Labour Laws


Applies to:
Every establishment which employed 5 or more ISM workmen.
Every contractor who employed 5 or more ISM workmen.
An ISM worker is a person who is recruited by a contractor in one state for employment in other state.
Registration for Principal Employer: To apply in Form No.1

Licence for contractor:
To recruit ISM workmen-To apply in Form-IV
To employ ISM workmen:To apply in Form V
Along with Form VI to be issued by the principal employer.

Licence:
To be renewed every year by applying in Form-IX within 30 days before the expiry date.
Records & Returns

By Principal Employer :Register of Contractors-Form XII.

Register of workmen employed: Form XII
Annual return Form XXIV not later than 15th February By the contractors: Register of workmen employed(Form XVIII) Muster Roll(Form XVII) Register of Wages(Form XVIII) Displacement cum outward journey allowance sheet(Form XV) Register of damages or loss(Form XIX) Fines(Form XX ) Advance(Form XXI) Overtime(Form XXII)Return journey allowance(Form XVI)Particulars of ISM workmen(Form X)
Issue pass book to ISM worker.
Service certificate to ISM workmen on his termination in Form XIV.
To display the Abstract of the Act & Rules and notices showing the rates of wages hours of work etc.
Return of ISM workers ceased to be employed: Form XI.
Half yearly return in Form XXIII not later than 30th January & 30th July.


Superannuation Pension: On retirement after attaining the age 58 with at least 10 year service.
Early Pension -To a member retired or left employment before the age 58 but having 10 years service. Pension before the age 58 but not earlier than the age 50.Will be reduced by 4% for every year the age falls short of 58.
Computation of Monthly Pension-

Pensionable Salary * Pensionable Service
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Pensionable Salary-Average monthly pay during the last 12 months.
Pensionable Service-The period for which contribution paid or payable. Two years will be added as grace period to a member who superannuated on attaining the age of 58 and or having at least 20 years service.
Eligible Service-Rounding off:The fraction of service for 6 months or more to be rounded off to full year - less than 6 months to be ignored.
Options for whom left service earlier than the age of 58 years.
For a scheme certificate
For early pension
For withdrawal benefit.
Pension to be disabled:Minimum Rs.250/- No age condition. Even one month contribution will made a member eligible for this.
Pension to the widow/widower-if member dies while in service or after the date of exit from service which qualified for pension

Minimum: Rs.450/-up to the death or re-marriage.

Children Pension: For each child up to the age of 25. Equal to 25% of the widow pension-Minimum Rs.150/- Only for two at a time in preference of elder children. For a disabled son/daughter no restrictions.
Orphans pension-75% of the widow pension.Minimum Rs.250/- to each child.
Applies to : If the employment strength on any day reached:
10 or more in a power using factory.
20 or more in a non power factory.
Govt can apply the act even to small factories with less number of employees.
Licence: No manufacturing process to be carried out without licence.

Renewal:Last date 31st October

Registers:
Muster Roll in Form 25
Register of Adult Workers in Form 12
Attendance Card in Form 28
Leave Book in Form 16
Register of compensatory holidays in Form 9
Notice of periods of work Form 11
Leave with wages register in Form 15
Record of white washing etc. in Form 7
Register of accident in Form 26
Particulars of rooms in Form 35
Employer to Display:
An abstract of Act and Rules in Form 20
Notice on weekly holidays
Notice regarding first aid
Notice of periods of work in Form 11
Sign Boards

Returns:
Annual Return: Last date 31st January in Form 21
Half yearly return: Last date 15th July in Form 22

Penalty:
Two year imprisonment and fine Rs.1 Lakh.

For Subsequent Offence:
Three years imprisonment and fine Rs.2 Lakhs

Superannuation Pension: On retirement after attaining the age 58 with at least 10 year service.
Early Pension -To a member retired or left employment before the age 58 but having 10 years service. Pensio before the age 58 but not earlier than the age 50.Will be reduced by 4% for every yesr the age falls short of 58.
Computation of Monthly Pension-

Pensionable Salary * Pensionable Service
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70

Pensionable Salary-Average monthly pay during the last 12 months.
Pensionable Service-The period for which contribution paid or payable. Two years will be added as grace period to a member who superannuated on attaining the age of 58 and or having at least 20 years service.
Eligible Service-Rounding off:The fraction of service for 6 months or more to be rounded off to full year - less than 6 months to be ignored.
Options for whom left service earlier than the age of 58 years.
For a scheme certificate
For early pension
For withdrawal benefit.
Pension to be disabled:Minimum Rs.250/- No age condition. Even one month contribution will made a member eligible for this.
Pension to the widow/widower-if member dies while in service or after the date of exit from service which qualified for pension
Minimum: Rs.450/-up to the death or re-marriage.
Children Pension: For each child up to the age of 25. Equal to 25% of the widow pension-Minimum Rs.150/- Only for two at a time in preference of elder children. For a disabled son/daughter no restrictions.
Orphans pension-75% of the widow pension.Minimum Rs.250/- to each child.

Applies to:
Every Factory & Plantation.
Establishments if employed 20 or more persons on any day.

Grant of holidays:
Every employee shall be allowed in each calendar year a holiday on 26th January, 15th August, 1st May, 2nd October and nine other festival holidays.

Wages:
Employee shall be paid on holidays. If he works on a holiday he shall be entitled to twice the wage and for a substituted holiday on any other day. No wages if the holiday falls during the period of an illegal strike & the employee participated in it. No wages on a holiday (other than National Holiday) unless the employee has worked 30 days during the period of preceding 90 days.

Employer to Furnish:
A list of festival holidays on or before 30th November every year to the inspector for approval.

Employer to Display:
A statement of approved holidays before 31st December.

Registers:
Muster Roll in Form VI

To work on a Holiday:
Notice to employee with copies to inspector & Notice Board.

Returns:
Annual Return:Last date 31st January in Form V.
Applies to:
Every establishment in which 20 or more contract workmen are employed.
Every Contractor who employs 20 or more workmen.

Principal Employer to obtain registration :By applying in Form I.

Contractor to obtain licence :By applying in Form IV along with Form V to be
issued by the Principal Employer.The validity of
licence will be one year.

Renewal of Licence : To be applied in Form VII before 30 days of
expiry of the Licence.

Registers by Principal Employer :Register of Contractors:Form XII

Annual Return by Principal Employer :Form XXV(by 15th February)

Records,Register and Returns by Contractor
Register of Workmen :Form XIII Reg.of deduction of Damages/Loss:Form XX
Employment Card :Form XIV Register of Fines :Form XXI
Muster Roll:FormXVI Register of Advances :Form XXII
Wages Register :Form XVII Register of Overtime: Form XXIII
Combined Register :Form XVIII Service Certificate :Form XV
Wage Slip : Form XIX Half Yearly Returns :Form XXIV
To display extract of the Act and Rules by 30th January and 30th July
As per Kerala Rules As per Central Rules
No.of workmen Registration Fees Licence Fees No.of workmen Registration Fees Licence Fee
Up to 50 1000 750 Is 20 60 15
51 to 100 2000 1500 21 to 50 150 37.5
101 to 200 3000 2500 51 to 100 300 75
201 to 300 4000 4000 101 to 200 600 150
301 to 500 6000 6000 201 to 400 1200 300
Exceeds 500 10000 10000 Exceeds 400 1500 375

Security Deposit @Rs.20/ per workman by contractor. Security Deposit @Rs.90/ per
workman by contractor.
In the case of Co-operative societies Rs.5/ . In the case of Co-operative societies
Rs.15/-
Applies to: All establishments coming under Kerala Shops & Comm.Est.Act 1960

Eligibility: Employees in the age group of 18yrs to 55yrs.

Contribution: Rs20/-by employee and Rs20/- by employer.Rs40/- by a self employed person.

Last date for payment: 5th of every month.

Registers: Register of contributions.

Returns: List of employees in Form IV within 15 days from the date of applicability.

List of employees joined and left: In Form V by 10th of every month.
Statement of contribution in Form VI by 10th of every month.
Benefits at a glance:Benefits for sickness,maternity,accident and allowances for education,marriage etc.Pension on reaching the age of 60 and having contributed for 10 years or unable to work for more than 2 years due to physical infirmity.Pension to family on the death of member.Employee's contribution in full will be refunded.

Kerala Municipalities Act:Profession Tax Half Yearly Income
From To Tax
Rs.   Rs.   Rs.
12000 17999 120
18000 29999 180
30000 44999 300
45000 59999 450
60000 74999 600
75000 99999 750
100000 124999 1000
125000 & above 1250
Due Date in Panjayath February 28/29th & August 31st in Municipalities/Corporations
March 31st & September 30th
Income will not include H.R.A & C.C.A.
Applies to:
Every Factory and
Establishments if employed 10 or more persons on any day

Eligibility:
Salary not to exceed Rs.10,000/-
Worked at least 30 days in the relevant year.
Salary in excess of Rs.3500/- not to be taken into account for the purpose of computation of bonus.

Disqualification:
If dismissed for fraud, theft, violent behavior etc.

Quantum:
Minimum 8.33% - Maximum 20% of the salary/wages earned in an accounting year.

Salary means: Basic +DA

Time Limit:
To pay within eight months from the close of an accounting year.

No Bonus:
For the years of loss during the first five years.

Registers:
Form A,B & C.

Returns:
Annual Return in form D within 30 days of the due date for payment.
Applies to:
Every Factory,Plantation etc.
Shops & Establishments if employed 10 or more employees on any day.

Eligibility:
On termination of employment after five years of service due to retirement/resignation/retrenchment
No five year condition in case of death, disablement due to accident or disease.

Quantum:Fifteen days salary /wages(last drawn) for every year of service or part thereof in excess of six months.

Maximum gratuity: Rs.10,00,000/-

Calculation:
Last month salary(Basic + DA) * 15 * No.of Yrs
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Due date:
Not later than 30 th day from the date of receipt of the application.

Other obligations:
To submit Form A within 30 days of opening.
To submit Form B within 30 days of any change.
To submit Form C within 60 days before closure.
To display notice of authorised persons.
To display abstract of the Acts & Rules in Form 2

APPLIES: To Factories,Shops,Establishments, Hospitals, Educational Institutions-if the employment strength on any day reached
10 or more
Wage celling for coverage of an employee
Rs:21,000/-(w.e.f.01-01-2017)
Percentage of contribution:
Employee--- 1.75% of wages
Employer--- 4.75% of wage
Contribution on total wages except T.A.and washing allowance.
No employee's share of contribution if his/her average daily wages does not exceed Rs.100/-

If the wages of an employee covered in a contribution period exceeds Rs.1500/-he/she will continue to be covered till the expiry of that contribution period.

Last date to pay contribution:15th of every month.

Registers to be maintained

Accident Register Form 12 Reg.66
Inception Book -- Reg.102A

Books of Accounts, and other connected records to be preserved for 5 years for inspection.

Annual Information:Form 01A 31st January

APPLIES: To every scheduled or notified establishment if the employee strength is 20 or more

Wage ceiling for coverage of an employee
Rs:15,000/-(w.e.f. 01-09-2014)

An employee once covered will continue to be covered even if his wages later exceeds Rs:15,000/- But payment of contribution on the wages in excess of Rs:15,000/- optional.

Percentage of contribution
A/c No. :  1      2      10     21 
Employee: 12%     -      -      - 
Employer: 3.67%  0.65%  8.33%  0.5% 

Total : 25.15%

Contribution on Basic + DA + Retaining Allowance
Last date to pay:15th of every month.
Records to be maintained
Form 9 Para 36(1)
Form 3A Para 35
Inspection Book Para 36(4)

Returns Last Date
Monthly Abstract Form 12A 25th of every month
List of employees left and joined 15th of every month
Form 5 & 10

Annual Returns:Form 6A 30th April

Applies to: All shops and Commercial Establishments.

Registration: To apply in Form B1

Due Date:Within 60 days of commencement.

Renewal:Year to year -To be applied on or before 30th November of every year.

Changes: To be reported within seven days.

Registers:Register of Employment(F A/B),Service Record.(F-BB),A record of hours of work(F-D).Register of Holidays & Leave(F-F),Visit Book.

Returns: Quarterly Return in Form H before 10th of Jan,April,July&Oct. (Only if 10 or more persons are employed.)

To Display:Registration Certificate,Notices of weekly holidays of Employees and of Establishment,Abstract of the Act and Rules.

Hours of Work:Maximum - 8 hours on a day(including O.T.10 hours) 48 hours in a week
O.T Wages: Double the wages

Intervals :No work for more than 4 hours without interval of one hour.Total hours including rest hours shall not spread over more than 101/2 hours.

Weakly Holidays:Shop to remain closed one day in a weak.
Annual Leave-12,Casual Leave=-12,Sick Leave-12

Fee for Registration and Renewal:
No.of employees Rs.
If Nil ...................................50
1 to 5...................................100
6 to 10..................................200
11 to 20................................400
21 to 30................................600
31 to 50................................1000
51 to 100...............................2000
101 onwards..........................4000