Is It Legal to Combine Employee Counts Across Multiple Factory Units for Apprenticeship Quotas?

An employee had three manufacturing units at different places, each registered separately as a factory under the Factories Act, 1948, and each employing 50 employees. The competent authority under the Apprentice Act, 1961, clubbed the three units and determined the total strength of apprentices to be inducted into the units. Is the clubbing valid?

A bus conductor died of a heart attack after working hours while he was sleeping in the bus, which was standing at a bus depot. The nominee of the deceased conductor claimed compensation under the Workmen's Compensation Act, 1923.

Is the employer liable to pay the compensation to the nominee?

On the basis of an agreement signed between the trade union and the management, it was agreed to pay a bonus of 30% of wages to all eligible employees under the Payment of Bonus Act, 1965.

Is the agreement valid?

Under the Payment of Gratuity Act, 1972, an employer can withhold the payment of gratuity to an employee when the latter fails to vacate the accommodation allotted to him by the employer.

Please comment on this statement giving legal reasons.

An employer defaults in making payment of P.F. contributions to the Provident Fund. The period of default is 5 months. Is the employer liable to pay damages, and if so, at what rate of damages?

Thank you for such a good question. Actually, the employer is liable to pay damages, and the rate is set by the competent authority.

Yes, the payment of Gratuity may be withheld for non-vacation of the employer's accommodation. However, it can't be denied. Even any outstanding dues may be adjusted from it.

Regards

[QUOTE=Shaziaaa;1254343]
An employer defaults in making payment of P.F. contributions to the Provident Fund. The period of default is 5 months. Is the employer liable to pay damages, and if so, at what rate of damages?

The rate of damages for delayed payment of 5 months is 15%. The slab is as follows:-

Period of delay %age of damages
up to 60 days 5%
61-120 10%
121-180 15%
181-onwards 25%

Regards

I don't think the clubbing is correct. In the said act, the same is not provided, but depending upon certain logic, they may interpret the theory of clubbing together if all three units are interrelated in the manufacturing process.

Regards

Minimum waiting period is 5 years. Beyond 5 years, gratuity is payable, and every completed service of 6 months is treated as a year.

For example, a service of 5 years and 6 months is treated as 6 years.

Yes, the agreement is valid. The maximum 20% bonus is a statutory requirement, but more may be paid on mutual understanding. IT rebate will be limited to 20% amount only. In the agreement, the phrase "under the Payment of Bonus Act, 1965" may be avoided.

Regards

I am afraid this answer is incorrect. In the fourth year, the employee could not have completed 240 days of continuous service having worked only for 6 months. Therefore, the employee under these circumstances will not be eligible for payment of Gratuity.

Vasant Nair

Q1: Clubbing of Manufacturing Units

An employee had three manufacturing units at different places, each registered separately as a factory under the Factories Act, 1948, and each employing 50 employees. The competent authority under the Apprentice Act, 1961, clubbed the three units and determined the total strength of apprentices to be inducted into the units. Is the clubbing valid?

Ans: According to the law, nothing is specified, but logically, the authority can decide on the issue, and we have to obey it.

Q2: Withholding Gratuity Under the Payment of Gratuity Act, 1972

Under the Payment of Gratuity Act, 1972, an employer can withhold the payment of gratuity of an employee when the latter fails to vacate the accommodation allotted to him by the employer.

Ans: Under the act, we cannot withhold the amount; however, the charges can be adjusted while doing full and final settlement. Gratuity is a part of the full and final settlement. If the employee does not vacate the premises, you can issue him a show-cause notice by marking CC to the Labour Office to avoid any future legal hurdles.

Q3: Compensation Under the Workmen's Compensation Act, 1923

A bus conductor died of a heart attack after working hours while he was sleeping in the bus, which was standing at a bus depot. The nominee of the deceased conductor claimed compensation under the Workmen's Compensation Act, 1923. Is the employer liable to pay the compensation to the nominee?

Ans: No! But you should be sure and must prove that he was not on duty at the time of death. The death should not be a result of any accident, and it should be natural. A medical certificate is also required.

Q4: Agreement on Bonus Payment Under the Payment of Bonus Act, 1965

On the basis of an agreement signed between the trade union and the management, it was agreed to pay a bonus of 30% of wages to all eligible employees under the Payment of Bonus Act, 1965. Is the agreement valid?

Yes, the minimum set bonus is 20%! There is no maximum limit defined, but once you have given the privilege, you cannot withdraw it under the act.

Regards,
Manish Gupta

Dear Member,

Which section/rule requires 240 days for a bonus?

With Regards,

R.N. Khola

"Today's bonus becomes a part of CTC. But 240 days are required for the bonus."

YES, the nominee is eligible to receive compensation whether the person is on duty or off duty. He/she is always under duty, and may just be experiencing pain or needing rest. Therefore, the nominee can claim compensation.

Yes, the nominee is eligible to receive compensation whether the person is on duty or off duty. He or she can claim compensation in either case.

Dear Member,

Please inform Mr. Kundan Suman that he is required to work for 240 days. Section 8 stipulates that a minimum of 30 days of work in an accounting year is necessary to qualify for receiving a bonus.

Regards,
R N Khola

Hi,

Yes. Employers can apply to the Chief Inspector, and two or more factories shall be treated as a single factory.

MANOKAVIN

Clubbing is not valid. Clubbing is not valid as the place of the factory is different, and all the factories have their separate identity in the office of the factory officer.

Dear Galatage,

No, not at all. An employee should complete 5 or more years to be entitled to gratuity.

KIRAN KALE, KOLHAPUR.

Dear Galatage,

Upon completion of 30 days of service for the unit covered under the Bonus Act, an employee shall be eligible to receive a bonus for that accounting year.

KIRAN KALE, KOLHAPUR.

I agree with Laldee, only in the case of disciplinary actions could the employer cease the payment of gratuity.

KIRAN KALE,

Dear Shaziaaa,

The contents of the agreement have superseded the provision of the Bonus Act, which states a maximum limit of a 20% bonus. However, the 30% can be bifurcated as 20% bonus + 10% ex-gratia payment when agreed upon by the employer through a settlement.

KIRAN KALE.

NO. AS PER THE GRATUITY ACT, AN EMPLOYEE SHOULD COMPLETE FIVE YEARS OF CONTINUOUS SERVICE.

Prakash Salunkhe

An employee is a member of the Employee Family Pension Fund Scheme. He superannuates after completing 33 years of continuous service and having a pensionable salary of Rs. 12,000 per month. Calculate the monthly pension he is entitled to receive under the scheme.

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"It is not obligatory to appoint a presenting officer in the part of an employer in a domestic enquiry."

Comment on this statement giving legal reasons.

In a domestic enquiry, the employer is not legally required to appoint a presenting officer. This means that the employer can choose whether or not to have a representative present the company's case during the enquiry process. The decision to appoint a presenting officer typically depends on the complexity of the case, the seriousness of the allegations, and the company's internal policies. However, it is important to note that even though it is not mandatory, having a presenting officer can help ensure a fair and thorough investigation, especially in situations where legal expertise or advocacy skills are needed to represent the employer's interests effectively.

Dear Mr. Khola,

This applies only after an employee completes the qualifying criteria of 5 years.

Regards, Vasant Nair

For the payment of a bonus, an employee/worker needs to work for at least 30 days in the financial year.

Dear Sir,

Regarding the bonus of 30%, it can be given as a maximum of 20% as per the bonus act, and the balance as ex gratia payment.

Regards,
T.S. SRINIVASAN

Dear Sir,

On the basis of an agreement signed between the trade union and the management, it was agreed to pay a bonus of 30% of wages to all eligible employees under the Payment of Bonus Act, 1965. Is the agreement valid?

Organization can pay a bonus of the maximum allowable 20% and the balance of 10% as ex-gratia payment.

Regards,
T.S. SRINIVASAN

I fully agree with the remarks, i.e., an employer cannot withhold the gratuity amount of an employee even if he is not vacating the company's accommodation.