In India, there are various laws enacted, and the objectives of all the laws are different. The umbrella of miscellaneous laws consists of various important acts, which are shown below:
Table of Contents
All the laws shown in Figure are related to promoting the welfare of workers and employees and improving their social life by providing sufficient remuneration to them and making provisions for their regular flow of income after attaining the age of superannuation.
Workmen Compensation Act, 1923
The Workmen Compensation Act, of 1923 came into force on the first day of July 1924. This Act is divided into four chapters and 36 sections.
- Definitions under Workmen Compensation Act, 1923
- Objectives of Workmen Compensation Act, 1923
- Scope and Major Provisions of Workmen Compensation Act, 1923
Definitions under Workmen Compensation Act, 1923
The important definitions under this Act are as follows:
Compensation
“Compensation” means compensation paid under this Act.
Minor
“Minor” means a person who has not attained the age of 18 years.
Objectives of Workmen Compensation Act, 1923
The Workmen Compensation Act, of 1923 aims to provide relief to workers and/or their dependants in case of an accident or the death of the worker.
The object is that if an employee or worker dies during the course of employment or while undertaking or performing his duty, his family or dependents should be provided relief in monetary terms so that their livelihood is not affected. This relief is also provided in the case of disablement.
Scope and Major Provisions of Workmen Compensation Act, 1923
The Workmen Compensation Act, of 1923 extends to the whole of India. There was an amendment in the year 2000, wherein all the workers were brought into the ambit of the Workmen Compensation Act, irrespective of the nature of the job for which they were employed.
Hence, with the amendment, the workers employed on a casual basis or otherwise for the purpose of employer trade or business are covered in the sphere of the Workmen Compensation Act.
The employees, including those employed through the labor contractor or otherwise, who suffer any injury that makes them disabled or incapable of earning a similar income or in other words, reduce their earning capacity are entitled to compensation.
The employer covered under this Act shall be liable to compensate the workers who have suffered an accident in the course of the employment, causing:
Death
The death clause is applicable when the employee or worker dies on the account of an accident.
Permanent Total Disablement
This applies when the earning capacity of the worker is lost permanently.
Temporary Disablement
This applies when the earning capacity of the worker is lost for a certain period.
Permanent Partial Disablement
Permanent partial disablement takes place when the earning capacity of the worker is reduced
The amount of compensation payable to a worker depends upon the wages drawn by the worker and the nature of the injury caused. For example, in case of death, the compensation shall be 50% of the monthly wages multiplied by the relevant factor or ₹80,000, whichever is more.
Payment of Bonus Act, 1965
The Payment of Bonus Act was made applicable from 25th September 1965. It has 40 sections. It is applicable to every factory and every other establishment that employs 20 or more employees on any day during an accounting year.
- Definitions Under Payment of Bonus Act, 1965
- Objectives of Payment of Bonus Act, 1965
- Scope and Major Provisions of Payment of Bonus Act, 1965
Definitions Under Payment of Bonus Act, 1965
Some of the important definitions are as follows:
- “Accounting Year” is the year ending on the day on which the books and accounts of the corporation are to be closed or balanced in relation to a corporation.
- “Agricultural Income” is the income having the same meaning as per the Income Tax Act.
- Available Surplus” means surplus computed under Section 5.
Objectives of Payment of Bonus Act, 1965
The Payment of Bonus Act, of 1965 aims at providing a part of profits towards the payment of bonus to the employees of certain establishments.
Scope and Major Provisions of Payment of Bonus Act, 1965
Under the Payment of Bonus Act, 1965, all the employees receiving salary or wages up to `10,000 per month and engaged in any kind of work whether skilled, unskilled, manual, etc. are covered under the Act if that particular employee has worked for at least 30 days in that particular accounting year.
The minimum bonus payable is 8.33% of the salary or wages of the employee during the accounting year. This is payable even if the employers suffer a loss. The maximum bonus payable under the Act is 20% of the basic salary and wages.
The relevant rates of the Bonus Act are shown in Figure:
The bonus is paid within 8 months of the closure of the accounting year and is paid on an annual basis; the mode of payment of the bonus is cash.
If any employer contravenes any of the provisions of this Act, the penalty that may be imposed is up to ₹1000 or imprisonment for 6 months or both.
Employees Provident Fund and Miscellaneous Provisions Act, 1952
The Employees Provident Fund and Miscellaneous Provisions Act, 1952 is applicable in entire India except in the state of Jammu & Kashmir. This Act seeks to provide economical support to the employees and workers employed in a factory.
This Act is divided into 10 chapters and 82 sections, and it was made effective from 2nd September 1952 and was amended from time to time.
- Definition under Employees Provident Fund and Miscellaneous Provisions Act, 1952
- Objectives of Employees Provident Fund and Miscellaneous Provisions Act, 1952
- Scope and Major Provisions of Employees Provident Fund and Miscellaneous Provisions Act, 1952
Definition under Employees Provident Fund and Miscellaneous Provisions Act, 1952
Some of the important definitions under this Act are as follows:
- “Children” mean legitimate children, including adopted children if the commissioner is satisfied that the child is legally recognized.
- “Financial Year” means the year commencing from the 1st day of April.
- “Seasonal Establishment” means the plantation of tea, coffee, rubber, or pepper or a coffee curing establishment.
Objectives of Employees Provident Fund and Miscellaneous Provisions Act, 1952
The Employees Provident Fund and Miscellaneous Provisions Act, of 1952 is enacted to provide monetary security to employees after their retirement and to their dependents in case of death.
Scope and Major Provisions of Employees Provident Fund and Miscellaneous Provisions Act, 1952
Under this Act, three schemes are provided, which are shown in Figure:
These three schemes under the Employees Provident Fund and Miscellaneous Provisions Act are discussed as follows:
- Employees Provident Fund Scheme: Under this scheme, the amount is accumulated and paid along with interest at the time of retirement, resignation, or death. This scheme allows making a partial withdrawal from the account.
- Employee’s Pension Scheme: Under this scheme, the contributor shall be getting a monthly pension after he/she retires.
- Employees Deposit Linked Insurance Scheme: Under this scheme, if the employee dies, the survivors or dependants shall be paid a lump sum amount.
- Table 10.1 shows the amount of the contribution of the employee and employer in these three schemes:
| Employee Provident Fund | Employee Pension scheme | Employee Deposit Linked insurance scheme | |
|---|---|---|---|
| Employee Provident Fund | Employee Pension Scheme | Employee Deposit Linked Insurance Scheme | |
| Employee | 12% | 0 | 0 |
| Employer | 3.67% | 8.33% | 0.5% |
Besides the above contributions, the employer is also required to contribute towards the administration of funds.
The contribution is made from the basic salary. The contribution is mandatory when the employee’s wages/salary is up to ₹15,000.
Payment of Gratuity Act, 1972
The Payment of Gratuity Act, 1972 was enacted on 21st August 1972. It is divided into 15 sections. The main objective of the Gratuity Act, of 1972 is to reward the employee’s past services when the services are terminated or the employee is retired.
- Objectives of Payment of Gratuity Act, 1972
- Scope and Major Provisions of Payment of Gratuity Act, 1972
Objectives of Payment of Gratuity Act, 1972
Gratuity is a voluntary payment made by the employer to the employee for sincere and continuous services rendered by him/her. The Act provides for an obligation for the payment of gratuity to the employees covered under the Act.
Scope and Major Provisions of Payment of Gratuity Act, 1972
Under the Act, completed years of service means continuous service of five years.
The Gratuity Act is applicable on the following:
- Employees engaged in factories, mines, oilfields, plantations, ports, railways, companies, or other establishments and for matters connected therewith or incidental with.
- Every shop and establishment falls within the meaning of the law, in which 10 or more persons are employed or were employed, on any day of the preceding twelve months as specified in the government notification.
- Such establishments where 10 or more persons are employed or were employed, on any day of the preceding twelve months as specified in the government notification.
Entitlement of Gratuity
Gratuity is payable to employees who have rendered continuous service for five years or more. It is payable on termination, superannuation, or at the time of resignation.
Forfeiture of Gratuity
Gratuity can be forfeited in the following circumstances:
- Any act, wilful omission, or negligence, causing damage to the employer’s property or loss to the employer.
- Act of riotous conduct or any act of violence on the part of the employee.
- Any act that constitutes an offense of moral turpitude.
- If the employee leaves the employment before the completion of the continuous service period of 5 years.
Maximum Limit and Amount of Gratuity Payable
The maximum gratuity payable to the employee is ₹10 Lakhs, which is exempted as per the Income Tax Act.
The gratuity amount is determined in the following manner:
- The employer shall pay gratuity at the rate of 15 days wages for every completed year of service based on the rate of last drawn wages by the employee concerned.
- The formula for calculation is as follows:
(Basic Salary + DA) × Number of Years of Continuous Service
If the employee has worked for more than 6 months, one complete year is to be counted. If the employee has worked for less than 6 months, that period is ignored.
Thus, the main provisions of the Gratuity Act are as follows:
- The minimum amount of the gratuity paid under the Gratuity Act is 3.5 lakhs.
- For getting the gratuity amount, an employee must have worked for at least five years with an organization.
- The maximum gratuity amount cannot exceed 10 lakhs.
- An employer can deduct gratuity for negligence in services.
Minimum Wages Act, 1948
The Minimum Wages Act, of 1948 ensures that workers and employees earn wages that are sufficient to earn their livelihood.
- Definition under Minimum Wages Act, 1948
- Objectives of Minimum Wages Act, 1948
- Scope and Major Provisions of Minimum Wages Act, 1948
Definition under Minimum Wages Act, 1948
The Act is divided into 31 sections. Some important definitions under this Act are:
“Adolescent” means a person who has completed the age of 14 years but has not completed 18 years of age.
“Adult” means a person who has completed 18 years of age.
Objectives of Minimum Wages Act, 1948
The Minimum Wages Act, of 1948 is an Act that protects the interest of workers; the wages of workers are fixed as per the norms prescribed by the fair wage committee. It is an Act that sets the minimum wages that are to be paid to skilled and unskilled laborers.
Scope and Major Provisions of Minimum Wages Act, 1948
The Minimum Wages Act is applicable all over India and ensures that wages are sufficient for the subsistence of workers. This Act specifies the minimum wage rate on a per-day basis; the revision of the minimum wage takes place on the basis of the cost of living index.
The State and Central Governments have the power to fix and revise the minimum wages. There are two methods of fixing the minimum wage:
- Committee Method: Under this method, a committee is appointed to make recommendations and inquiries.
- Notification Method: Under this method, the rates of minimum wages are notified in the Official Gazette.
Information Technology Act, 2000
The Information Technology Act, of 2000 was notified on 17th October 2000. It consists of 94 sections segregated into 13 chapters and 4 schedules.
This Act recognizes alternatives to paper-based methods of communication and storage of information. This recognition allows the use of the electronic storage of data for the use for legal purposes.
Further, other Acts such as the Indian Evidence Act, of 1872 and the Indian Penal Code, of 1860 are amended to provide legal recognition to the documents specified under the Information Technology Act, of 2000.
- Objectives of Information Technology Act, 2000
- Scope and Major Provisions of Information Technology Act, 2000
Objectives of Information Technology Act, 2000
The objective of the Information Technology Act, of 2000 is to provide legal recognition to the information and transactions that are undertaken through the means of electronic interchange or other means of electronic communication.
Scope and Major Provisions of Information Technology Act, 2000
The major provisions under the Information Technology Act, of 2000 are as follows:
Legal Recognition of Electronic Documents
Where any law provides that information or any matter shall be in writing or in the typewritten or printed form, then such requirement shall be deemed to have been satisfied if such information or matter is:
- Rendered or made available in the electronic form
- Accessible so as to be usable for a subsequent reference
Legal Recognition of Digital Signatures
If any information/matter is required by the law to be authenticated by affixing the signature, such requirement shall be deemed to have been satisfied. If such information/matter is authenticated by the means of a digital signature, it should be affixed in the prescribed manner.
Offenses
Offenses and punishments related to information technology are summarised in Table 10.2:
Offenses | Imprisonment Term upto | Fine up to |
|---|---|---|
| Tampering with the computer source document | 3 Years | 2 lakhs |
| Hacking a computer system | 3 Years | 2 lakhs |
| Publishing of information that is obscene in electronic form | 5 Years | 1 lakh |
| Failure to comply with the orders of the controller | 3 Years | 2 lakhs |
| Failure to comply with the directions of the controller to extend facilities for decrypting information | 7 Years | NIL |
| Securing access to a protected system | 10 Years | No Limit |
| Misrepresentation or suppression of fact. | 2 years | 1 Lakh |
| Breach of confidentiality and piracy, publishing false or fraudulent DSC | 2 years | 1 Lakh |
The Information Technology Act, of 2000 validates electronic contracts. It states that the Civil Court has no jurisdiction over the offenses under the Information Technology Act, of 2000. Even the appeal lies to the High Court if anyone is aggrieved by the order of the lower court.
