FACTORIES ACT AS AMENDED BY MAHARASHTRA GOVERNMENT

Posted by & filed under Factory Act.

Amendments taken place under Maharashtra Factories Act on 2.12.2015 are enforced by Govt. of Maharashtra w.e.f. 1st Feb., 2016 as per Notification dated 1.2.2016 hence earlier effective date of amendments as 2.12.2015 now stands cancelled. Following are amendments in nutshell.

The respective changes have been enclosed here.

FACTORIES-ACT-AS-AMENDED-BY-MAHARASHTRA-GOVERNMENT

Particulars Prior to Amendment Post Amendment Remarks
Section 2(m) definition of term ‘Factory’ Term ‘Factory’ has been defined to mean premises where:

  1. manufacturing process is carried on with the aid of power and 10 or more workers work on any day in the preceding 12 months; or
  2. manufacturing process is carried on without the aid of power and 20 or more workers work on any day in the preceding 12 months;
 Factory means premises where:

  1. where manufacturing process is carried on with the aid of power and 10 or more workers or such number of workers as may be specified by the State Government by notification, from time to time work on any day in the preceding 12 months; or

    Provided that the number of workers to be specified by State Government shall not exceed 20 workers.

  2. where manufacturing process is carried on without the aid of power and 20 or more workers or such number of workers as may be specified by the State Government by notification, from time to timework on any day in the preceding 12 months;

    Provided that the number of workers to be specified by State Government shall not exceed 40 workers.

 Pursuant to this amendment, the State Government is empowered to classify any premises as ‘Factory’ even when:

  1. the manufacturing is with the aid of power and less than 10 workers are working therein; or
  2. the manufacturing is  without the aid of power and less than 20 workers are working therein.

Conversely, pursuant to this amendment, the State Government is also empowered, to issue a notification, and thereby not classify any premises as ‘Factory’ even if:

  1. the manufacturing is with the aid of power and 19 or less workers are working therein; or
  2. the manufacturing is without the aid of power and 39 or less workers are working therein.
Section 65(2) (Power to make exempting orders) The State Government or the Chief Inspector were empowered to exempt any or all adult workers of any factory or group/class of factories  from compliance of any or all Sections 51(Weekly hours), 52 (Weekly holidays), 54(Daily hours), 56(Spread over).

This exemption was made available to enable the factory or factories to deal with an exceptional press of work.

For this purpose, the State Government or the Chief Inspector had to pass a written order stipulating the conditions for exemption.

 In order to deal with exceptional press of work, any or all adult workers of the factories shall be exempted from compliance of any or all Sections 51(Weekly hours), 52 (Weekly holidays), 54(Daily hours), 56(Spread over).

The terms and conditions for aforesaid exemption shall be prescribed in the rules.

 Pursuant to this amendment, the terms and conditions for availing exemption from compliance under Sections 51(Weekly hours), 52 (Weekly holidays), 54(Daily hours), 56(Spread over)would be prescribed under Maharashtra Factories Rules, 1963.

Thus the need to approach authorities under the Principal Act for exemptions has been done away and instead the terms and conditions for the exemption will be prescribed in the rules.

Note: At present the rules for the exemption have not been notified. Once the State Government notifies the rules, it would become clear as to when and under what circumstances the factory would be exempted from compliance with aforesaid provisions of Principal Act.  
Section 65(3)(iv) (Power to make exempting orders) The exemption granted under Section 65(2) is subject to certain conditions set out in Section 65(3). One of the conditions is that no worker shall work overtime for more than 7 days at a stretch and the total overtime hours shall not exceed 75 hours in any quarter. The limit of overtime hours has been increased from 75 hours to 115 hours per quarter. The overall exemption/relaxation with respect to overtime hours that a factory can avail for dealing with exceptional press of work shall not exceed 115 hours per quarter.
Section 66(1)(b) proviso (Further restrictions on employment of women) Section 66(1) amongst others restricted women employees to work in any factory except between the hours of 6 A.M. to 7 P.M.

However, the State Government may, by a notification in the Official Gazette, vary these limits to the extent that no woman shall be employed in factory between the hours of 10 a.m. to 5 p.m.

 The women workers are now allowed to work even between 7:00 p.m. and 6:00 a.m. in any factory in which prescribed adequate safety and security measures or safeguards are provided. Women workers are now allowed to work in night shift provided the prescribed rules as to their safety and safeguards is adequately provided.

Note: At present the rules for adequate safety and safeguard of women employees have not been provided in the Maharashtra Factories Rules 1963.
Section 79(1) (Annual leave with wages) In order to be eligible for leave with wages, every worker was required to work in a factory for 240 days or more during a calendar year. The requirement of working 240 days has now been reduced to 90 days.

Similar change has been incorporated inExplanation 1 which deals with computation of the period of 240 days.

 Now workers will become eligible for leaves with wages in the subsequent year if they work for 90 or more days in a calendar year.
Section 85(1)(i) (Power to apply the act to certain premises) Pursuant to this section the State Government may notify applicability of any or all provisions of the Principal Act on any premises where manufacturing process is carried on:

  1. with aid of power and employing less than 10 workers;
  2. without the aid of power and employing less than 20 workers.
 The State Government may notify applicability of any or all provisions of the Principal Act on any premises where manufacturing process is carried on:

  1. with aid of power and employing less than 10 workers or such number of workers as may be specified by the State Government under Section 2(m)(i);
  2. without the aid of power and employing less than 20 workers or such number of workers as may be specified by the State Government under Section 2(m)(ii).
 This amendment is in lines with the amendment carried out in the definition of the term ‘Factory’ under Section 2(m) of the Principal Act.
Section 92A (Compounding of certain offences) and Fourth Schedule – A new Section has been introduced pursuant to which offences set out in the Fourth Schedule (new schedule) may be compounded before the institution of prosecution.

The offences shall be compounded by an officer not below the rank of Deputy Chief Inspector.

The amount of fine shall not be more than Rupees one lakh as mentioned in Section 92 of the Principal Act.

Once the offence set out in the Fourth Schedule is compounded no further proceedings shall be taken against the offender in respect of the offence.

 The Fourth Schedule sets out 33 non-compliances under the Principal Act which can be compounded prior to initiation of the prosecution.
Section 105 (1) (Cognizance of offences) Court will take cognizance of any offence upon complaint by or written sanction of an Inspector. Court will take cognizance of any offence upon complaint by or written sanction of a Chief Inspector. The process of investigation into any offence under the Principal Act and subsequent prosecution for the same can start only upon complaint made/sanction given by Chief Inspector of Factories.


Post Views: 3,614

Interest on provident fund deposits likely to increase to 9% on February 16

Posted by & filed under Provident Fund Benefits.

Retirement fund body Employees’ Provident Fund Organisation​ (EPFO) may announce 9% interest rate on provident fund (PF) deposits for 2015-16 in its trustees’ meet on February 16, higher than 8.75% provided in previous two financial years
Retirement fund body Employees’ Provident Fund Organisation​ (EPFO) may announce 9% interest rate on provident fund (PF) deposits for 2015-16 in its trustees’ meet on February 16, higher than 8.75% provided in previous two financial years.
“The 211th meeting of the Central Board of Trustees (CBT) has been scheduled to be held on February 16, 2016 in Chennai,” an EPFO circular stated.
According to the circular, the issues to be placed for consideration of the CBT include rate of interest to be credited to EPFO members’ account for the year 2015-16, cadre restructuring of the body and annual accounts in respect of EPF Scheme 1952, EPS 1995 and EDLI Scheme 1976 for the year 2014-15.

Earlier, the EPFO’s advisory body had recommended 8.95% rate of interest for the current fiscal which is higher than 8.75 per cent provided in 2013-14 and 2015-16.
According to EPFO income projections worked out in September, providing 9% interest on PF will result in a deficit of Rs 100 crore.
9% rate of interest on PF deposits when EPFO will work out the latest estimates. FAIC can change its recommendation in the next meeting and suggest 9% interest rate for 2015-16,” a CBT and FAIC member P J Banasure had said.

The proposal has to be endorsed by the Central Board of Trustees (CBT) before the Finance Ministry notifies it.
However, there has been indications from the Finance Ministry that it will slash interest rate on small savings like public provident fund in view of the rate cut by Reserve Bank of India.
The EPFO provides rate of interest from the earning on investments of formal sector workers’ funds without any assistance from the government
Thus, the workers’ representative are of the view that if there is no deficit on providing 9 per cent rate of interest for the current fiscal, then government should not have any issue with it.

Necessary Circular is appended below
CBT Meeting Circular in regards to Interest Rate 2015-2016

@Courtesy http://www.dnaindia.com/money


Post Views: 1,046

Implementation of ESI Scheme in Peripheral areas of Karnataka W.E.F 1st Jan 2016

Posted by & filed under Esic-Circulars.

Dear all,

In exercise of the powers conferred by sub-section (3) of Section 1 of the Employees’ State Insurance Act, 1948 (34 of 1948) the Central Government hereby appoints the 1st January, 2016 as the date on which the provisions of Chapter IV (except Sections 44 and 45 which have already been brought into force) and Chapter-V and VI (except Sub-Section (1) of Section 76 and Sections 77, 78, 79 and 81 which have already been brought into force) of the said Act shall come into force in the following areas in the State of Karnataka Srirangapatna Taluk of Mandy a district.

Respective Circular Enclosed for your Kind Perusal.

Post Views: 850

Implementation of ESI Scheme in new geographical areas of revenue in Andhra Pradesh W,E,F 1st Jan 2016

Posted by & filed under Esic-Circulars.

Dear all,

In exercise of the powers conferred by sub-section (3) of Section 1 of the Employees’ State Insurance Act, 1948 (34 of 1948) the Central Government hereby appoints the 1st January, 2016, as the date on which the provisions of Chapter IV (except Sections 44 and 45 which have already been brought into force) and Chapter-V and VI (except Sub-Section (1) of Section 76 and Sections 77, 78, 79 and 81 which have already been brought into force) of the said Act shall come into force in the following areas in the State of Andhra Pradesh in new geographical areas of revenue Village Amalapuram and its surrounding areas in Guntur District.

Respective circular enclosed  for your kind perusal.

Post Views: 808

implementation of ESI Scheme in new geographical areas of Andaman from 1st January, 2016

Posted by & filed under Esic-Circulars.

Dear all,

In exercise of the powers conferred by sub-section (3) of Section 1 of the Employees’ State Insurance Act, 1948 (34 of 1948) the Central Government hereby appoints the 1st January, 2016 as the date on which the provisions of Chapter IV (except Sections 44 and 45 which have already been brought into force) and Chapter-V and VI (except SUb-Section (1) of Section 76 and Sections 77,78,79 and 81 which have already been brought into force) of the said Act shall come into force in the following areas in UT of Andaman & Nicobar 

Pls refer to the respective notification of the same 
Post Views: 991

Implementation of ESI Scheme in Punjab. in some distrct W.E.F from 1st Jan 2016

Posted by & filed under Esic-Circulars.

In exercise of the powers conferred by sub-section (3) of Section 1 of the Employees’ State Insurance Act, 1948 (34 of 1948) the Central Government hereby appoints the 1st January, 2016 as the date on which the provisions of Chapter IV (except Sections 44 and 45 which have already been brought into force) and Chapter-V and VI (except Sub-Section (1) of Section 76 and Sections 77, 78, 79 and 81 which have already been brought into force) of the said Act shall come into force in the following areas in the State of Punjab

Respective Notification as enclosed

mplementation of ESI Scheme in Punjab

Post Views: 1,140

Draft Model Shops and Establishments (Regulation of Employment and Conditions of Services) Act 2015- High lights

Posted by & filed under Central Shop & Establishment.

The Shops and Establishment Act is a state legislation enacted by various states
which regulates operation of shops and establishment in that state. The Act is
applicable to non-hazardous manufacturing units employing less than 10 workers. The existing law regulates opening and closing time of establishment, Attendance and payment of Wages, Holidays and Leaves, Conditions of Employment, and includes provisions for Health, Safety and Welfare. The Government has been receiving suggestions from time to time to enact a model central law which the states could consider for enforcement either by adopting the central law or making necessary modifications by amending the state laws.

It has been represented to the central government that the enforcement of the
state Shops and Establishment Act by various states has brought about the following inadequacies that have affected the ease of doing business by the shops and establishments covered under the Act:-

1. Rigidity in Opening And Closing of establishments.
2. Discourages Women in employment.
3. Difficulties in Registration & Annual Renewal.
4. Problems in Maintenance of Statutory Records.
5. Arbitrariness in Statutory Inspections.

3.1. The present proposal, inter-alia, provides for the following:

1. A Model Shops and Establishment Act to be formulated by the Union
Government, on the pattern of which states will modify their individual Act.

2. Covers only establishments employing ten or more workers except
manufacturing units

3. Freedom to operate 365 days in a year.

4. Freedom for opening/closing time of establishment.

5. Women to be permitted during night shift.

6. No discrimination against women in the matter of recruitment, training, transfer or promotions.

7. Online one common Registration through a simplified procedure.

8. Power of Government to make rules regarding adequate measures to be taken by the employer for the safety and health of workers.

9. Clean and safe drinking water

10. Lavatory, Creche, First Aid and Canteen by group of establishments, in case, it is not possible due to constraint in space or otherwise by individual establishment

11.Twelve days casual cum sick leave.

12. One day earned leave for every twenty days of work performed (can be
accommodated up to 45 days)

13.Five paid holidays for festivals in addition to three national holidays.

14. Exemption of highly skilled workers (for example workers employed in 1.T., Bio- Technology and R&D division) from. daily working hours of t hrs and weekly
working hrs of 48 hrs subject to maximum 125 over-time hrs in a quarter.

15. Facilitators may be appointed by the Government with the following duties –

(i) Supply information and advice to employers and workers concerning
complying with the provisions of the Act.
(ii) inspect the establishment based on inspection scheme framed by the
Government

Necessary Draft Model enclsoed .




Post Views: 1,764

PMO seeks welfare coverage for construction labour

Posted by & filed under Provident Fund - (Notification -Circulars).

The Prime Minister’s Office (PMO) has asked the labour ministry to ensure that all construction workers in the country are covered under social security schemes such as the Employees’ Provident Fund.

Labour Secretary Shankar Aggarwal has also written to state governments to seek their co-operation in the endeavour.

The biggest challenge in bringing millions of India’s construction workers under various welfare schemes is the seasonal and migrant nature of their job.

Semi-skilled
Most workers in the construction sector are semi-skilled or unskilled and work at sites across the country for spells of a few months at a time. With low literacy levels, they are also prone to benefit cheating by employers or contractors they work with.

Cess collections
Every state collects cess on the cost of construction incurred by employers to form a fund to be utilised for welfare of construction workers.

Of the total cess of Rs 16,214 crore collected till December 2014, only Rs 2,859 crore, or a little over 17 per cent, has been spent as most states have failed to design any schemes to deploy these funds.

“The matter (of covering construction workers) is being monitored at the highest level in government and this is an area flagged as one of utmost concern,” according to a note sent to all provident fund commissioners last week.

“Thus it becomes imperative that this work is accorded top priority and taken up in right earnest, duly engaging all the stakeholders, including various trade unions and industry bodies,” Regional Provident Fund Commissioner (Compliance) Gautam Dixit wrote in the missive.

UAN portal
To counter the issue of frequent changes in employer and location, the Employees’ Provident Fund Organisation or EPFO has decided to register construction workers on the Universal Account Number (UAN) portal, thereby allocating them a universal number for easy transfer of PF funds while switching jobs.

The regional commissioners have been requested to organise meetings with public sector units, trade unions and visit big construction sites. The EPFO has also asked them to hold meetings with state labour departments and to get in touch with the State Building and Construction Workers Board constituted by states to get the database of construction workers.

The PF office has sought an action taken report from all the regional PF commissioners within seven days on the issue.

Pls refer to the necessary circular as issued by the Central Epf Office to All SRO & Regional Office.

C3_Coverage_ConstructionWkrs_22072

@Courtesy  http://www.thehindu.com/business/

Post Views: 1,428

STAY-ORDER-HIGH-COURT-OF-KERALA-PAYMENT-OF-BONUS-AMENDMENT-ACT-2015

Posted by & filed under High Court Order on Bonus Act 2015.

Dear all,

As per the new amendment of bonus act kerala High Court has given Stay to the same the respective High Court Order is enclosed for your ready reference. In my view we should wait for Some time before paying the bonus amount i.e. from Apr 2014 there are chances that some other states also get Stay order in the same manner. 

STAY-ORDER-HIGH-COURT-OF-KERALA-PAYMENT-OF-BONUS-AMENDMENT-ACT-2015-
Post Views: 1,379