Understanding Labor Laws: What Are the Payment and Leave Rules for New Factory Workers?

Hi,

Can someone please let me know what the rules are regarding payments and leave for labor in a new factory? What benefits, according to the law, are to be given to the workforce?

Thanks

Hi Mr. Malik,

I need to know what laws are applicable for a new factory. Laborers are on a contract basis. What benefits are applicable to them for annual leave, salaries, holidays, bonus, overtime, etc.? I would appreciate as much information as possible.

Thanks,
Anne

Dear,

Different acts will apply for a new factory, alongside other laws. I am specifying laws related to labor: the Factories Act, PF Act, ESI Act, Maternity Benefit Act, Equal Remuneration Act, Gratuity Act, Payment of Wages Act, Minimum Wages Act, Standing Orders Act, etc. There are many more acts as well.

Basically, you want to know everything within two lines, which is not possible. There is a provision in the Factory Act regarding annual leave, OT, etc.

Thanks,
J.S. Malik

Dear Anne,

It is better to appoint an HR officer for your unit.

Regards,
R.N. Khola

(Labour Law & Legal Consultants)

Dear Anne,

It is indeed a very far-stretched query. Mr. Malik JS is quite fair in his reply. Please provide the following information:

1. Where is the location of the Factory?
2. How many contract laborers are employed through a contractor?
3. What type of job is being assigned to the workmen?
4. In what capacity are you employed?

The Factories Act, Payment of Wages Act, Equal Remuneration Act, PF, ESI, Workmen Compensation Act, Payment of Gratuity Act, Payment of Bonus Act, ID Act, Maternity Benefit Act, etc., are all applicable.

Please revert back with your specific problems/workings, etc., so that it can be sorted out on a case-to-case basis.

Regards,
Dy Manager Admin & IR

Dear Sir,

From the information provided, it appears that your factory is located in Mumbai. The Factories Act of 1948 and the Maharashtra Factories Rules framed thereunder are applicable.

According to the definition, a 'Workman' means every person engaged in the factory, whether permanent, casual, temporary, contract labor, apprentice, trainee, substitute, etc., performing skilled, semi-skilled, or unskilled, clerical, supervisory, or managerial work falls within the purview of the definition.

Under the provisions of the act, every workman who works for 20 days or more is entitled to one day of leave. A workman who works for more than 240 days in a calendar year and continues employment into the next year is entitled to one day of leave for every 20 days of work performed.

A workman who resigns, quits, is discharged, or dismissed from service is entitled to leave wages for any accrued but unused leave. For further details, please refer to the provisions of the act.

If you require more clarification, please feel free to contact me on my cell at 9890752690.

I hope this information resolves your query.

Thanks,
Avinash Kanoray
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Personally, I feel that no organization entertains the idea of providing one day's leave to contract laborers after 20 days of their work.