Noida Institute of Engineering and Technology, Greater Noida

Labor Law-III

Unit-V

Employee Relations and Labour laws

AMBA HR 0312
Vijaylaxmi
MBA
MBA Department
III Sem

Ms.vijaylami BMBAHR 0312 ER&LL Unit V

1
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 Index/Content
S. No. Index
1.
Name of Subject with code, Course and Subject Teacher

2.
Brief Introduction of Faculty member with Photograph

3. Evaluation Scheme
4. Syllabus
5. Branch wise Application
6. Course Objective(s)
7. Course Outcome(s)
8. Program Outcomes (POs)
9. COs and POs Mapping

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 Index/Content
S. No. Index
10. Program Specific Outcomes (PSOs)
11. Cos and PSOs Mapping
12. Program Educational Objectives (PEOs)
13. Result Analysis
14. End Semester Question paper Templates
15. Prequisite/Recap
16. Brief Indtroduction about the Subject with Videos
17. Unit Contents
18. Unit Objectives
19. Topic Objectives/Topic Outcome

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 Index/Content
S. No. Index
20. Lecture related to topic
21. Daily Quiz
22. Weekly Assignment
23. Topic Links
24. MCQs
25. Glossary Questions
26. Old question papers
27. Expected Questions
28. Recap of unit

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 Evaluation Scheme

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 Subject Syllabus

Unit –I Employee Relations Management (ERM) & Industrial Relation:

Introduction and Importance of Employee Relations Management,
Employee Relations Management Tool, Aspects of Industrial Relations,
Emerging challenges of IR in India, Linking Industrial Relations with
economic growth of a country, Negotiations and Counselling.

Trade Unionism: Development of trade unionism, functions, type and

structure, problems & suggestive remedial measures of trade unions, The
Trade Unions Act 1926: Objective, Recognition and registration, Industrial
Democracy & Participative Management. Case Studies

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 Subject Syllabus

Unit –II Collective Bargaining: Significance, types & procedure of

Collective bargaining

• Discipline: The Industrial Employment (Standing Orders) Act 1961,

Misconduct, Disciplinary Action, Types of Punishments, Code of
Discipline, Domestic Enquiry, Grievance Handling in IR: Grievance
Settlement Procedure, Industrial Disputes, Preventive & Settlement
Machinery in India.

• Employee Participation and Empowerment: Objectives, Employee

Participation, Advantages of Employee Participation, Employee
Participation in India, Methods of Participation, Employee Empowerment.

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 Subject Syllabus

Unit –III

• The Factories Act, 1948 & The shop & Establishment Act, 1948; The
Payment of Wages Act, 1923; The Workmen’s compensation Act,
1972; The Industrial Disputes Act, 1947.

• Conflict management: Definition, Levels, Sources, Stages, Cause and

Effects of conflicts, Reactions and Responses towards conflict,
Conflict Resolution Process.

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 Subject Syllabus

Unit –IV

• The Factories Act, 1948 & The shop & Establishment Act, 1948; The
Payment of Wages Act, 1923; The Workmen’s compensation Act,
1972; The Industrial Disputes Act, 1947.

• Conflict management: Definition, Levels, Sources, Stages, Cause and

Effects of conflicts, Reactions and Responses towards conflict,
Conflict Resolution Process.

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 Subject Syllabus

Unit –V

• The payment of Bonus Act, 1965; The payment of Gratuity Act, 1972;
The Maternity Benefit Act, 1961; Employee’s Provident fund &
Miscellaneous Provisions Act, 1952.

• The Industrial Relations Code Bill, 2020; Code on Social Security

Bill, 2020 and the Occupational Safety, Health and Working
Conditions Code Bill, 2020.

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 Branch Wise Applications
Industrial relations managers and specialists prepare and distribute information
for management to be used during the collective bargaining process.
• Industrial relations managers are able to interpret and administer employees’
contracts regarding issues such as:
• Economics
• Healthcare benefits,
• Salaries or wages
• Work hours
• Fair employment practices
• Safety codes
• Union practices
• Pensions
• Grievances

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 Course Objective

1. To Provide conceptual framework of Industrial Relations .

2. To make students aware with the Indian Labour Legislation
3. To make students aware with the basic requirements and mandate
of Labour Legislations.
4. To help the students to understand the existing framework of
Industrial Relation and Labour Legislation.

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 Course Outcome
Course outcome: At the end of course, the student will be able
At the end
Knowledge of this course
of Industrial Relation students
frameworkwill
(CO1)able to :
K2(Understand)
Competency to understand the importance of
Employee Relation within the perspective of K4(Analyze)
Industrial Relation. (CO2)

Knowledge about relevant Laws of HR

management . (CO3) K3(Apply)

Competency to interpreted and implement the

Labour Laws within organization. (CO4) K5 (Evaluate)

Competency to use Collective Bargaining and

Grievance redressal Mechanism. (CO5) K3(Apply)

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 Program Outcomes

• PO1. Apply knowledge of management theories and practices to

solve business problems.
• PO2. Foster Analytical and critical thinking abilities for data-based
decision making.
• PO3. Ability to develop Value based Leadership ability.
• PO4. Ability to understand, analyze and communicate global,
economic, legal, and ethical aspects of business.
• PO5. Ability to lead themselves and others in the achievement of
organizational goals, contributing effectively to a team environment

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 CO-PO Mapping
PO/CO PO1 PO2 PO3 PO4 PO5
CO1 3 1 2 2 1
CO2 3 2 2 2 2

CO3 3 2 2 2 1

CO4 2 3 1 2 2
CO5 2 2 1 2 3

AVERAGE 2.6 2 1.6 2 1.8

**3= High *2= Medium *1=Low

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 Program Educational Objectives

 PEO1- Graduates of the management program will have conceptual

knowledge to adapt to the rapidly changing environment, learn new
skills and demonstrate application of management principles in
professional work setting.
 PEO 2- Graduates will apply appropriate tools for decision making
required for solving complex managerial problems in the local or
global context.
 PEO 3-Graduates of the Management program will exhibit integrity,
social responsibility, and teamwork.
 PEO 4-Graduates will exhibit ethics, communication skills,
leadership qualities and entrepreneurial mindset using creativity and
innovation.

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 Result Analysis (Batch 2020-22)

Subject Total No of
Name & No. Of No of
No of student
Code Stude Pass student
No of students No of
nts % students 65>75 90 & students Average
75>90
40>65 (%) (%) (%)
Above Backlog Marks
(%)

ER &LL 21 95 16 1 3 0 1 103
AMBAH
R0312

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 End Semester Question Paper Template

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Unit V
 End Semester Question Paper Template

Dr.Smita Singh AMBAHR 0312 ER&LL

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Unit V
 End Semester Question Paper Template

Dr.Smita Singh AMBAHR 0312 ER&LL

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Unit V
 Prerequisite

1.Knowledge of Human Resource Management.

2. Knowledge of Labour Laws I and II
3. Knowledge of Industrial Relations

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 Brief Introduction about the Subject

This subject aims to throw light on all the dimensions of industrial

relations and labour laws. It is organised into two parts: first part
focusing on the history and theory relating to the industrial relations
and the second part providing detailed on specific provisions of labour
laws being enforced in India. Labor and employment law concerns the
laws and regulations that govern relationships between employees and
employers. Labor law governs the relationships between groups of
employees, such as labor unions and their employers.

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 Subject Videos

https://www.youtube.com/watch?v=5_btNIdvEfo
https://www.youtube.com/watch?v=Lx83q3mW0oo
https://www.youtube.com/watch?v=uXuj-Kj6_wE

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 Unit Content

1. The payment of Bonus Act, 1965

2. The payment of Gratuity Act, 1972

3. The Maternity Benefit Act, 1961

4. Employee’s Provident fund & Miscellaneous Provisions Act, 1952.

5. Important Latest Bills-(The Industrial Relations Code Bill, 2020;

Code on Social Security Bill, 2020 and the Occupational Safety,
Health and Working Conditions Code Bill, 2020.)

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 Objective of the unit

 To understand various laws regarding The Payment of Bonus Act

1965
 To understand The provisions of Maternity Benefit Act ,1965 ,EPF
Act and Gratuity Act
 To understand the latest amendments on Labour Laws.

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 Noida Institute of Engineering and Technology, Greater Noida

The Payment of Bonus Act 1965

UNIT 5 Topic-1

Employee Relations and Labour Laws

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 Prerequisite

Knowledge of HRM/ Industrial Relations/ Compensation

Management .

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 Topic Objective
Topic Topic Objective
No.
1 To understand The Payment of Bonus Act,1965

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 Topic Mapping
S.No. Topic Course
Outcome
1 The Payment of Bonus Act 1965 CO5

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 Payment of Bonus Act 1965
 The payment of Bonus Act, 1965 aims at providing for the payment
of bonus to the employees of certain establishments, on the basis of
profits or production or productivity and for matters connected
therewith.
 The Act applies to every factory and every other establishment
employing not less than 20 persons on any day during an accounting
year. The Central/State Government can, however, extend its
provisions to any establishment employing less than 20 but more
than 10persons.
 The establishments covered under the Act shall continue to pay
bonus even if the number of employees falls below 10, at a later date

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 ELIGIBILITY

• Every employee (other than an apprentice) receiving salary or wages

up to Rs.21000 per month and engaged in any kind of work whether
skilled, unskilled, manual, managerial, supervisory, technical,
clerical , etc. is entitled to bonus for every accounting year, if he has
worked for at least 30 working days in that year.
• Employees of the general insurance companies, LIC, Central/State
Government establishments, Indian Red Cross Society, Universities
and Educational Institutions, Hospitals, Chambers of Commerce,
Reserve Bank of India, Industrial Finance Corporation of India, Unit
Trust of India , Social Welfare Institutions, Local Bodies, etc. are not
entitled to bonus under the Act. What they are paid as bonus, is ex-
gratia payment.

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 MINIMUM and MAXIMUM BONUS

• The minimum bonus which an employer is required to pay even if

he suffers losses during the accounting year or there is no allocable
surplus (except in case of new establishments), is 8.33% of the
salary or wages of the employee during the accounting year.
{Section 10}
• Maximum bonus of 20% of wages can be awarded.
• If in any accounting year, the allocable surplus exceeds the amount
of minimum bonus, the employer shall pay bonus in proportion to
the salary or wages earned by the employee during that accounting
year, subject to a maximum of 20% of such salary or wages.

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 TIME LIMIT FOR PAYMENT

• The bonus should be paid in cash within 8 months from the close of
the accounting year or
• Within one month from the date of enforcement of the award or
coming into operation of a settlement following an industrial dispute
regarding payment of bonus.( However if there is sufficient cause
extension may be applied for.)
• Bonus is payable only annually.

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 OFFENCES AND PENALTIES

• For contravention of the provisions of the Act or rules the penalty is

imprisonment up to 6 months, or fine up to Rs.1000, or both. For
failure to comply with the directions or requisitions made the
penalty is imprisonment up to 6 months, or fine up to Rs.1000, or
both.
• In case of offences by companies, firms, body corporate or
association of individuals, its director, partner or a principal officer
responsible for the conduct of its business, shall be deemed to be
guilty of that offence, unless the person concerned proves that the
offence was committed without his knowledge or that he exercised
all due diligence

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 MEANING OF STATUTORY BONUS

Statutory Bonus means bonus payable as per statute, i.e., the Payment
of Bonus Act. As per the Act, an amount equal to 8.33% of the Basic +
Dearness allowance paid to an employee who is eligible for bonus is to
be paid irrespective of availability of surplus or profit. Therefore,
8.33% is the statutory minimum bonus payable. However, depending
upon availability of profit, the employer shall pay bonus 20 subject to a
maximum of 20%.

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 MEANING OF AVAILABLE SURPLUS

 To calculate and pay the annual bonus as required under the Act.
 To maintain the following registers:
 Register showing the computation of allocate surplus in Form A,
 Register showing the amount of bonus due to the employees
 To co-operate with the Inspector, produce before him the
registers/records maintained, and such other information as may be
required by them.
 Right to refer any disputes relating to application or interpretation of
any provision of the Act, to the Labor Court or Labor Tribunal.
 Right to make permissible deduction from the bonus payable to an
employee, such as, festival bonus paid and financial loss caused by
the misconduct of the employee. Right to forfeit bonus of an
employee, who has been dismissed from service for fraud, riotous or
violent behavior, or theft, misappropriation or sabotage of any
property of the establishment.
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 Recap

• In this topic, We learned about provisions about Payment of

Bonus Act,1965.
• Also learned about Statutory Bonus, Available Surplus.

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 Daily Quiz
 Which of the following statements is not correct as per the Payment
of Bonus Act, 1965?
(a) It is applicable to construction industry.
(b) It does not apply to employees in Life Insurance Corporation of
India.
(c) Allocable surplus means 67% of the available surplus.
(d) Employee means any person including apprentice.
 The ceiling on wage or salary for calculation of Bonus under the
Payment of Bonus Act 1965 is
(a) Rs. 2,500
(b) Rs. 3,500
(c) Rs. 4,500
(d) Rs. 6,500

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Unit V
 Daily Quiz

 The Payment of Bonus Act, 1965 is applicable to an employee who

draws wage or salary of
(a) Rs. 3500 in case of apprentice
(b) Rs. 5000 in case of apprentice and employee
(c) Rs. 7500 in case of employee only
(d) Rs. 10,000 in case of employee only

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 Daily Quiz

 Payment of Bonus Act 1965 is applicable to every factory and to

every other establishment where ---------- workmen are employed on
any day during an accounting year
(a) 20 or more
(b) 10 or more
(c) 50 or more
(d) 30 or more

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 Noida Institute of Engineering and Technology, Greater Noida

The Payment of Gratuity Act, 1972

UNIT 5 Topic : 2

Employee Relations and Labour Laws

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 Prerequisite

• Basic knowledge of HRM

• Components of Compensation

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 Topic Objective
Topic Topic Objective
No.
1 The payment of Gratuity Act, 1972

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 Topic Mapping
S.No. Topic Course
Outcome
1 The payment of Gratuity Act, 1972 CO5

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 Payment of Gratuity Act, 1972

 Gratuity is an old age retiral

social security benefit.
 It is a lump sum payment
made by an employer to an
employee in consideration of
his past service when the
employment is terminated.
 In the case of employment
coming to an end due to
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retirement or superannuation Unit V
 When is Gratuity Payable

 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:-
 (i) on his superannuation; or
 (ii) on his retirement or resignation;
 or (iii) on his death or disablement due to accident or disease.

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 Applicability of Gratuity

• The Payment of Gratuity Act provides for the payment of gratuity to

employees engaged in factories, mines, oilfields, plantations, ports,
railway companies, shops or other establishments.
• Recently the Act has been amended twice to enhance the ceiling on
amount of gratuity from Rs.3.50 lakh to Rs.10 lakh
• These amendments have been introduced by the Payment of Gratuity
(Amendment) Act, 2010 with effect from May 24,2010.

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 Application of the Act

 Firstly, he should be employed in an establishment to which the Act

applies.
 Secondly, he should be an “employee” as defined in Section 2(e).

• (a) every factory, mine, oilfield, plantation, port and railway company.
• (b) every shop or establishment within the meaning of any law.

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 Continuous Service
• An employee shall be said to be in ‘continuous service’ for a period
• if he has, for that period been in uninterrupted service, including service
which may be interrupted on account of sickness, accident, leave,
absence from duty without leave.
• (2) Where an employee is not in continuous service within the meaning
of clause (1) for the period of one year or six months, he shall be
deemed to be in continuous service under the employer

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 Period of six months

(i) Ninety five days, in the case of an employee employed below the
ground in a mine or in an establishment which works for less than six days
in a week; and
(Ii) one hundred and twenty days in any other case.

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 Gratuity Calculation

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 WHEN IS GRATUITY PAYABLE?
• 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.

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 To whom Gratuity is Payable

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 Forfeiture of Gratuity
•

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 Rights and obligations of the employer
• The employer shall determine the amount of gratuity and give notice in
writing to the person to whom the gratuity is payable and also to the
Controlling Authority, specifying the amount of gratuity so determined.
• The employer shall arrange to pay the amount of gratuity within thirty
days from the date of its becoming payable.

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 Rights and obligations of the employer
• If the amount of gratuity payable is not paid by the employer , simple
interest at the rate of 10 per cent per annum is charged.
• No such interest shall be payable if the delay in the payment is due to
the fault of the employee and the employer has obtained permission in
writing from the controlling authority for the delayed payment on this
ground.

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 Recovery of Gratuity
 Section 8 provides that if the gratuity payable under the Act is not paid
by the employer within the prescribed time-
 Controlling Authority shall, issue a certificate for that amount to the
Collector, who shall recover the same together with the compound
interest thereon at such rate as the Central Government may be
notification, specify.
 The controlling authority shall, before issuing a certificate under this
section, give the employer a reasonable opportunity of showing cause
against the issue of such.

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 Recap

• In this topic, We learnt about the important provisions mentioned

under the Payment of Gratuity Act.

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 Daily Quiz
 The eligibility condition for obtaining gratuity under the Payment of
Gratuity Act, 1972 is
(a) Completion of 2 years of Service
(b) Completion of 3 years of Service
(c) Completion of 4 years of Service
(d) Completion of 5 years of Service
 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
-------- days’ wages based on the rate of wages last drawn by the
employee concerned
(a) 25 days
(b) 15 days
(c) 30 days
(d) 7 days
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 Daily Quiz
 Under the Payment of Gratuity Act, 1972 the maximum gratuity payable
is
(a) Rs. 10 lakhs
(b) Rs. 8 lakhs
(c) Rs. 5 lakhs
(d) Rs. 3.5 lakhs
 What is the qualifying service to claim gratuity?
(a) 15 years
(b) 10 years
(c) 5 years
(d) No such prescription

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 Noida Institute of Engineering and Technology, Greater Noida

The Maternity Benefit Act, 1961

UNIT 5 Topic 3

Employee Relations and Labour laws

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 Prerequisite

• Basic knowledge of HRM

• Labour Law I and II

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 Topic Objective
Topic Topic Objective
No.
1 To study the Maternity benefit Act, 1948

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 Topic Mapping
S.No. Topic Course
Outcome
1 The Maternity Benefit Act CO4

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 INTRODUCTION

 Maternity Benefit Act,1961

Extend: whole of India
(including J&K from 1970).
Total sections: 30 sections.
This act is enacted on the basis
of article 39(e) & (f) of
constitution: “State shall, in
particular, direct its policy
towards securing the health &
strength of workers, men and
& women”.

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Unit V
 OBJECTIVE

• It aims to regulate the

employment of women in
certain periods before and after
childbirth .
• To provide for maternity
benefits including maternity
leave ,wages , bonus , nursing
breaks etc.
• To protect the dignity of
motherhood and the dignity of
a new person by providing for
full and healthy maintenance
of the women and her child at
this important time when she is
not working.
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Unit V
 Applicability of the Maternity Act

The Act extends to whole of India.

Every establishment being a factory, mine or plantation

in which 10 or more persons are or were employed on
any day of the preceding (12) twelve months.

The Central Industrial Relations Machinery (CIRM) in the

Ministry of Labour is responsible for enforcing this Act.

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 Duties of Employee for Maternity Benefits

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 Maternity Benefit Act Amendment 2017

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 CASH BENEFITS

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 NON CASH BENEFITS

No discharge or dismissal when on

maternity leave

Light work for 10 weeks before

delivery.

No Charge to be made on her in any

of the conditions to her Job while on
ML

Two Nursing Breaks until the child

will became the (15) fifteen months
old.

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 NON CASH BENEFITS

No deduction from the Normal and

Usual daily wages of a woman entitled
to Maternity Benefit under the
provisions of this Act.

Every establishment having 50 or

more employees shall have the
facility of crèche.

Employer shall allow 4 visit a day to

the crèche by the women including
rest interval.

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 LEGAL OBLIGATION UNDER THIS ACT
 No employer shall knowingly employ a women in establishment
during 6 weeks following date of her delivery or miscarriage.
 No women shall work in any establishment during the during the 6
weeks immediately the day following her delivery.
 It shall be unlawful for her employer to discharge or dismiss her on
account of such misconduct.
 In case of Gross misconduct, the employee in writing can
communicate about depriving such benefit.
 Writing 60 days from the day of deprivation Of maternity benefit ,
any women can appeal to the authority prescribed by law.

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 Rights, Duty & Penalty of Employer

Forfeiture
Abstract Penalty for
of Records
of Act contravention
Maternity Management of Act
and rules
Benefit

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 Recap

•In this topic ,we learned about Maternity Benefit Act 1961.

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 Daily Quiz
 As per Maternity Benefit Act, t he maximum period for which any woman
shall be entitled to maternity benefit shall be
(A) twenty six weeks
(B) twelve weeks
(C) four months
(D) sixteen weeks

 The condition of 80 days of employment in the 12 months immediately

preceding the date of benefit has been made an eligibility condition for
getting

(A) Maternity Benefit under the Maternity Benefit Act

(B) Disablement benefit under the ESI Act
(C) Gratuity under the Payment of Gratuity Act
(D) Sickness benefit under the ESI Act

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 Daily Quiz
 No contribution is required for getting benefit under which of the
following legislations?
(A) Maternity Benefit Act
(B) Employees’ Compensation Act
(C) Both under (A) & (B)
(D) None of the above
 Till what age of the child will a mother get 2 nursing breaks in the course
of her daily work?

(A)12 months
(B) 6 months
(C)18 months
(D)15 months

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 Noida Institute of Engineering and Technology, Greater Noida

Employee’s Provident fund & Miscellaneous

Provisions Act, 1952.

UNIT 5Topic -4

Employee Relations and Labour laws

Dr.Smita Singh AMBAHR 0312 ER&LL Unit V

78
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 Prerequisite

• Knowledge of basic HRM

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 Topic Objective
Topic Topic Objective
No.
1 To study about Employee’s Provident fund & Miscellaneous
Provisions Act, 1952.

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 Topic Mapping
S.No. Topic Course
Outcome
1 Employee’s Provident fund & Miscellaneous CO5
Provisions Act, 1952.

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 Introduction to the EPF Act ,1952

• Salary consists of two parts i.e.

earnings & deductions
Provident Fund is one of the
statutory deduction done by
the employer at the time of
salary payment Provident Fund
is governed by the Employee’s
Provident Fund Act 1952

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Unit V
 The Employee’s Provident Fund Act 1952
Objective
• To give better future to
employees on their retirement
& his dependents in case of his
death during employment
• Compulsory contributory
fund for the future of an
employee after retirement or
for his dependents in case of
his early death
• Applicable to all states of
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Unit V
India except Jammu and
 The Employee’s Provident Fund Act 1952
Eligibility & Entitlement

• Irrespective of permanent / probationary employees, all employees

are eligible for joining the PF scheme from the date of joining the
service
• The administration and management of Employees’ Provident Fund
(EPF) is carried out by the Central Board of Trustees (CBT)
established by the Central Government consisting of representatives
of the Government, employers and employees respectively.

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 The Employee’s Provident Fund Act 1952
Eligibility & Entitlement

• The Employees’ Provident Fund Organization (EPFO) assists this

Board in its activities.
• The Act is applicable to every factory or industry mentioned in
Schedule 1 of the Act, wherein 20 or more persons are employed or
to any other establishment which the Central Government specifies
by notification in the official Gazette, even when the number of
employees is less than 20.

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 The Employee’s Provident Fund Act 1952
Eligibility & Entitlement

• It is mandatory for salaried employees with an income of less than

Rs.15,000 per month to register for an EPF account.
• Employees who earn more than Rs.15,000 can also register for an
EPF account; however, they must get approval from the Assistant PF
Commissioner.
• All EPF subscribers have online access to their PF accounts and can
execute operations such as withdrawal and checking their EPF
balance. The Universal Account Number (UAN) simplifies access
to the EPFO member portal.

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 Components of EPF Act 1952

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 Benefits

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 EPF Interest Rate

 Currently, PF interest rate is

8.50%.
 This amount is added to the
employer and employee
contributions at the end of the
year to find the total balance in
the account.

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Unit V
 Structure of EPFO

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 The Employees Pension Scheme
1995

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 Employees Deposit Linked Insurance
Scheme
EDLI applies to all employees with a basic salary under Rs. 15,000/-
per month.

There is no need for the employees to contribute to EDLI. Their

contribution is required only for EPF.

There is a bonus of Rs. 1,50,000/- available under the EDLI. With

effect from 28.04.2021, the bonus is increased to Rs.2.5 lakh.

Any organization that has more than 20 employees needs to

register
04/29/2025
for EPF. Therefore, any AMBAHR
Dr.Smita Singh
employee
0312 ER&LL
who
Unit V
has an EPF account92
 The Employees Deposit-Linked Insurance
Scheme 1976 (EDLI)

• EDLI scheme is compulsory for all the existing members who

become members of the PF Scheme .
• Life insurance benefit (death coverage) of the employee is available
under this scheme while in service Calculation
• EDLI is calculated on EDLI slab – Rs. 6500/.
• 0.50% EDLI calculated on total EDLI slab (Rs. 6500) wages and
transferred to EDLI fund .
• 0.01% Administration charges calculated on total EDLI wages
• EDLI / administration charges are payable by the employer

04/29/2025 Dr.Smita Singh AMBAHR 0312 ER&LL Unit V 93

 Calculation of EPF

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 Daily Quiz
 Minimum ……….. persons must be employed in as establishment for the
applicability of the PF act.
A. 15
B. 20
C. 35
D. 50

The term contribution is defined in the section ………

A. Section 2-bb
B. Section 2-bc
C. Section 2-cc
D. Section 2-c

04/29/2025 Dr.Smita Singh AMBAHR 0312 ER&LL Unit V 95

 Daily Quiz
 Can an agent, of the owner of a factory, be termed as an
employer?
A. Yes
B. No
 Can an agent, of the owner of a factory, be termed as an
employer?
A. Yes
B. No
 The chairman and members of Central Board constituted
under Employees Provident Fund are appointed by
A. Supreme Court B. State Government C. Central Government
D. None of the above

04/29/2025 Dr.Smita Singh AMBAHR 0312 ER&LL Unit V 96

 Recap

• In this topic, We learned about Employee’s Provident fund &

Miscellaneous Provisions Act, 1952.

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 Noida Institute of Engineering and Technology, Greater Noida

Important Bills 2020

UNIT 5 Topic -5

Employee Relations and Labour laws

Dr.Smita Singh AMBAHR 0312 ER&LL Unit V

98
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 Prerequisite

• Knowledge of Labour Law I,II and III

• Knowledge of basic HRM

04/29/2025 Dr.Smita Singh AMBAHR 0312 ER&LL Unit V 99

 Topic Objective
Topic Topic Objective
No.
1 To study about The Industrial Relations Code Bill, 2020; Code on
Social Security Bill, 2020 and the Occupational Safety,
Health and Working Conditions Code Bill, 2020.

04/29/2025 Dr.Smita Singh AMBAHR 0312 ER&LL Unit V 100

 Topic Mapping
S.No. Topic Course
Outcome
1 The Industrial Relations Code Bill, 2020; Code on CO3, CO4
Social Security Bill, 2020 and the Occupational
Safety,
Health and Working Conditions Code Bill, 2020.

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 The Industrial Relations Code Bill, 2020
• The Industrial Relations Code, 2020 provides a broader framework to
protect the rights of workers to make unions, to reduce the friction
between the employers, and workers and to provide regulations for
settlement of industrial disputes.
• The Code is prepared after amalgamating, simplifying and repealing
following 3 central labour Acts:
• The Trade Unions Act, 1926
• The Industrial Employment (Standing Orders) Act, 1946
• The Industrial Disputes Act, 1947

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 SCOPE & APPLICABILITY
• The Code is designed to consolidate & amend the laws regarding Trade
Unions, conditions of employment in Industrial establishment or
undertaking, and sleek settlement of industrial disputes. The code
regulates the subsequent areas:
o Registration of Trade Union
o Cancellation of Trade Union
o Alteration of Name of Trade Union
o Formation of Work Committee
o Incorporation of a Registered Trade Union

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 OBJECTIVE
o The Code designated to safeguard the rights of employers and
employees by providing easy labour reforms and to facilitate ease of
Doing Business.
o The object of the Code is to realize industrial peace and harmony as the
ultimate pursuit in resolving industrial disputes and to advance the
progress of industry by bringing about the existence of harmony and
cordial relationship between the employers and workers.

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 Salient Features of the Industrial Relations
Code, 2020
• NDUSTRIAL DISPUTES
• TRADE UNION
• STANDING ORDERS

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 Efforts of the Government in Industrial
Relations Code Bill, 2020

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 Efforts of the Government in Industrial
Relations Code Bill, 2020

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 Code on Social Security, 2020
o Code on Social Security, 2020 was initiated in the Lok Sabha on 19th
September 2020 vide Bill No. 121 of 2020 to propose a fresh Bill,
namely, the Code on Social Security, 2020.
o This new code is expected to amend and combine the laws relating to
social security for all the employees either in the organized or
unorganized sector.

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 Report of Second National Commission on
Labour
o The Report of Second National Commission on Labour recommended
that the existing set of labour laws will merged into the following
groups-
o Welfare and working conditions;
o Wages;
o Social security;
o Safety;
o Industrial relations.

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 List of the Repealed Acts
 The Unorganized Workers Social Security Act, 2008.
 The Payment of Gratuity Act, 1972[1];
 The Maternity Benefit Act, 1961;
 The Employment Exchanges (Compulsory Notification of Vacancies) Act,
1959;
 The Employees State Insurance Act, 1948;
 The Employees Provident Funds and Miscellaneous Provisions Act, 1952;
 The Employees Compensation Act, 1923;
 The Cine-Workers Welfare Fund Act, 1981;
 The Building and Other Construction Workers’ Welfare Cess Act, 1996.
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 The salient features of the Code on Social
Security, 2020
o Social security funds for unorganized workers, gig workers, and
platform workers, with state governments setting up separate social
security funds for unorganized workers.
o Any aggregator may set aside funds between 1-2% of the annual
turnover as decided by govt for such social security funds - not
exceeding 5%
o The definition of employees expanded to include more workers like -
inter-state migrant workers, platform workers, film industry workers,
and construction workers.

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 The salient features of the Code on Social
Security, 2020
o The gratuity period for working journalists reduced from five to three
years.
o The penalty for unlawfully deducting the employer’s contribution from
the employee’s wages is only Rs 50,000 fine with no imprisonment.
o The central government may defer or reduce the employer’s or
employee’s contributions (under PF and ESI) for a period of up to three
months in the case of a pandemic, endemic, or national disaster.

04/29/2025 Dr.Smita Singh AMBAHR 0312 ER&LL Unit V 114

 The Occupational Safety, Health and Working
Conditions Code, 2020
• The Occupational Safety, Health and Working Conditions Code, 2020
amalgamates over 10 labor laws to consolidate into one comprehensive
act.
• It was passed by the Indian parliament and received the president’s
assent in September 2020.
• Rules to implement the Code are expected to be finalized in the next few
weeks.

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 The Occupational Safety, Health and Working
Conditions Code, 2020

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 The Occupational Safety, Health and Working
Conditions Code, 2020
• Every employer is directed to undertake the following obligations by the
OSH Code:
• Ensure that the workplace is free from hazards can cause injury or
occupational disease to the employees and comply with the OSH Code
and the government’s directions on the same;
• Provide free annual health examination or testing, free of cost, to certain
classes of employees;
• Provide and maintain, as reasonably practical, a working environment
that is safe and without risk to the health of the employees;

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 Duties of Employees
 Report ant unsafe or unhealthy comes to their attention, as soon as is
practical to the employer
 Not willfully interfere with or misuse or neglect any appliance,
convenience
 Not do anything, willfully and without reasonable cause, to endanger or
potentially endanger themself or others; and
 Perform such other duties as may be prescribed by the appropriate
government.

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 Daily Quiz
 Fill in the blanks:
 The OCH code 2020 expands the definition of a factory as a premise where
at least 20 workers work for a process with power and 40 workers for a
process without power.
 It also empowers women to be employed in all kinds of establishments and
at night between 7 PM - 6 AM subject to their consent and safety.
 The 2020 Bill states that the central government will set up such a fund
called the social security fund.
 The 2020 Bill reduces the gratuity period from five years to three years
for working journalists.
 Women engaged in the unorganized sector remain outside the purview of
maternity benefit.
 The Occupational Safety, Health and Working Conditions Code, 2020
amalgamates over 10 labor laws to consolidate into one comprehensive act.
 The amount collected from certain penalties under the Code (including the
amount collected through compounding) will be credited to the
Fund.Which bill has this provision?
04/29/2025 Dr.Smita Singh AMBAHR 0312 ER&LL Unit V 120
 Weekly Assignment

Q.1. Explain the provisions of Gratuity Act, 1972.

Q.2. Explain the provisions of employers and employees contribution
in EPF.
Q.3. What are the provisions of Social Security Bill 2020.

04/29/2025 Dr.Smita Singh AMBAHR 0312 ER&LL Unit V 121

 Topic Links

https://www.youtube.com/watch?v=drwz6kdCpK0
https://www.youtube.com/watch?v=JBXnFBtbkKA
https://www.youtube.com/watch?v=UMROkdHayIQ
https://www.epfindia.gov.in/site_docs/PDFs/Downloads_PDFs/EPFSch
eme.pdf

https://labour.gov.in/sites/default/files/Rules-1972.pdf

04/29/2025 Dr.Smita Singh AMBAHR 0312 ER&LL Unit V 122

 MCQs
 The maximum amount of gratuity has now been enhanced to Rs. 10
lakhs from
a) 2.5 lakhs
b) 3.5 lakhs
c) 5 lakhs
d) 7.5 lakhs
 The formula for calculating gratuity is
a) Gratuity = (Monthly Salary/25) X 15 X No. of years of service
b) Gratuity = (Monthly Salary/30) X 15 X No. of years of service
c) Gratuity = (Monthly Salary/26) X 15 X No. of years of service
d) Gratuity = (Monthly Salary/15) X 15 X No. of years of service

04/29/2025 Dr.Smita Singh AMBAHR 0312 ER&LL Unit V 123

 MCQs
 Under the Payment of Gratuity Act, 1972 the maximum gratuity
payable is
a) Rs. 10 lakhs
b) Rs. 8 lakhs
c) Rs. 5 lakhs
d) Rs. 3.5 lakhs
 What is the qualifying service to claim gratuity?
a) 15 years
b) 10 years
c) 5 years
d) No such prescription

04/29/2025 Dr.Smita Singh AMBAHR 0312 ER&LL Unit V 124

 MCQs
 Under EPF act, “Insurance Fund” means ……………
a) Medical Insurance Fund
b) Deposit Linked Insurance Scheme
c) Unit Linked Insurance Plan
d) Employees’ Group Accident Insurance

 The Act is applicable to every establishment which is a factory

engaged in any industry specified in Schedule I and in which
____________persons are employed
a) 20
b) 10 or more
c) 20 or more
d) 15 or more

04/29/2025 Dr.Smita Singh AMBAHR 0312 ER&LL Unit V 125

 MCQs
 The scheme defined under section 2(i-b) of the PF Act, 1952 is
……………..
A. Pension Scheme
B. Provident Fund Scheme
C. Family Pension Scheme
D. Insurance Scheme
 The chairman and members of Central Board constituted under
Employees Provident Fund are appointed by
A. Supreme Court
B. State Government
C. Central Government
D. None of the above

04/29/2025 Dr.Smita Singh AMBAHR 0312 ER&LL Unit V 126

 Glossary Questions

12% 5 15 10 EPF
Act ,1952

• Payment of Bonus Act 1965 is applicable to every factory and to

every other establishment where ---------- workmen are employed on
any day during an accounting year.
• Continuous service means continuous service of ____ years under
gratuity act .
• Contribution of employee under EPF act 1952 is ____
• The gratuity Act provides for payment of gratuity at the rate of ___
days wage s for each completed year of service
• ____ is an old age retirement social security benefit.

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Unit V
 Old Question Papers

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 Old Question Papers

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 Previous Sessional I Paper

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 Previous Sessional I Paper

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 Previous Sessional I Paper

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 Previous Sessional II Paper

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 Previous Sessional II Paper

04/29/2025 Dr.Smita Singh AMBAHR 0312 ER&LL Unit V 134

 Expected Questions for University Exam

 Discuss the important provisions of Payment of Gratuity Act.

 Discuss the provisions of The Industrial Relations Code Bill, 2020;
Code on Social Security Bill, 2020
 Discuss the benefits under Employee Provident Fund Act,1952.

04/29/2025 Dr.Smita Singh AMBAHR 0312 ER&LL Unit V 135

 Recap of the Unit
• This topic tells us about that important provisions of EPF Act
1952 ,gratuity act and also the important provisions of new bills like
The Industrial Relations Code Bill, 2020; Code on Social Security
Bill, 2020 and the Occupational Safety, Health and Working
Conditions Code Bill, 2020.

04/29/2025 Dr.Smita Singh AMBAHR 0312 ER&LL Unit V 136

 References
1.Srivastava SC - Industrial Relations and Labour Laws (Vikas, 2020, 7th
Edition.)
2.Taxmann Labour Laws”, Taxmann Allied Services Pvt. Ltd.,2019
Monappa Arun, “Industrial Relations and Labor laws”, Tata McGraw Hill
Edition, New Delhi, 2E Edition, 2012.

Thank You
3. Industrial Relations, Chaganti Satya Venkata Ratnam, Manoranjan Dhal,
2017.
4. Mamoria, Mamoria and Gankar, “Dynamics of Industrial Relations”,
Himalaya Publishing House, New Delhi, 2016.
5. D. P Sahoo: Employee Relations Management - Texts and Cases (Sage
Publication) 2020
04/29/2025 Dr.Smita Singh AMBAHR 0312 ER&LL Unit V 137