Prepared by,

T. Siva Kumar

Compiled from:
•Elements of Mercantile Law by N.D.Kapoor (2007),
•http://labour.nic.in/act/welcome.html
•Various postings in www.citehr.com
Law
 What is law?
 Law includes all the rules & principles which regulate our relations
with other individuals & with the state.

 Object of law?
 To establish socio-economic justice and remove the existing
imbalance in the socio-economic structure.

 Need for the knowledge of law?

 Ignorance of law is no excuse.
Mercantile/Business/Commercial Law
 What is it mean?
 It deals with contractual situations and the right & obligations
arising out of mercantile transactions between mercantile persons.

 Sources of Business Law?

 English Mercantile law
 Statute Law
 Judicial decisions or the system of precedents
 Customs & usages
 Workmen’s
Indian Contract Trade Unions Act, Partnership Act, Payment of Wages
Compensation
Act, 1872 1926 1932 Act, 1936
Act, 1923

Industrial
Employees’ State
Employment Industrial Minimum Wages
Factories Act, 1948 Insurance Act,
(Standing Orders) Disputes Act, 1947 Act, 1948
1948
Act, 1946

Employees’ PF &
Employment
Miscellaneous Company Act, Apprentices Act, Maternity Benefits
Exchanges Act,
Provisions Act, 1956 1961 Act, 1961
1959
1952

Equal
Payment of Bonus Contract Labour Payment of Professional Tax
Remuneration
Act, 1965 Act, 1970 Gratuity Act, 1972 Act, 1976
Act, 1976

Interstate Migrant Unorganized

Child Labour Act,
Workmen Act, workers social
1986
1979 security Act, 2008
The Indian Contract Act, 1872
 Object?
 Branch of law which determines the circumstances in which
promises made by the parties to a contract shall be legally
binding on them.

 Contract = Agreement + Enforceablility by law (Legal

obligation not a Social obligation)
 Agreement = Offer + Acceptance (In genuine consent)
Essentials of valid contract
1. Offer and acceptance - 2 parties – one party making the offer, other
party accepting the offer, terms of offer must be definite and the
acceptance must also be according to the mode prescribed and
must be communicated to the offeror.

2. Intention to create legal relationship

3. Lawful consideration - something in return

4. Capacity of parties - competent, major, sound mind, not disqualified

from contracting by any law
Essentials of valid contract
5. Free and genuine consent – same mind on all the material terms of
the contract

6. Lawful object – legal, moral, not opposed to public policy

7. Agreement not declared is void

8. Certainty and possibility of performance – not vague or indefinite

9. Legal formalities – contract should be in writing

Workmen’s Compensation Act, 1923
 First step towards social security of workmen
 The theory behind this act is that “the cost of product should
bear the blood of the workmen”

 Object?
 To provide for the payment of compensation by certain classes
of employers to their workmen for injury by accident.

 Note: Workmen who are covered under ESI Act, 1948 are not entitled to
compensation under this Act as disablement and dependants’ benefit is
available to workmen under the former act.
Disablement?
 Disablement means loss of capacity to work or to move
 It may result in loss or reduction of his/her earning capacity.
 Disablement may be
 Partial
 Total
 Further it may be
 Permanent
 Temporary
Employer’s liability for compensation
1. Personal injury
2. Occupational Disease

Compensation for Calculation Minimum

amount
Death 50% of monthly wages * relevant age factor Rs. 80,000
Eg: Age 16 factor = 228.54, Age 65 factor = 99.37

Permanent total 60% of monthly wages * relevant age factor Rs. 90,000
disablement

Permanent partial % loss of earning capacity * relevant age factor

disablement

Temporary disablement 25% of monthly wages shall be payable every half

(total & partial) month till the disablement lasts

Note: Where the monthly wages of workman exceed Rs. 4000, his monthly wages shall be
deemed to be Rs.4000 only.
Trade Unions Act, 1926
 Trade Union – “An association of workers in a particular
craft or industry” and now it symbolize
 Workers’ right to organize
 Their right to press their demands collectively and to go on strike if
their demands are not accepted

 Object?
 To regulate the conditions governing the registration of trade
unions
 Obligations imposed upon a registered trade union and
 Rights & liabilities of registered trade unions
Indian Partnership Act, 1932
 A contract of uberrimae fidei- “utmost good faith” i.e partnership
contract must run with mutual trust and confidence
 Min: 2 competent persons
 Max: on banking business should not exceed 10, any other business not
exceeding 20
 Profit must be distributed in “agreed ratio”
 Documents which contains the agreement is called “Partnership Deed”
and it contains
 nature of business,
 principal place of business,
 name and address of the partners,
 management,
 accounts
 Deed must be duly stamped as required by the Indian Stamp Act, 1889
 Payment of Wages Act, 1936
 Object?
 To avoid with holding wages, delays in paying wages & making
unreasonable deductions out of wages.

 This Act is applicable to persons whose wages does not exceed Rs. 6500 per month
(2005) or such other higher sum which, on the basis of figures of the Consumer
Expenditure Survey published by the National Sample Survey Organisation, the
Central Government may, after every five years, by notification in the Official
Gazette.
 Wage period – shall not exceed 1 month
 Time of payment of wages
 <1000 persons – before the expiry of the 7th day of the following wage period
 >1000 persons - before the expiry of the 10th day of the following wage period
 Termination of employment – before 2nd working day from the terminated day
 Wages to be paid on a working day
Deductions from wages
 Medium of payment of wages – current coin or currency notes or both,
after obtaining written authorization of the employed person, payment
can be made either by cheque or by crediting the wages in bank account

 Deductions from wages

 Fines (shall not exceed 3% of wages payable to him in that wage period)
 Absence of duty
 Services like house accommodation, amenities etc
 Recovery of advances
 Recovery of loans
 Payments to co-operative societies & insurance schemes
 Other deductions such as income tax, PM’s Relief fund etc
Maintenance of registers & records
 Every employer shall maintain registers & records giving
the following particulars of the persons employed by him:
 the work performed by them
 the wages paid to them
 the deductions made from their wages
 the receipts given by them
The Industrial Employment (Standing
Orders) Act, 1946

 Object?
 To require employers in industrial establishments to define
with sufficient precision the conditions of employment under
them & to make the said conditions known to workmen
employed by them.
Matters to be provided in Standing Orders
 Classification of workmen
 Manner of intimating to workmen about periods & hours of work,
holidays, pay days & wage rates
 Shift working
 Attendance & late coming
 Conditions of procedure in applying for, and the authority which may grant
leave & holidays
 Requirement to enter premises by certain gates, & liability to search
 Closing & reopening of sections in Industrial Establishment, temporary
stoppages of work & the rights & liabilities of workmen & employer arising
therefrom.
 Termination of employment & respective notice
 Suspension or dismissal for misconduct & related actions
 Redress mechanism against unfair treatment
Procedure for Certification of Standing orders

Within 6 months of the application of the Act to an industrial establishment (100 or more
workmen), the employer shall submit 5 copies of the draft standing orders to the Certifying
Officer (Labor Commissioner or a Regional Labor Commissioner etc)

Certifying Officer shall send a copy of draft standing orders to be sent to trade union or
workmen

Opportunity of hearing to trade union/workmen to be provided

Certify & send copies to employer, workmen & trade unions within 7 days
The Industrial Disputes Act, 1947
 Object?
 To secure industrial peace
 By preventing & settling industrial disputes between the employers &
workmen
 By securing & preserving amity & good relations between the employers
& workmen through an internal Works Committee
 By promoting good relations through an external machinery of
conciliation, Courts of Inquiry, Labor Courts, Industrial Tribunals &
National Tribunals
 To improve the condition of workmen in industry
 By redressal of grievances of workmen through a statutory machinery
 By improving job security
What is Industrial dispute?
 It means any dispute or difference between
 employers & employers
 employers & workmen
 workmen & workmen, which is connected with
a) The employment or non-employment
b) The terms of employment
c) The conditions of labor of any person

 It includes both individual & collective disputes

Important Terms
 Lay off – Failure/Refusal/Inability of an employer to give employment
to a workman due to
 Shortage of coal, power or raw material.
 Accumulation of stocks.
 Breakdown of machinery.
 Natural calamity.
 Lock out – Temporary closing of a place of employment or suspension
of work or refusal by employer (Employer’s weapon)
 Closure – Closing the business due to actual loss or apprehended loss
 Retrenchment – Employees terminated on account of surplus labor
 Strike – Cessation of work by workmen
 Unfair labor practices
Conciliation Machinery
 Work committees
 Conciliation Officer
 Board of Conciliation
 Courts of Inquiry

Adjudication Machinery
 Labor Courts
 Industrial Tribunal
 National Tribunal
Factories Act, 1948
 Factory means any premises where in a manufacturing
process
 10 or more persons are engaged if power is used or
 20 or more persons are engaged if power is not used

 Object?
 To protect children & to provide for some health &
safety measures.
State Government / Chief Inspector
1. Site Approval for a factory before it is constructed
2. Submission of plans of Factories
3. Registration & Licensing of Factories
4. Appeal to State/Central Govt within 30 days if permission is refused
by Chief Inspector/State Govt respectively
5. Notice by the occupier
 Name & address of the factory, owner & occupier
 Address for communication
 Nature of manufacturing process
 Total rated horsepower
 Name of the manager
 No. of workers likely to be employed etc
Health of workers
 Cleanliness
 Disposal of wastes & effluents
 Ventilation & Temperature
 Dust & fume
 Artificial humidification
 Overcrowding
 Lighting
 Drinking water
 Latrines & Urinals
 Spittoons
Safety of workers
 Fencing of machinery
 Work on near machinery in motion
 Employment of young persons on dangerous machine
 Striking gear & devices for cutting off power
 Self acting machines
 Casting of new machinery
 Prohibition of employment of women & children near cotton opener
 Hoists & Lifts
 Lifting machine, chains, ropes & lifting tackles
 Revolving machinery
Safety of workers
 Pressure plant
 Floors, stairs and means of access
 Pits, sumps, openings in floors etc
 Excessive weights
 Protection of eyes
 Precautions against dangerous fumes
 Precautions regarding the use of portable electric light
 Precautions against explosive or inflammable dust, gas, fire etc.
 Power to require specifications of defective parts or tests of stability
 Safety of building & machinery
 Maintenance of building
 Safety officers
Welfare of workers
 Washing facilities
 Facilities for storing & drying clothes
 Facilities for sitting
 First aid appliances
 Canteens
 Shelter, rest rooms & lunch rooms
 Creches (>30 women workers)
 Welfare officers (>500 workers)
Working hours
 Not more than 48hours per week or 9 hours per day
 Intervals of rest – fixed by factory
 Women employees – 6AM to 7PM

 Ordinary rate of wages = Basic wage + Allowances

 Extra wages for overtime – wages at twice the ordinary rate

 Annual leave with wages

 1 day for every 20/15 days of work performed in case of adult/child
 Application for leave – atleast 15 days before for private, 30 days for public
utility service
 Maternity leave not exceeding 12 weeks
Employees’ State Insurance Act, 1948
 Object?
 The Act is a piece of social security legislation conceived as a
means of extinction of the evils of the society, namely, want,
disease, dirt, ignorance and indigence

 Applicability of the Act for employees is Rs. 10000/- per month (Gross
Salary).

 Benefits?
 Sickness benefit
 Maternity benefit
 Disablement benefit
 Dependants’ benefit
 Medical benefit
 Funeral expenses
 Employee?
 Any person employed for wages in or in connection with the work of
a factory or establishment
 Directly employed by the principal employer

 Employed through an intermediate employer

 Contract employees

 Apprentice, not being an apprentice engaged under the

Apprentices Act, 1961 or under Standing Orders

 Wages?
 All remuneration paid in cash to an employee except employer
contribution to pension & provident funds, travelling allowance,
special expenses paid and gratuity payable on discharge
Contribution?
 Contribution – Sum of money payable to ESI Corporation by the principal
employer & employee
 Contribution period – Must not exceed 6 consecutive months

Contribution by Rate of Contribution

Employer A sum equal to 4.75% of the total wage bill of all employees rounded
to the next higher rupee + 1.16% Admin charges
Employee A sum equal to 1.75% of his/her wages rounded to next higher rupee

 Employee Contribution is exemption for employees whose wages are <

Rs.50 per day
 Default in payment of contribution – to pay simple interest at 12% or more
per annum, till the date of its actual payment
 All disputes arising out of this are resolved by Employees’ Insurance Court
Minimum Wages Act, 1948
 Object?
 To secure the welfare of the workers in a competitive market
by fixing the minimum rates of wages in certain employments

 Scheduled employment – Workers in mines, plantation,

transport, mills etc

 Appropriate State Government shall fix

 minimum rate of wages for time work
 minimum rate of wages for piece work
 guaranteed time rate
 overtime rate
Fixation & Revision of wages
 Fixation & revision of minimum wages are done by
appropriate Government through either of the 2
methods
1. Appointment of committees & sub-committees as it
considers necessary to hold inquiries
2. Publication of proposals in the Official Gazette

 Appropriate Government shall consult with Advisory

Boards before fixing/revising minimum wages
Employees’ Provident Fund &
Miscellaneous Provisions Act, 1952
 Object?
 It is a social security measure meant to induce employees to save a
portion from their present earnings for a rainy day

 Authorized Officer?
 Central PF Commissioner
 Additional Central PF Commissioner
 Deputy PF Commissioner
 Regional PF Commissioner
 Contribution is made to
 Employees’ Provident Fund Scheme
 Employees’ Pension Scheme & Fund
 Employees’ Deposit Linked Insurance Scheme (EDLI) & Fund
Contribution
 ESI is covered to employees whose wages are upto Rs.10,000 per month
 Basic Salary = Basic Wages + Dearness Allowance including cash value
of any food concession + Retaining Allowance

Employee Contribution Employer’s Contribution

12% of Basic Salary 12% of Basic Salary + 1.61%

Pension Fund: 8.33% of Basic Salary or

Rs.541 whichever is lesser

Provident Fund: 3.67% of Basic Salary

Administrative charges 1.10%of Basic Salary

EDLI Fund 0.50% of Basic Salary
Administrative charges
for EDLI Scheme 0.01%of Basic Salary
Company Act, 1956
 Company - “ an association of many persons who
contribute money or money’s worth to a common stock
and employ it in some common trade or business(for
common purpose) and who share the profit or loss arising
there from”
Characteristics of the company
1. Separate legal entity
2. Limited liability
3. –limited by shares
4. –limited by guarantee
5. Perpetual succession
6. Common seal
7. Transferability of shares
8. Separate property
9. Capacity to sue
 Company Vs Partnership

Company Partnership
Regulated under Companies Partnership Act 1932
Act 1956
Exits after registration under Registration not mandatory
Co.Act 1956
Managed by Directors, Board of Every partner should take part in
Directors the management
Property and rights is Transferable to any or all
nontransferable to shareholders partners
 Company Vs Partnership
Shares are transferable when the Shares cannot be transferred
transferee becomes the member without the concern of all partners

Shareholders is not the agent…has Each partner is an agent…has

no power power
Members Public Pvt Min-2
Min 7 2 Max- banking 10
Max No limit 50 others 20
Bound by law and audited annually No statutory provisions

Only it can be dissolved (Wound by Dissolved by death/ insolvency of

provisions of companies Act 1956) partner or wound if it is for fixed
period.
 Public Co. Vs Private Co.
Public Co. Private Co.
Min members- 7 Min- 2
Max members - no limit Max - 50

File with registrar to act as Director No restriction

Invites public to subscribe for shares No public invitation

/ issues

Quorum members –5 2

Managerial remuneration cannot No restrictions

exceed 11% of NP

No privileges Special priviliges

Documents to be filed with Registrar for getting
Certificate of Incorporation
• Memorandum of Association signed by the subscribers
• Fundamental document
• Lays down the area of operation
• Regulates the external affairs of the co in relation to outsiders
• Articles of Association if any(public limited co limited by shares need
not have its own AOA
• Rules and regulations and bye-laws for the internal management of the affairs of a
company.
• Agreement between the Co and the individual for the appointment of
whole time Director or Manager
• List of directors agreed to act as director with their written consent
• Declaration relating to companies act and formalities related to
registration
Employment Exchanges (Compulsory Notification
of Vacancies) Act, 1959
 Object?
 To provide for the compulsory notification of vacancies to
employment exchanges.

 Act is applicable to vacancies in posts of a technical and scientific nature carrying a

basic pay ≥ Rs.210 per month occurring in establishments or to be circulated to the
Employment Exchanges outside the State or Union Territory

 Act is not applicable to any employment in

 agriculture, horticulture etc
 domestic service,
 the total duration of which is less than three months,
 to do unskilled office work,
 connected with the staff of Parliament.
 Form and manner of notification of vacancies
(1) Name and address of the employer ;
(2) Telephone number of the employer, if any ;
(3) Nature of vacancy :-
(a) Type of workers required (Designation) ;
(b) Description of duties ;
(c) Qualifications required - (i) Essential, (ii) Desirable
(d) Age-limits if any ;
(e) Whether women are eligible ?
(4) Number of vacancies - (a) Regular, (b) Temporary
(5) Pay and allowances
(6) Place of work (name of town/village and district in which it is situated).
(7) Probable date by which the vacancy will be filled
(8) Particulars regarding interview/test of applicant - (a) Date , Time & Place of interview/test (b)
Designation and address of the person to whom applicants should report
(9) Whether there is any obligation or arrangement for giving preference to any category of
persons such as Scheduled Castes, Scheduled Tribes, ex-Servicemen and physically
handicapped persons in filling up the vacancies, and if so, the number of vacancies to
be filled by such categories of persons.
(10) Any other relevant information
 Time limit for notification of vacancies & selection
 Atleast 15 days before the applicants will be interviewed or tested.
 Employer to furnish the result of selection within 15 days.

 Submission of Returns
 Quarterly in Form ER-I - Within 30 days by 30th June, 31st March, 30th September
& 31st December
 BIENNIAL Return Form ER-II – Within 30 days of the due date as notified in the
Official Gazette
Apprentices Act, 1961
 “An apprentice is bound to obey his master in all his lawful
commands, take care of his property and promote his
interest, endeavor to learn his trade or business, & perform
all the conditions of his contract not contrary to law. He
must not leave his master’s service during the term of his
apprenticeship”

 Object?
 To provide for the regulation & control of training of
apprentices
Types
 Technician (Vocational) Apprentice
 Undergo training for 2 years inorder to hold a certificate in vocational
course after completing secondary stage of school education, recognized
by All India Council of Technical Education
 Trade Apprentice
 Undergo apprenticeship training in any trade or business

Qualifications for being an apprentice

 14 years of age or above
 satisfies the standard of education & physical fitness as prescribed for
apprenticeship training
Employer’s responsibilities
 Total number of hours/week = 42 to 48 (6AM to 10PM)
 Employer shall look after
 Offer & Acceptance of employment
 Practical & basic training of apprentices & related instructions
 Health, Safety & Welfare of apprentices
 Leave / Overtime hours
 Payment of stipend
 Compensating for injury during training
 Holding test & granting certificate
 Records, settlement of disputes
Maternity Benefits Act, 1961
 Object?
 To regulate the employment of women in certain establishments for
certain periods before & after child birth & to provide for maternity
benefit & other certain benefits

 Wage?
 Remuneration in cash + Cash Allowances including DA & HRA + Incentives
+ Money value of food grains
 Maternity benefit is a payment to a women (should have worked atleast
80 days in the 12 months immediately proceeding the date of her
expected delivery ) at a rate of the average daily wage for the period of
her actual absence
 Maternity benefit is given for a maximum period of 12 weeks, of which
not more than 6 weeks shall precede the date of her expected delivery
Liabilities of Employer
 Pregnant women are prohibited to work in establishments during a
period of 6 weeks immediately following the day of her delivery or her
miscarriage

 Employer is liable to pay maternity benefit to her nominee or that

woman even in case of death of that woman/child respectively

 2 nursing breaks per day shall be allowed until the child attains the age
of 15 months

 6 weeks leave shall be allowed for miscarriage on production of the

prescribed proof
Payment of Bonus Act, 1965
 Bonus – “gratuity to workmen beyond their wages”

 Object?
 To maintain peace & harmony between labor & capital by allowing
the employees, in recognition of their right, to share in the
prosperity of the establishment reflected by the contributions made
by capital, management & labor

 A minimum bonus of 8.33% of the (Salary + DA) or Rs. 100 whichever is

higher - paid to all employees whose salary is up to Rs.3500 per month
& worked for not less than 30 days for that year
 Bonus is no longer linked with production & profitability and so it is a
statutory liability for an employer on completion of 5 years after 1st
Accounting year even if there is no profit
 60 or 67% of available surplus is allocated for bonus
Contract Labour (Regulation & Abolition)
Act, 1970
 Object?
 To regulate the employment of contract labour in certain
establishments and to provide for its abolition in certain
circumstances and for matters connected therewith.

 Liability of Principal Employer

 To ensure provision for canteen, restrooms, sufficient supply of drinking
water, latrines and urinals, washing facilities.
 Principal employer entitled to recover from the contractor for providing
such amenities or to make deductions from amount payable

 Every contractor shall maintain Muster Roll, Register of wages, Register of

Deductions, Register of Overtime, Register of Fines, Register of Advances,
Wage slip & display the abstract 0f rules & Act in English & regional language.
 Registration of Establishment
 Principal employer employing 20 or more workers through the
contractor or the contractor(s) on deposit of required fee in Form 1
as given below. If the number of workmen proposed to be employed
on contract on any days-
(a) is 20 Rs.60
(b) exceed 20 but does not exceed 50 Rs.150
(c) exceed 50 but does not exceed 100 Rs.300
(d) exceed 100 but does not exceed 200 Rs.600
(e) exceed 200 but does not exceed 400 Rs.1200
(f) exceeds 400 Rs.1500

 Prohibition of Employment of Contract Labour

 Only by the appropriate Government through issue of notification
after consultation with the Board (and not Courts) can order the
prohibition of employment of contract labour.
 Licensing of Contractor
 Engaging 20 or more than 20 workers and on deposit of required fee
in Form IV as given below.
 If the number of workmen employed by the contractor on any day-

(a) is 20 Rs.15.00
(b) exceed 20 but does not exceed 50 Rs.37.50
(c) exceed 50 but does not exceed 100 Rs.75.00
(d) exceed 100 but does not exceed 200 Rs.150
(e) exceed 200 but does not exceed 400 Rs.300.00
(f) exceed 400 Rs.375.00

 It is valid for specified period.

Payment of Gratuity Act, 1972
 Principle?
 By faithful service over a long period, the employee is entitled to claim a certain
amount as a retirement benefit
 Gratuity is paid out at the time of superannuation (if you retire at the age of 58),
when you retire (at any other age) or resignation, and in the event of your death or
being rendered disable because of an accident or illness. You need to have at least 5
full years of service with an employer to qualify for gratuity.
 Rate of Gratuity

• Every completed years of service * 15

Gratuity =
days wages
15 days wages =
• {(Monthly Basic + DA) /26} * 15 days
(based on last salary drawn)

• Shall not exceed Rs. 3,50,000 as per

Maximum gratuity
Act & it is not taxable
Application for gratuity
 An employee or his/her nominee shall write to the employer within 30
days from the date the gratuity become payable or shall be applied
before 30 days if date of superannuation is known

 If it is not paid by the employer within 30 days, then he shall pay simple
interest as prescribed by Central Government

 The grievances are redressed by controlling authority and the collector

shall recover the gratuity amount + compound interest from the
employer
Equal Remuneration Act, 1976
 Object?
 To provide for the payment of equal remuneration to men and
women workers and for the prevention of discrimination, on the
ground of sex, against women in the matter of employment and for
matters connected therewith or incidental thereto

 Duties of employer
 To pay equal remuneration to men and women workers for same work or work of a
similar nature
 No discrimination to be made while recruiting [or promoting/training /transferring]
men and women workers except where the employment of women in such work is
prohibited or restricted by any law and it shall not affect any reservations for SC, ST,
Ex-Servicemen etc.

 The appropriate Government shall constitute one or more Advisory

Committees to increase employment opportunities for women
Penalties
If an employer –

 Omits or fails to produce any register, muster-roll, any information or other document
relating to the employment of workers - he shall be punishable with simple
imprisonment for a term which may extend to 1 month or with fine which may extend to
Rs.10,000 or with both

 Makes any recruitment or discrimination in wages in contravention of the provisions of

this Act - he shall be punishable with fine of Rs.10,000 to Rs.20,000 or with
imprisonment for a term of 3 months to 1 year or with both for the first offence, and with
imprisonment which may extend to 2 years for the second and subsequent offences

 If any person being required so to do, omits or refuses to produce to an Inspector any
register or other document or to give any information, he shall be punishable with fine,
which may extend to Rs.5000
Professional Tax Act, 1976
 Object?
 To provide for the levy & collection of tax on
professionals , trade callings & employment in the state.

 The set of professional tax slabs in India are different for all the 28 states in
India and some of the states have formulated different professional tax slabs for
men, women, and the senior citizens of the respective states.

 Eg: Tamil Nadu's Tax Slabs: Half yearly basis Half yearly Income Monthly Professional Tax
Less than Rs.21000 Nil
Between Rs.21001-Rs.30000 Rs.75
Between Rs.30001-Rs.45000 Rs.188
Between Rs.45001- Rs.60000 Rs.390
Between Rs.60001- Rs.75000 Rs.585
Beyond Rs.75001 Rs.810
 Date of payment
 15th of succeeding month + additional 5 days grace
Inter-state Migrant Workmen (Regulation of
Employment & Conditions of Service ) Act, 1979

 Object?
 To regulate the employment of inter-State migrant
workmen and to provide for their conditions of service
and for matters connected therewith.

 Inter-State migrant workman

 Any person who is recruited by or through a contractor in one State under
an agreement or other arrangement for employment in an establishment in
another State, whether with or without the knowledge of the principal
employer in relation to such establishment;
Duties of Contractors
 To furnish prescribed particulars to the specified authority in State from which an inter-
State migrant workman is recruited and in the State in which such workman is employed,
within 15 days from the date of recruitment and also to intimate if there are any changes
in employment

 To issue to every inter-State migrant workman, a pass–book affixed with a passport size
photograph of the workman and indicating in Hindi/Regional and English languages -
 (i) the name and place of the establishment wherein the workman is employed;
 (ii) the period of employment;
 (iii) the proposed rates and modes of payment of wages;
 (iv) the displacement allowance payable;
 (v) the return fare payable to the workman on the expiry of the period of his employment and in
such contingencies as may be prescribed and in such other contingencies as may be specified in
the contract of employment;
 (vi) deductions made; and others.
Wages, Welfare & other facilities
 The wage rates, holidays, hours of work and other conditions of service of an inter-State
migrant workman shall remain the same as any other workman in that establishment and
Minimum Wages Act, 1948 is also applicable to them

 Non-refundable displacement allowance = 50% of the monthly wages payable to him or

Rs.75 whichever is higher

 Journey allowance ≥ the fare from the place of residence of the inter-State migrant
workman in his State to the place of work in the other State

 Other facilities such as suitable conditions of work, residential accommodation,

prescribed medical facilities (free of charge), protective clothing are also applicable

 To ensure regular payment of wages, equal pay for equal work irrespective of sex, in case
of fatal accident or serious bodily injury to any such workman to report to the specified
authorities of both the States and also the next-of-kin of the workman
 Child Labour (Prohibition and Regulation)
Act, 1986
 Object?
 To prohibit the engagement of children in certain employments
and to regulate the conditions of work or children in certain other
employments.

 Child means a person who has not completed his fourteen years of age.

 Penalties
 Violations under Section-3 shall be
 punishable with imprisonment - 3 months to 1 year or

 with fine of Rs.10,000 to Rs.20,000 or with both.

 Continuing offence shall be punishable with imprisonment for a term of 6 months to 2 years.
Unorganized Workers Social Security Act,
2008
 Object?
 To provide for the social security and welfare of unorganised
workers and for other matters connected therewith or
incidental thereto.

 Unorganized workers means a home based worker, self employed 0r a wage

worker in the unorganized sector & includes a worker in the organized sector
who is not covered under
 The Central Government formulated schemes for different sections of
unorganized workers on matters relating to
 life and disability cover;
 health and maternity benefits;
 old age protection
 any other benefit as may be determined by the Central Government

 The State Government formulated schemes for unorganized workers

relating to
 provident fund,
 employment injury benefits,
 housing,
 educational schemes for children,
 skill upgradation,
 funeral assistance and
 old-age homes