAPHY
 H.L. Kumar, compliance under labour laws,3rd edition , Universal publishing co. pvt.ltd.
 P.K. Padhi, Labour and industrial laws, 2nd edition, PHI publications.
 H.L.Kumar, Payment of wages act and rules, 4th edition , Universal publishing co.pvt.
ltd.
 S.D. Puri and Sandeep Puri, Labour laws for everyday-made easy, Snow white
publications.
 C.R.Kothari, Research Methodology: Methods and Techniques, Second Edition, UBS
Publishers Distributors.
 www.ilo.org
 www.Esic.in
 www.Epfindia.com
 www.labour.nic.in
 www.gratuity.org
 www.ufl.com

63. 63
ANNEXURES
ANNEXURE A QUESTIONNAIRE
NAME(Optional): INCOME:
1. 2. 3.
1. I am aware that up to 21,000 is the eligibility
under ESI act.
2. I am aware that the contribution of employer is
4.75%.
3. The company has to submit the ESI amount
before 21st of every month.
4. Accident report form has been changed to
form12.
5. I am aware that PF is also known as EPF.
6. I am aware that PF is deducted from basic pay.
7. There is equal contribution of 12% each from
employer and employee.
8. In J&K employers have to pay more
administrative charges under PF act,1952.
9. Gratuity is paid after five years or 240 days
annually working in an organization.
10. Upto 10 lacs gratuity has been exempted from
income tax .
11. Gratuity is paid even before 5 years in certain
cases.
12. The principal employer is liable to pay gratuity
to contractual employee in case of default by
the contractor.
13. Bonus is calculated on basic pay and DA.
14. An establishment has to pay bonus at the rate

64. 64
upto 20%.
15. Employer is entitled to pay bonus to
employees receiving basic pay up to Rs.3500.
16. Bonus details should be submitted before 15
Nov. annually.
17. In J&K Rs.5250/- per month min wages are
given to semiskilled labourers.
18. Overtime wages are not considered under the
payment of wages act.
19. Wages shall be paid before the 7th day of
month in an establishment employing less than
1000 workers.
20. Deductions of wages are given under section
7-13 in the payment of wages act.
RATING SCALE
1.Unaware
2. Neither aware nor unaware
3. Aware

65. 65