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1. Salient features of Payment of GratuityAct, 1972.The Payment of Gratuity Act 1972 is a social security enactment. An Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, Railway companies, shops or other establishments.Me...

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1. Salient features of Payment of Gratuity Act, 1972. The Payment of Gratuity Act 1972 is a social security enactment. An Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, Railway companies, shops or other establishments. Meaning of Gratuity It is derived from the word ‘gratuitous’, which means ‘gift’ or ‘present’. However, having being enacted as a social security form, it ceases to retain the concept of a gift but it has to be seen as a social obligation by an employer towards his employee. it is a retirement benefit paid as gratitude to the employees who have rendered a continuous service for at least five years to incentivize them so that they continue working efficiently. It is an amount paid to an employee based on the duration of his total service but an employee becomes eligible only after he has completed 5 years of his service. Gratuity is paid to an employee when he either retires or his employment is terminated or he resigns or upon his death. Gratuity is given the force of law by the Payment of Gratuity Act 1972, which is further administered and enforced by the Central Government and the designated establishments under its control. Eligibility for Gratuity As per Section 4of the Act An employee who has rendered not less than five years of service becomes entitled to gratuity on: (i) his superannuation; or (ii) on his retirement; or (iii) resignation; or (iv) on his death or disablement.

The pre requisite of 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. Disablement in such a case would mean disablement which incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.  Amount of Gratuity 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 In the case of a 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 (in a piece rated system there may not be the concept of basic, DA, HRA, CCA etc. In the case of an employee who is employed in a seasonal establishment and who is not so employed throughout the year, the employer shall pay the gratuity at the rate of seven days’ wages for each season. In the case of a monthly rated employee, the fifteen days’ wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fifteen. The amount of gratuity payable to an employee shall not exceed Rs.20,00,000. In the case of a monthly rated employee, the fifteen days’ wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fifteen. The amount of gratuity payable to an employee shall not exceed Rs.20,00,000.  Compulsory Insurance By Amendment Act of 1987 the provision for compulsory insurance has been inserted in the Act. The act requires every

employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a State Government to obtain an insurance in the manner prescribed, for his liability for payment towards the gratuity under this Act, from the Life Insurance Corporation of India established under the Life Insurance Corporation of India or any other prescribed insurer.

 Recovery and Penalty in case of Non-payment by Employer 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 the from the date of expiry of the prescribed time, as arrears of land revenue and pay the same to the person entitled thereto. Whoever, for the purpose of avoiding any payment to be made by himself 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 six months, or with fine which may extend to 1[ten thousand rupees or with both.

 Protection of Gratuity from Attachment No gratuity payable under this Act and no gratuity payable to an employee employed in any establishment, factory, mine, oilfield, plantation, port, railway company or shop exempted under Section 5 shall be liable to attachment in execution of any decree or order of any civil, revenue or criminal court.  Exemption From Tax

Gratuity is paid when an employee completes five or more years of full-time service with the employer. Taxability of gratuity depends on the recipient. In case of government employees there is no tax on the gratuity In case of private sector employees, if they are covered under the Payment of Gratuity Act, 1972, then the gratuity is exempt from tax subject to a maximum of Rs 10 lakh or 15 days salary for each completed year of service (or part thereof) Where the gratuity is received in any of the previous years and if any exemption was allowed for the same, then the exemption to be allowed during the retirement year gets reduced to the extent of exemption already allowed, subject to the overall limit of Rs 10 lakh.

 Procedure for resolving the disputes Where there is a dispute, the aggrieved party shall make an application to the controlling authority for deciding the dispute. controlling authority shall, after due inquiry and after giving the parties to the dispute a reasonable opportunity of being heard, determine the matter and pass appropriate orders.  Forfeiture of Gratuity The Act states that if an employee's services are terminated due to any act, wilful omission or negligence causing damage or loss to or destruction of property of the employer, the employee's gratuity shall be forfeited to the extent of damage or loss. The full amount of gratuity can be forfeited if an employee's services have been terminated due to: a) His riotous or disorderly conduct or any other violent act. b) Committing an offence involving moral turpitude.

Conclusion Employees are the back bone of a business organisation. No business can flow or progress without the heartly cooperation of employees and hard work of their employees. Thus, it is the moral duty of every organisation to recognise their valuable contribution and to take care of them specially at the time of their retirement and their severance with the organisation and the failure to the same will results in hardship and exploitation of poor employees on the hands of capitalistic powers.

2.Registration procedure and Authorities under Karnataka Shops and Commercial Establishments Act, 1961. Karnataka Shops and Establishment Act The Karnataka Shops and Establishment Act regulates the operations of shops and commercial establishments. The Karnataka Shops and Establishment Act was introduced to regulate the hours of work, annual leave with wages, wages and compensation, employment of women and children and other aspects of shops or commercial establishment. In this article, we review the Karnataka Shops and Establishment Act in detail. Shops and Establishment Act The Shops and Establishment Act has been enacted by various State Governments to regulate the conditions of work of employees in shops, commercial undertakings, restaurants, etc., All commercial establishments must abide by The Weekly Holiday Act, 1942 enacted by the Central Government which governs the grant of holidays. However, there is no specific Central Government Act which comprehensively governs hours of work, payment of wages, health and safety in commercial establishments. To bridge this gap, state Governments have

enacted a Shops and Establishment Act to help regulate the conduct of commercial establishments within their jurisdiction. To know more, read the article on “Shops and Establishment Act in India”. Karnataka Shops and Establishment Act Registration Karnataka Shops and Establishment Act registration is mandatory for all shops and commercial establishments in Karnataka, except those exempted. New shops or commercial establishments in Bangalore or Karnataka are required to apply for Karnataka Shops and Establishment Act Registration within 30 days of commencing operations. The Shops and Establishment Act Registration must be submitted in the prescribed format to the Labour Inspector of the area concerned. The following information must be provided as a part of the Shop and Establishment Act Registration application: o o o o

The name of the employer and manager, if any The postal address of the establishment; The name, if any, of the establishment; and Such other particulars as may be prescribed.

On submission of the application, the Inspect would verify and provide the Shops and Establishment Act Registration. All Karnataka Shops and Establishment Act registrations are valid for a period of 5 years and can be renewed

3. Various Central Government Schemes provided under the Unorganized Workers, and Social Security Act, 2008 to overcome the problems faced by the unorganized workers.

Definitions There are various definitions given by different Commission and others. But here we will be discussing the most important definitions. According to the report of the National Commission on Labour in 1969. ‘Unorganized workers’ are other groups of workers who are not covered under the definition and can organise in pursuit of a common goal due to force such as: -

 Casual nature of employment.  Ignorance and illiteracy.  Establishment of small size with the low capital invested per person employed.  Scattered nature of establishments.  Muscular strength of the employer operating either singly or in combination. National Commission also gives some categories of workers, which can be categorised as unorganised workers, which are the following:

 Contract-based worker and it also includes workers engaged in the construction work.  Informal(casual) labour.  Labour engaged in small industry.  Handloom/ power worm workers.  Beedi and cigar workers.  Employed in shops and commercial establishments.  Sweepers and scavengers.  Workers in teaberries.  Tribal labour.  Other unprotected labour.

Problems faced by the workers As being the weaker section of the society, they face many challenges. They are as follows.

 Low wages– Wages is only the factor for which any person/employer works. As the labourer is getting meagre wages. As there is the Minimum Wages Act defines the minimum wage, which needs to be paid to the worker, but the worker fails to get minimum wages. The Supreme Court of India ruled that employing workers at wage rates below the statutory minimum wage levels is considered as the forced labour and is the infringement of Article 23 of the Constitution of India even though economic compulsion might drive one to volunteer to work below the statutory minimum wage.  No Knowledge about Work Hazardous and Occupational Safety-The working conditions in the unorganised sector is the leading cause to have an adverse effect on the health conditions of workers. Concerning home workers, most of the studies reported that labourers suffer from health problems.  The health problems are mostly related to respiratory due to inhalation of the tobacco dust and body ache, or due to the peculiar posture that has to be maintained at all times of work. Unguarded machinery, various toxic chemical coal, dust lime, dust blaze, the raw material for synthetic generation leads to the death of many unorganised workers because the working conditions are more severe and knowledge of occupational health and safety is negligible.  Maximum workers are living in deplorable conditions: -They live in unsanitary conditions and likewise battle with sewer seepage framework overflowing drainage system, flooding and storms. They live in a slum area. The facilities such as washing, urinal, toilets facilities at work are found to be below standard. It could be said that no such facilities were provided to workers in the industries.

 Extended Hours of Work: -Long hours of work in the unorganised sector beyond the labour and regulatory norms are standard in India. In the agricultural sector, there are no fixed hours of work as there are no laws to act as guidelines for the working conditions of agricultural labourers.  In the case of non-agricultural sectors such as fireworks, matchmaking, power looms and so on, workers started their work very early in the morning at 6:00 a.m. and continue till the evening. In the handloom sector, the work is organised in such a way that wages were based on 12-15 hours of work per day. A large number of workers and the labourers are illiterate and as a result, the employers exploit the labourer by forcing them to work for extra hours. Due to long working, social isolation of migrant workers, high level of unemployment, illiteracy and lack of awareness are the major hurdles in organising themselves.  No Knowledge About the Trade Union or Labour Union: -Not many but most are not aware of the existence of Trade Union and their rules. The primary purpose of the establishment of the Trade Union is to settle the dispute that may arise between the employer and employee. Trade Union means a Trade Union which is for the time registered under the Trade Unions Act,1926. Trade Union which can be analysed into the following ingredients. Social security schemes Subsection 1 of Section 3 of the Act states that Union Government and State Government shall formulate schemes from time to time covering health and maternity relief, old age protection, life and disability and another benefit which may be notified by the central government.

S. No 1 2 3

Name of the Scheme Indira Gandhi National Old Age Pension Scheme. National Family Benefit Scheme. Janani Suraksha Yojana.

4 5 6 7 8 9 10

Handloom Weavers' Comprehensive Welfare Scheme. Handicraft Artisans' Comprehensive Welfare Scheme. Pension to Master craft persons. National Scheme for Welfare of Fishermen and Training and Extension Janshree Bima Yojana. Aam Admi Bima Yojana. Rashtriya Swasthya Bima Yojana.

Conclusion As many problems are faced by unorganised workers such as low wages, exploitation of workers, cruel conditions of workers etc. so the legislative system of India protects the rights of the unorganised workers with the help of various articles covered under the constitution of India

4. Regulation of the contract labour under the Contract (Regulation & Abolition) Act, 1970 The system of employment of contract labour lends itself to various abuses. The question of its abolition has been under the consideration of government for a long time. In The Second Five-year plan, the Planning Commission made certain recommendations, Namely, undertaking of studies to ascertain the extent of the problem of contract labour, abolition of system and improvement of service conditions of contract labour where the abolition was not possible. The matter was discussed at various meetings of the tripartite committee at

which the state government also represented and the general consensus of opinion was that the system should be abolished wherever possible or practicable and that in the case where the system could not be abolished altogether, the working conditions of contract labour should be regulated so as to ensure payment of wages and provision of essential amenities.

The object of the Act This act aims at the abolition of contract labour in respect of such category as may be notified by the appropriate government in the light of certain criteria that have been laid down, the service conditions of contract labour where abolition is not possible. It provides for the setting up of the advisory board of a tripartite character, representing various interests, Advises Central and state government in administering the legislation and registration of establishment and contractor. The Act provides for certain welfare measures and amenities to the Contract labour and also provides to guard against the delay in payment of wages.

THE ADVISORY BOARD AND COMMITTEES Sec 4. State Advisory Board. — (1) The State Government may constitute a board to be called the State Advisory Contract Labour Board to advise the State Government on such matters arising out of the administration of this Act as may be referred to it and to carry out other functions assigned to it under this Act. (2) a.

The State Board shall consist of— A Chairman to be appointed by the State Government;

b. The Labour Commissioner, ex-officio, or in his absence any other officer nominated by the State Government in that behalf;

c. the such number of members, not exceeding eleven but not less than nine, as the State Government may nominate to represent that Government, the industry, the contractors, the workmen and any other interests which, in the opinion of the State Government, ought to be represented on the State Board. (3) the term of office and other conditions of service of, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among the members of the State Board shall be such as may be prescribed:

Provided that the number of members nominated to represent the workmen shall not be less than the number of members nominated to represent the principal employers and the contractors.

Sec 5. Power to constitute committees. — (1) The Central Board or the State Board, as the case may be, may constitute such committees and for such purpose or purposes as it may think fit. (2) The committee shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be prescribed. (3) The members of a committee shall be paid such fees and allowances for attending its meetings as may be prescribed: Provided that no fees shall be payable to a member who is an officer of Government or of any corporation established by any law for the time being in force.

Procedure for getting an establishment registered If the Act applicable to an establishment the principal employer of the establishment has to make an application in

the prescribed form accompanied by prescribed fees to the Registering Officer for registration of the establishment under the Act. If the application is complete in all respects the Registering Officer will register the establishment and issue a certificate of registration in the prescribed form to the principal employer (Section 7). In cases where the principal employer of an establishment who has not obtained the required registration under section 7 or whose registration has been revoked under section 8 is prohibited from employing any contract labour in his establishment (Section 9)

Procedure for obtaining a license A contractor to whom the act is applicable has to make an application in the prescribed form accompanied by the necessary fees and security deposit to the Licensing Officer for grant of a license under the Act. The Licensing Officer after making the necessary investigation may issue a license in the prescribed form containing the conditions subject to which the same is granted. The license will be valid for the period specified therein and will have to be renewed from time to time (Section 13). The principal employer is under the obligation to ensure that a representative be present while the contractor is making the payment to the contract labour (Section...