The Contract Labour (Regulation and Abolition) Act, 1970

Saturday, May 26th, 2018 Amritesh no responses

The Contract Labour (Regulation and Abolition) Act, 1970 aims at regulating employment of contract employees hired by the employers and extending certain benefits to such employees as prescribed under the Labour Laws. The Contract Labour Act attempts to provide basic cover to the employees and ensure they do enjoy certain rights which are at par with the benefits extended to directly employed individuals. Respective Government is empowered to prohibit deployment of Contract Labour in any process and in any establishment, if it is of the opinion that conditions laid out under the Act is not being followed by the respective employers. Purview and Extent of Contract Labour Act The Act extends to whole of India. It is applicable to- #Every…

Benefits Calculation Under Gratuity Act

Saturday, December 16th, 2017 Amritesh 4 responses

Gratuity is provided to Employees in recognition of their service rendered to the Organization. The minimum tenure of service to be eligible for Gratuity is 5 years (4 years and 240 days). Benefits Calculation Under Gratuity Act is simple and easy to understand. In my earlier post I have discussed about the Gratuity Act, 1972 and the salient features of the act. Here I would discuss the calculation of Gratuity and Tax Liability on the same. Refer to the link shared below. Gratuity Act 1972 HOW DOES IT WORK? Every employer has to obtain insurance for his liability to pay gratuity from a Life Insurer. But if an employer has already established an approved Gratuity Fund [as per Section 2(5)…

Payment of Gratuity Act

Friday, December 15th, 2017 Amritesh one response

Gratuity is a benefit extended to the Employees in gratitude of the service rendered to the Organization/Employer. Gratuity like other Statutory Benefits like Provident Fund and Pension Fund is received by the employee at the end of their employment tenure. Gratuity Act was introduced in 1972 as Payment of Gratuity Act, 1972. However in the Appointment Letter, Annual Increment letter you will find CTC includes the Gratuity as well. In fact, while arriving at Cost to Company (CTC) for an employee, the gratuity is calculated as 4.83% of the Salary. Thus it is a component of Individual’s Compensation package (Salary). Now let’s understand the Gratuity Act and benefits for the employees’. Applicability The Act is applicable to:- Every factory, mine,…

Maternity Benefit Act (Amendments) 2017

Thursday, March 30th, 2017 Amritesh 18 responses

The Maternity Benefit Act is aimed at regulating employment of women employees in certain establishments for periods before and after child birth to provide maternity as well as certain other benefits. Additional benefits may also be extended as per the provision of the State Act or as per the company policies. The Act is in place to protect the rights of the female employees and ensure that employers do not violate the benefits applicable to them. Establishment needs to ensure that the provisions of the Act is strictly adhered to and any violation will attract legal prosecution. The Objective of the Maternity Benefit Act is to ensure that the well being of the mother and the child is not compromised…

Amendments In Payment Of Gratuity Act: Proposed

Sunday, February 26th, 2017 Amritesh 25 responses

Gratuity Payment Act is expected to be amended soon. In the recently concluded tripartite meeting it has been decided that the Tax Free Gratuity limit to be enhanced to Rs 20 lakhs from Rs 10 lakhs to bring it at par with the Government employees who enjoy similar benefits as per the recommendations of the 7th Pay Commission. Official Notification on the same is expected soon. Few more amendments in Payment of Gratuity Act has been proposed. The recommendation to increase the Tax Free Gratuity to Rs 20 lakhs has been agreed upon by the Labour Ministry and the Central Unions. The move will benefit Individuals employed in the private sectors. Along with it, host of other reforms were also…

Minimum Wages Act,1948

Saturday, December 31st, 2016 Amritesh 2 responses

  Minimum Wages Act envisages to fix minimum standard wage in scheduled employments thereby protecting the interest of the wage earners. The Act aims to eradicate the exploitation of labour at the hands of the respective employers. The Act also provides provision for maximum daily working hours, periodic rest day and also overtime wages. It lays out provision to protect the interest of the employees and provide them with minimum wage deemed ideal to sustain themselves and their dependents.   Coverage and Applicability Minimum Wages Act extends to whole of India and is applicable to all the establishments employing one or more Individuals included under the Scheduled Employment list. Every Employee working in any scheduled employment is covered under the…

Payment Of Bonus Act 1965 (Amendment 2015)

Tuesday, November 25th, 2014 Amritesh 3 responses

In this article I will speak about the Payment of Bonus Act, 1965 which is a statutory benefit for the employees and does not cover any performance linked incentive, bonus or commission. It is a Statutory binding for the Employers to pay Bonus to the Employees covered under the Act. The Last Amendment was made on 1st January,2016 with the applicability effective retrospectively from 1st January,2014.   Applicability The Act extends to the whole of India and is applicable to every factory (as defined under Factories Act) and to every establishment wherein 20 or more workmen are employed on any day during the accounting year. Central/State Government can however, extend its provisions to any establishment employing less than 20 but…
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