Good House - Tips

At a time when real estate prices are on the rise, these red flags can be a hindrance.
1. Your main door
Although the main door isn't inside your house, it pretty much gives the first impression of what lies beyond. Surely, you don't need to be Einstein to figure out the importance of having a well-maintained main door. Interior designer Arbasys Ashley says that cleaning doors -- unless they have a zillion stickers of the gods of the world on it -- is the simplest thing to do. "If it's a wooden door, wipe it regularly with a dry cloth. Laminate or PU coated doors can be wiped with semi-wet cloth. That'll help the design looking fresh," he says. It is also important to ensure that you put a thought in designing your main door because first impressions are the ones that last the longest.
2. Clutter when the prospective buyer comes to visit
Even a large house tends to look smaller when cluttered. It's one thing if you like living that way. But chances are that the person coming to buy it does not look at things the way you do. So if you're hoping to sell your house, the first thing you must do is to clear the clutter. Throw away the things you don't require. Stack away the stuff you won't be needing anytime soon and keep only your bare essentials out. Anyway you're selling the house so why keep things for the last moment?
If you are one of those who like things to be in place right from day one, Arbasys suggests you mark out the requirements of storage carefully with your architect. "It ensures that there is definite storage space for everything and all the clutter is well hidden. Avoid clutter even in respect to artefacts. If you cannot display a certain piece, don't! Keep thing to the basic minimum and understated; it makes the place look classy. A home in order makes a large impact to a prospective buyer," he says.
3. Unclean kitchens
Surprising as it may sound, kitchen is the one room that requires the maximum attention in terms of designing. It is also the only 'room' in the house that has a water connection. So trust us when we say maintaining a kitchen can be quite a task. Leaking sinks and walls smeared with your last cooking experiment should be fixed immediately. Owners who give out homes on rent have often had to deal with unclean and terribly maintained kitchens. When you rent out that extra home of yours make sure you give it to the right persons rather than simply looking at the money that will come as rent. Unclean kitchens are huge red flags. It's where the lady of the house spends a lot of time. And if you fail to impress the lady there are little chances the man will go ahead with the deal.
4. Children's graffiti over the walls
Unless you're planning to be a DINK (Double Income No Kids) couple, we'd suggest you take real good care of your walls. Sure kids can be sweet. Heck they are very adorable. But boy don't you hate them when they spoil the wall you spent 20k on?
Not only does kids graffiti look shabby when you're hosting a party, it does not score any brownie points when someone comes over to buy your house. There are two ways of ensuring the safety of your walls -- one is trying to discipline the children and giving them just one wall to display their artistic talents. The other is to take Arbasys' advice and simply cladding a wall with a wipe board so they can fun doing their graffiti and you can wipe it clean when someone drops over.
5. Unclean loos
This one's another major red flag. It shows lack of hygiene but more importantly it is such an assault on your visual senses it's not funny.
Rashmi Deshpande recounts an incident that put her off so much she refused to see another flat in the same building. "I am quite a stickler for cleanliness. And I'm particularly keen on keeping my loo and kitchen area dry. The kitchen had not put me off so much as much as the loo did. There was a good amount of leakage and to say the pot was unclean would be an understatement," she says.
Broker Rekha Mehta, a real estate consultant in Thane says that many owners who rent out their flats to single men face this issue. "Bachelors take little efforts to keep the house clean. Kitchen and loos are the worst maintained in most bachelor pads. That's one of the primary reasons why people avoid renting out their houses to single men."
While we do agree with most of what Mehta says, we think it'd be somewhat unfair to label all single men as messy, unclean people. It would help though, if you do a background check on your prospective tenant before you let him/her live there.
Talk to their previous landlords/ladies and ask them how they were to deal with. That way you know your house will be in safe hands and chances are you won't be sweating over the poorly maintained loo and kitchen while selling it off.
6. The satsang in your neighbour's house
Being religious is okay. But what happens when your neighbour's bhajans become a nuisance? There is no way you can ask them to shut up without raising a controversy in the building. It is pertinent that you bring it to their notice and if they don't relent, the society. CA Cardoz, a secretary of a housing society says that they have a blanket ban on late night music -- religious or otherwise. "We have quite a few senior citizens in the building. So no one is allowed to play loud music beyond a certain time."
7. The building's stairwell
The house may be out of the world. But if the approach to it is less than flattering, chances are that the buyer may chicken out, especially if he is Marc Billimoria a sales manager at a prominent bank.
After looking at the flat, Marc takes the stairs. According to him the stairwell is always a good yardstick to measuring how well maintained a society is. "There have been times when I have loved the house and the view from it but the stairwell is cluttered with garbage bags, beer bottles, unused pieces of furniture and what not. It puts me off because it showed that the callousness of the society members," he says.
Marc agrees that it might be a small thing and young professionals like him rarely spend much time in the house any way. "But the callousness can and usually does extend beyond the stairwell to fixing leakage problems or water shortage issues," he says.
8. The documents not in order
It's one thing if you lose your mark sheet and a completely different story if you cannot find your property papers. Paying stamp duty and registration fees is not an option; it's a rule.
Ensure you've got these two things out of the way when you've bought a property. Vikas Sakpal who recently sold his house in Andheri learnt it the hard way. "We have purchased this place many years ago and were told that it was okay if we paid a part of the stamp duty. We ended up paying a couple of lakh rupees as fine and other charges. That was a huge dent in my pocket," he recollects.
In case of a resale property, insist on seeing the originals of what is called 'chain documents' (papers of ALL the past owners) before making any token payment. Also ensure that the share certificate of the society is in the name of the buyer and no one else.
9. YOU!
It's important that you carry yourself appropriately while approaching the prospective buyer. Rekha Mehta says that she's seen quite a few deals falling through because the owner decided to be a pain.
She says, "One of my clients had liked a house so much, he had given in to almost every demand that the owner was making. The negotiations were in an advanced stage and the buyer was carrying considerable money as a token amount.
But the owner walked in to my office, shabbily dressed, unshaven and listed out a new set of demands. The buyer flinched at first but gave in because he wanted the house desperately. In fact he was even willing to pay more than what was agreed upon earlier.
The final nail in the coffin was when he told the buyer he couldn't move out for the next six months!"
You might think of it as a silly old saying but honesty is indeed the best policy. It is important to be transparent at all times. Also when a buyer approaches you, ensure you're well dressed and carry yourself in an appropriate manner. Think of it as a job interview where the impression you make on the opposite person is crucial. You don't need to lay all your cards on the table. But basic information must be given out to avoid any complications.


Thanks to _____ Rediff.com

EXCEL TIPS

CTRL+( Unhides any hidden rows within the selection.
CTRL+) Unhides any hidden columns within the selection.
CTRL+& Applies the outline border to the selected cells.
CTRL+_ Removes the outline border from the selected cells.
CTRL+~ Applies the General number format.
CTRL+$ Applies the Currency format with two decimal places (negative numbers in parentheses).
CTRL+% Applies the Percentage format with no decimal places.
CTRL+^ Applies the Exponential number format with two decimal places.
CTRL+# Applies the Date format with the day, month, and year.
CTRL+@ Applies the Time format with the hour and minute, and AM or PM.
CTRL+! Applies the Number format with two decimal places, thousands separator, and minus sign (-) for negative values.
CTRL+- Displays the Delete dialog box to delete the selected cells.
CTRL+* Selects the current region around the active cell (the data area enclosed by blank rows and blank columns).In a PivotTable, it selects the entire PivotTable report.
CTRL+: Enters the current time.
CTRL+; Enters the current date.
CTRL+` Alternates between displaying cell values and displaying formulas in the worksheet.
CTRL+’ Copies a formula from the cell above the active cell into the cell or the Formula Bar.
CTRL+” Copies the value from the cell above the active cell into the cell or the Formula Bar.
CTRL++ Displays the Insert dialog box to insert blank cells.
CTRL+1 Displays the Format Cells dialog box.
CTRL+2 Applies or removes bold formatting.
CTRL+3 Applies or removes italic formatting.
CTRL+4 Applies or removes underlining.
CTRL+5 Applies or removes strikethrough.
CTRL+6 Alternates between hiding objects, displaying objects, and displaying placeholders for objects.
CTRL+7 Displays or hides the Standard toolbar.
CTRL+8 Displays or hides the outline symbols.
CTRL+9 Hides the selected rows.
CTRL+0 Hides the selected columns.
CTRL+A Selects the entire worksheet.If the worksheet contains data, CTRL+A selects the current region. Pressing CTRL+A a second time selects the entire worksheet.When the insertion point is to the right of a function name in a formula, displays the Function Arguments dialog box.CTRL+SHIFT+A inserts the argument names and parentheses when the insertion point is to the right of a function name in a formula.
CTRL+B Applies or removes bold formatting.
CTRL+C Copies the selected cells.CTRL+C followed by another CTRL+C displays the Microsoft Office Clipboard.
CTRL+D Uses the Fill Down command to copy the contents and format of the topmost cell of a selected range into the cells below.
CTRL+F Displays the Find dialog box.SHIFT+F5 also displays this dialog box, while SHIFT+F4 repeats the last Find action.
CTRL+G Displays the Go To dialog box.F5 also displays this dialog box.
CTRL+H Displays the Find and Replace dialog box.
CTRL+I Applies or removes italic formatting.
CTRL+K Displays the Insert Hyperlink dialog box for new hyperlinks or the Edit Hyperlink dialog box for selected existing hyperlinks.
CTRL+L Displays the Create List dialog box.
CTRL+N Creates a new, blank file.
CTRL+O Displays the Open dialog box to open or find a file.CTRL+SHIFT+O selects all cells that contain comments.
CTRL+P Displays the Print dialog box.
CTRL+R Uses the Fill Right command to copy the contents and format of the leftmost cell of a selected range into the cells to the right.
CTRL+S Saves the active file with its current file name, location, and file format.
CTRL+U Applies or removes underlining.
CTRL+V Inserts the contents of the Clipboard at the insertion point and replaces any selection. Available only after you cut or copied an object, text, or cell contents.
CTRL+W Closes the selected workbook window.
CTRL+X Cuts the selected cells.
CTRL+Y Repeats the last command or action, if possible.
CTRL+Z Uses the Undo command to reverse the last command or to delete the last entry you typed.CTRL+SHIFT+Z uses the Undo or Redo command to reverse or restore the last automatic correction when AutoCorrect Smart Tags are displayed.



F1 Displays the Help task pane.CTRL+F1 closes and reopens the current task pane.ALT+F1 creates a chart of the data in the current range.ALT+SHIFT+F1 inserts a new worksheet.
F2 Edits the active cell and positions the insertion point at the end of the cell contents. It also moves the insertion point into the Formula Bar when editing in a cell is turned off.SHIFT+F2 edits a cell comment.
F3 Pastes a defined name into a formula.SHIFT+F3 displays the Insert Function dialog box.
F4 Repeats the last command or action, if possible.CTRL+F4 closes the selected workbook window.
F5 Displays the Go To dialog box.CTRL+F5 restores the window size of the selected workbook window.
F6 Switches to the next pane in a worksheet that has been split (Window menu, Split command).SHIFT+F6 switches to the previous pane in a worksheet that has been split.CTRL+F6 switches to the next workbook window when more than one workbook window is open.Note When the task pane is visible, F6 and SHIFT+F6 include that pane when switching between panes.
F7 Displays the Spelling dialog box to check spelling in the active worksheet or selected range.CTRL+F7 performs the Move command on the workbook window when it is not maximized. Use the arrow keys to move the window, and when finished press ESC.
F8 Turns extend mode on or off. In extend mode, EXT appears in the status line, and the arrow keys extend the selection.SHIFT+F8 enables you to add a non-adjacent cell or range to a selection of cells by using the arrow keys.CTRL+F8 performs the Size command (on the Control menu for the workbook window) when a workbook is not maximized.ALT+F8 displays the Macro dialog box to run, edit, or delete a macro.
F9 Calculates all worksheets in all open workbooks.F9 followed by ENTER (or followed by CTRL+SHIFT+ENTER for array formulas) calculates the selected a portion of a formula and replaces the selected portion with the calculated value.SHIFT+F9 calculates the active worksheet.CTRL+ALT+F9 calculates all worksheets in all open workbooks, regardless of whether they have changed since the last calculation.CTRL+ALT+SHIFT+F9 rechecks dependent formulas, and then calculates all cells in all open workbooks, including cells not marked as needing to be calculated.CTRL+F9 minimizes a workbook window to an icon.
F10 Selects the menu bar or closes an open menu and submenu at the same time.SHIFT+F10 displays the shortcut menu for a selected item.ALT+SHIFT+F10 displays the menu or message for a smart tag. If more than one smart tag is present, it switches to the next smart tag and displays its menu or message.CTRL+F10 maximizes or restores the selected workbook window.
F11 Creates a chart of the data in the current range.SHIFT+F11 inserts a new worksheet.ALT+F11 opens the Visual Basic Editor, in which you can create a macro by using Visual Basic for Applications (VBA).ALT+SHIFT+F11 opens the Microsoft Script Editor, where you can add text, edit HTML tags, and modify any script code.
F12 Displays the Save As dialog box.


ARROW KEYS Move one cell up, down, left, or right in a worksheet.CTRL+ARROW KEY moves to the edge of the current data region (data region: A range of cells that contains data and that is bounded by empty cells or datasheet borders.) in a worksheet.SHIFT+ARROW KEY extends the selection of cells by one cell.CTRL+SHIFT+ARROW KEY extends the selection of cells to the last nonblank cell in the same column or row as the active cell.LEFT ARROW or RIGHT ARROW selects the menu to the left or right when a menu is visible. When a submenu is open, these arrow keys switch between the main menu and the submenu.DOWN ARROW or UP ARROW selects the next or previous command when a menu or submenu is open.In a dialog box, arrow keys move between options in an open drop-down list, or between options in a group of options.

ALT+DOWN ARROW opens a selected drop-down list.

BACKSPACE Deletes one character to the left in the Formula Bar.Also clears the content of the active cell.

DELETE Removes the cell contents (data and formulas) from selected cells without affecting cell formats or comments.In cell editing mode, it deletes the character to the right of the insertion point.

END Moves to the cell in the lower-right corner of the window when SCROLL LOCK is turned on.Also selects the last command on the menu when a menu or submenu is visible.CTRL+END moves to the last cell on a worksheet, in the lowest used row of the rightmost used column.CTRL+SHIFT+END extends the selection of cells to the last used cell on the worksheet (lower-right corner).

ENTER Completes a cell entry from the cell or the Formula Bar, and selects the cell below (by default).In a data form, it moves to the first field in the next record.Opens a selected menu (press F10 to activate the menu bar) or performs the action for a selected command.In a dialog box, it performs the action for the default command button in the dialog box (the button with the bold outline, often the OK button).ALT+ENTER starts a new line in the same cell.CTRL+ENTER fills the selected cell range with the current entry.SHIFT+ENTER completes a cell entry and selects the cell above.

ESC Cancels an entry in the cell or Formula Bar.It also closes an open menu or submenu, dialog box, or message window.

HOME Moves to the beginning of a row in a worksheet.Moves to the cell in the upper-left corner of the window when SCROLL LOCK is turned on.Selects the first command on the menu when a menu or submenu is visible.CTRL+HOME moves to the beginning of a worksheet.CTRL+SHIFT+HOME extends the selection of cells to the beginning of the worksheet.

PAGE DOWN Moves one screen down in a worksheet.ALT+PAGE DOWN moves one screen to the right in a worksheet.CTRL+PAGE DOWN moves to the next sheet in a workbook.CTRL+SHIFT+PAGE DOWN selects the current and next sheet in a workbook.

PAGE UP Moves one screen up in a worksheet.ALT+PAGE UP moves one screen to the left in a worksheet.CTRL+PAGE UP moves to the previous sheet in a workbook.CTRL+SHIFT+PAGE UP selects the current and previous sheet in a workbook.

TAB Moves one cell to the right in a worksheet.Moves between unlocked cells in a protected worksheet.Moves to the next option or option group in a dialog box.SHIFT+TAB moves to the previous cell in a worksheet or the previous option in a dialog box.CTRL+TAB switches to the next tab in dialog box.CTRL+SHIFT+TAB switches to the previous tab in a dialog box.

7 reasons why wife must know about finances

Thanks to Rediff.com

Are you the person in the family with the sole responsibility of maintaining the household finances? Is your spouse completely oblivious of what's happening?
God forbid, but what if for some reason you can no longer manage the budget? Or what if you're just tired of managing everything yourself, and want your partner to become more involved in your household's finances? How do you teach her everything you know?
This is the time to sit down and stress on the importance of your partner needing to be aware of all important financial information. This may not be the most entertaining of activities, but it is the key to taking the best possible care of one of the most important people in your life.
1. Make a list of everything and where they are located
While you may be an open book for each other, don't assume your other half possesses the intuition to know where you keep sensitive information.
While you may think your filing system is the most organized one that one can ever come across, and that your financial records are in a pretty obvious location, your partner may not think so.
So what is the first thing you should do? Present your partner with a list of logins, passwords of all of your accounts making it easy to see everything that needs to be addressed. Keep it of course in a safe and secure location.
2. Discuss transparency regarding investment info, emergency funds and bank accounts
Your partner may be under the false impression that not knowing the details of your family finances will reduce stress.
That's not the case. Explain to him/her that sharing knowledge and responsibility for your financial life reduces stress as it makes you ready for any situation that may arise when one is unable to operate.
In times of emergency like a long absence or medical emergency or death - this info then becomes the most important thing.
3. Awareness of all financial dealings is a must
Your partner should know all your financial dealings so that there are no rude surprises. So sit down and review your financial situation together - cash in the bank, investments, equity in your home, mortgages, credit card debt, and any other liabilities you may have. Review your budget together.
Being aware of all financial dealings has a couple of benefits. First, you make better decisions when you collaborate.
Second, you share responsibility for the outcomes -- good and bad -- which means that he/she is never in the dark about where you stand. And this eliminates a lot of the tension that inevitably results when one party knows a lot less than the other.
4. Have your partner watch you handle the finances
Educate your partner on how to handle finances. Let him or her watch and learn.
Explaining things is helpful, and written instructions/checklists/spreadsheets are even better, but nothing beats sitting down with your partner and talking through actually managing the finances.
Let your partner observe the process while you explain it, and then have him or her practice it with your help and guidance.
5. Gradually give your partner some financial responsibility
If your partner hasn't handled the money at all, start off with a small, manageable task - preferably one with low stakes. As he or she becomes more adept, give additional tasks to manage.
Eventually, have your partner handle all the finances for one month (with your supervision, of course). Then, try switching off months, with your partner handling the finances every other month until you both feel completely comfortable.
6. Discuss contingency plans
Make sure your partner knows what you would do in an emergency or unplanned financial event. Don't keep it conceptual - discuss actual, concrete strategies to handle unplanned events.
If there is a sudden loss of income, which bills would need to be prioritized, and which expenses could be reduced or dropped altogether? What are your savings priorities? If there is an accident which account do you access before you get benefits from your insurance? Is there any charity to which you would donate a significant sum?
On a lighter note, if you win a lottery (the ticket of which you have just bought with his/ her consent) which debts do you clear?
7. Maintain a household budget
You may not be the type who needs to write everything down to successfully manage your money, but a budget is an excellent way to give your partner a big-picture idea of all the money in play - the income, the debts, the recurring expenses, the investments and so on.
It can also help your partner pick up where you left off in managing the household's finances if you die or become incapacitated.
So, start encouraging him/her to start making a budget plan. Soon you will find that both of you are enjoying it and life is becoming a real partnership.

Thanks to Rediff.com

Gist of Labour Laws

APPRENTICES ACT, 1961
CHECKLIST
Object of the Act
Promotion of new manpower at skills.
Improvement/refinement of old skills through theoretical and practical training in number of trades and occupation.
Industry
Industry means any industry, or business or in which any trade, occupation or subject/field in engineering or technology or any vocational course may be specified
as a designated trade
Sec. 2(k)
Contract of Apprenticeship
To contain such terms and conditions as may be agreed to by the apprentice, or his guardian (in case he is a minor) and employers.
Sec. 4
Termination of Apprenticeship
On the expiry of the period of Apprenticeship training.
On the application by either of the parties to the contract to the Apprenticeship Advisor
Sec. 6
Payment to Apprentices
The employer to pay such stipend at a rate of not less than the prescribed minimum rate as may be specified.
Sec. 6
Obligations of Apprentice
 To learn his trade conscientiously, diligently.
 To attend practical and instructional classes regularly.
 To carry out all lawful orders.
 To carry out his contractual obligations.
Health safety & Welfare measures for Apprentices
As per Factories Act or Mines Act as the case may be when undergoing training.
Hours of work
 42 to 48 in a week while on theoretical training.
 42 in a week while on basic training.
 42 to 45 in a week in second year of training.
 As per other workers (in the third year).
 Not allowed to work between 10 PM to 4 AM unless approved by
Apprenticeship Advisor.
Leave and Holidays
 Casual leave for the maximum period of 12 days in a year.
 Medical leave for the maximum period of 15 days and the accumulated leave upto 40 days in a year.
 Extraordinary leave upto a maximum period of 10 days in a year.
Sec. 15
Applicability of the Act
Areas and industries as notified by the Central Government
Sec. 1
Apprenticeship Advisor
Central Apprenticeship Advisor – when appointed by Central Government.
Sec. 2(b)
Qualification for being trained as an Apprentice
A person cannot be an apprentice in any designated trade unless
 He is not more than 14 years of age;
 He satisfies such standard of education
And physical fitness as May be prescribed. Sec. 3
Conditions for Novation of Contract of Apprenticeship
 There exists an apprenticeship contract.
 The employer is unable to fulfil his obligation.
 The approval of the Apprenticeship Advisor is obtained.
 Agreement must be registered with the Apprenticeship Advisor.
Sec. 5
Period of Apprenticeship Training to be Determined by the National Council
Obligations of employers
 To Provide the apprentice with the training in his trade.
 To ensure that a person duly qualified is placed in charge of the training of the apprentice.
 To carry out contractual obligations.
Sec. 11
Number of Apprentices in Designated Trade To be determined by The Central Government after consulting the Central Apprenticeship Council
Sec.8
Employer’s liability to pay compensation for injury As per provisions of Workmen’s Compensation Act.
Sec. 16
Offences & Punishment Imprisonment of a term upto 6 months or with fine when employer (I) engages as an apprentice a person who is not qualified for being so engaged
or (ii) fails to carry out the terms and conditions of a contract of apprenticeship, or
(iii) contravenes the provisions of the Act relating to the number of apprentices which he is required to engage under those provisions
Secs. 30 & 31

Licensing of Contractor
 Engaging 20 or more than 20 workers and on deposit of required fee in Form IV.
 Valid for specified period.
Sec.12, Rule 21

CONTRACT LABOUR(REGULARATION & ABOLITION) ACT,1970
& THE RULES CHECKLIST
Applicability
 Every establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labour.
 Every contractor who employs or who employed on any day of the preceding
twelve months 20 or more workmen.
Sec. 1
Object of the Act
To regulate the employment of contract labour in certain establishments and to
provide for its abolition in certain circumstances and for matters connected
therewith.
Prohibition of Employment of Contract Labour
Only by the appropriate Government through issue of notification after consultation with the Board (and not Courts)can order the prohibition of employment of contract labour.
Sec. 10
Registers of Contractors
 Principal employer
 To maintain a register of contractor in respect of every establishment in Form
XII.
 Contractor Rule 74
 To maintain register of workers for each registered establishment in Form XIII.
 To issue an employment card to each worker in Form XIV.
 To issue service certificate to every workman on his termination in Form
XV.
Rules 75, 76 and 77
Muster Roll, Wages Register, Deduction Register and Overtime Register by Contractor
 Every contractor shall
 Maintain Muster Roll and a Register of Wages in Form XVI and Form XVII respectively
when combined.
 Register or wage-cum-Muster Roll in Form XVII where the wage period is a fortnight or less.
 Maintain a Register of Deductions for damage or loss, Register or Fines and register of Avances in Form XX, from XXI and Form XXII respectively.
 Maintain a Register of Overtime in Form XXIII.
 To issue wage slips in Form XIX, to the workmen at least a day prior to the disbursement of wages.
 Obtain the signature or thumb impression of the worker concerned against the entries relating to him on the Register of wages or Muster Roll-Cum-Wages Register.
 When covered by Payment of Wages Act, register and records to be maintained under
the rules
 Muster Roll, Register of wages, Register of Deductions, Register of Overtime, Register of Fines, Register of Advances, Wage slip. Rule 79
 To display an abstract of the act and Rules in English and Hindi and in the language spoken by the Majority of workers in such forms as may be approved by appropriate authority Rule 80
 To display notices showing rates of wages, hours of work, wage period, dates of
payment, names and addresses of the inspector and to send copy to the inspector and
any change forwithwith Rule 81
Registration of Establishment
Principal employer employing 20 or more workers through the contractor or the contractor(s) on deposit of required fee in Form 1
Sec. 7
Revocation of Registration
When obtained by Misrepresentation or suppression Of material facts etc. after opportunity to the principal employer
Sec. 9
Revocation or Suspension &
Amendment of Licences
 When obtained by misrepresentation or suppression of material facts.
 Failure of the contractor to comply with the conditions or contravention of Act or
the Rules.
Sec. 14
Welfare measures to be taken by the Contractor  Contract labour either one hundred or more employed by a contractor for one or more canteens shall be provided and maintained.
 First Aid facilities.
 Number of rest-rooms as required under the Act.
 Drinking water, latrines and washing facilities.
Sec. 16 & 17
Laws, Agreement or standing orders inconsistent with the Act- Not Permissible
Unless the privileges in the contract between the parties or more favourable
than the prescribed in the Act, such contract will be invalid and the workers will
continue to get more favourable benefits.
Sec. 20
Liability of Principal Employer
 To ensure provision for canteen, restrooms, sufficient supply of drinking
water, latrines and urinals, washing facilities.
 Principal employer entitled to recover from the contractor for providing such
amenities or to make deductions from amount payable. Sec. 20
PENALTIES
Sec. Offence Punishment
Sec. 22 Obstructions For obstructing the inspector or failing to produce registers etc.
- 3 months’ imprisonment or fine upto Rs.500, or both.
Sec.23 Violation For violation of the provisions of Act or the Rules, imprisonment of 3
Months or fine upto Rs.1000. On continuing contravention, additional fine
upto Rs.100 per day

EMPLOYEES’ PROVIDENT FUNDS & MISC. PROVISIONS ACT, 1952
& THE SCHEMES
CHECKLIST
Applicability
 Every establishment which is factory engaged in any industry specified in
Schedule 1 and in which 20 or more persons are employed.
 Any other establishment employing 20 or more persons which Central
Government may, by notification, specify in this behalf.
 Any establishment employing even less than 20 persons can be covered
voluntarily u/s 1(4) of the Act.
Eligibility
Any person who is employed for
work of an establishment or
employed through contractor in
or in connection with the work of
an establishment.
Clarification about Contribution
After revision in wage ceiling from
Rs.5000 to Rs.6500 w.e.f. 1.6.2001 per
month, the government will continue to
contribute 1.16% upto the actual wage
of maximum Rs.6500 per month
towards Employees’ Pension Scheme.
The employer’s share in the Pension
Scheme will be Rs.541 w.e.f. 1.6.2001.
Under Employees’ Deposit-Linked
Insurance Scheme the contribution @
0.50% is required to be paid upto a
maximum limit of Rs.6500.
The employer also will pay
administrative charges @ 0.01% on
maximum limit of Rs.6500 whereas an
exempted establishment will pay
inspection charges @ 0.005% on the
total wages paid.
Notes:
The above clarification is given by taking
wages upto a maximum of Rs.6500
towards wage (basic+DA).
Since an excluded employee i.e.
drawing wages more than Rs.6500 can
also become member of the Fund and
the Schemes on joint request and if, for
instance, such an employee is getting
Rs.10,000 per month, his share towards
provident fund contribution will be
Rs.1200 e.g. 12% and employer’s share
towards provident fund contributioin will
be Rs.659 and Rs.541 towards
Employees’ Pension Fund.
Benefits
Employees covered enjoy a benefit of Social Security in the form of an
unattachable and unwithdrawable (except in severely restricted circumstances
like buying house, marriage/education, etc.) financial nest egg to which
employees and employers contribute equally throughout the covered persons’
employment.
This sum is payable normally on retirement or death. Other Benefits include
Employees’ Pension Scheme and Employees’ Deposit Linked Insurance Scheme.
Payment of Contribution
 The employer shall pay the
contribution payable to the EPF,
DLI and Employees’ Pension Fund
in respect of the member of the
Employees’ Pension Fund
employed by him directly by or
through a contractor.
 It shall be the responsibility of the
principal employer to pay the
contributions payable to the EPF,
DLI and Employees’ Pension Fund
by himself in respect of the
employees directly employed by
him and also in respect of the
employees directly employed by
him and also in respect of the
employees employed by or through
a contractor.
Rates of Contribution
SCHEME EMPLOYEE’S EMPLOYER’S CENTRAL GOVT’S
Provident Fund
Scheme 12%
Amount > 8.33%
(in case where
contribution is 12%
of 10%)
10% (in case of
certain
Establishments as
per details given
earlier)
NIL
Insurance
Scheme NIL 0.5 NIL
Pension Scheme NIL
8.33% (Diverted
out of Provident
Fund
1.16%
Damages
 Less than 2 months ….@ 17% per annum
 Two months and above but less than upto four months ….@22% per annum
 Four months and above but less than upto six months ….@ 27% per annum
 Six months and above
Penal Provision
Liable to be arrested without warrant being a cognisable offence.
Defaults by employer in paying contributions or inspection/administrative
charges attract imprisonment upto 3 years and fines upto Rs.10,000 (S.14). For
any retrospective application, all dues have to be paid by employer with
damages upto 100% of arrears.
Kumar’s
EMPLOYEES’ STATE INSURANCE
ACT, 1948 & the SCHEME
CHECK LIST
Applicability of
the Act & Scheme
Is extended in areawise
to factories using
power and employing
10 or more persons
and to non-power
using manufacturing
units and establishments
employing 20
or more person upto
Rs.7500/- per month
w.e.f. 1.4.2004. It
has also been extended
upon shops,
hotels, restaurants,
roads motor transport
undertakings, equipment
maintenance
staff in the hospitals.
Coverage
of employees
Drawing wages
upto Rs.10000/-
per month
engaged either
directly or thru’
contractor
Rate of
Contribution of
the wages
Employers’ 4.75%
Employees’ 1.75%
THE ESI SCHEME TODAY
No. of implemented Centres 677
No. of Employers covered 2.38 lacs
No. of Insured Persons 85 lacs
No. of Beneficiaries 330 lacs
No. of Regional Offices/SRO’s 26
No. of ESI Hospitals/Annexes 183
No. of ESI Dispensaries 1453
No. of Panel Clinics 2950
Manner and Time Limit
for making Payment of contribution
The total amount of contribution (employee’s
share and employer’s share) is to be deposited
with the authorised bank through a challan in
the prescribed form in quadruplicate on ore
before 21st of month following the calendar
month in which the wages fall due.
Benefits
To the employees under the Act
Medical, sickness, extended sickness
for certain diseases, enhanced
sickness, dependents maternity,
besides funeral expenses, rehabilitation
allowance, medical benefit to insured
person and his or her spouse.
WAGES FOR ESI CONTRIBUTIONS
Registers/files to be maintained by the employers
To be deemed as wages
 Basic pay
 Dearness allowance
 House rent allowance
 City compensatory
allowance
 Overtime wages (but not
to be taken into account
for determining the
coverage of an employee)
 Payment for day of rest
 Production incentive
 Bonus other than
statutory bonus
 Night shift allowance
 Heat, Gas & Dust
allowance
 Payment for unsubstituted
holidays
 Meal/food allowance
 Suspension allowance
 Lay off compensation
 Children education
allowance (not being
reimbursement for actual
tuition fee)
NOT to be deemed as
wages
 Contribution paid by kthe
employer to any
pension/provident fund or
under ESI Act.
 Sum paid to defray special
expenses entailed by the
nature of employment –
Daily allowance paid for
the period spent on tour.
 Gratuity payable on
discharge.
 Pay in lieu of notice of
retrenchment
compensation
 Benefits paid under the
ESI Scheme.
 Encashment of leave
 Payment of Inam which
does not form part of the
terms of employment.
 Washing allowance for
livery
 Conveyance Amount
towards reimbursement
for duty related journey
Contribution
period
1st April to 30th
September.
1st October to 31st
March
Contribution
period
If the person joined
insurance employment for
the first time, say on 5th
January, his first
contribution period will be
from 5th January to 31st
March and his
corresponding first benefit
will be from 5th October to
31st December.
Penalties
Different punishment have been prescribed for different
types of offences in terms of Section 85: (I) (six
months imprisonment and fine Rs.5000), (ii) (one year
imprisonment and fine), and 85-A: (five years
imprisonment and not less to 2 years) and 85-C(2) of
the ESI Act, which are self explanatory. Besides these
provisions, action also can be taken under section 406
of the IPC in cases where an employer deducts
contributions from the wages of his employees but
does not pay the same to the corporation which
amounts to criminal breach of trust.
Kumar’s
FACTORIES ACT, 1948
CHECK LIST
OFFENCE PENALTIES Sec.92 to
 For contravention of the Provisions of the Act or Rules  Imprisonment upto 2 years or fine upto Rs.1,00,000 or both
 On Continuation of contravention  Rs.1000 per day
 On contravention of Chapter IV pertaining to safety or
dangerous operations.
 Not less than Rs.25000 in case of death.
 Not less than Rs.5000 in case of serious injuries.
 Subsequent contravention of some provisions  Imprisonment upto 3 years or fine not less than Rs.10,000
which may extend to Rs.2,00,000.
 Obstructing Inspectors  Imprisonment upto 6 months or fine upto Rs.10,000 or
both.
 Wrongful disclosing result pertaining to results of analysis.  Imprisonment upto 6 months or fine upto Rs.10,000 or
both.
 For contravention of the provisions of Sec.41B, 41C and
41H pertaining to compulsory disclosure of information by
occupier, specific responsibility of occupier or right of
workers to work imminent danger.
 Imprisonment upto 7 years with fine upto Rs.2,00,000 and
on continuation fine @ Rs.5,000 per day.
 Imprisonment of 10 years when contravention continues
for one year.
Applicability of the Act
Any premises whereon 10 or
more persons with the aid of
power or 20 or more workers
are/were without aid of power
working on any dayd preceding
12 months, wherein Manufacturing
process is being carried on.
Sec.2(ii)
Employer to ensure health of
workers pertaining to
 Cleanliness Disposal of wastes and
effluents
 Ventilation and temperature dust and
fume
 Overcrowding Artificial humidification
Lighting
 Drinking water Spittons.
Secs. 11 to 20
Safety Measures
 Facing of machinery
 Work on near machinery in motion.
 Employment prohibition of young persons
on dangerous machines.
 Striking gear and devices for cutting off
power.
Welfare Measures
 Washing facilities
 Facilities for storing and drying
clothing
 Facilities for sitting
 First-aid appliances – one first aid
box not less than one for every
150 workers.
 Canteens when there are 250 or
more workers.
 Shelters, rest rooms and lunch
rooms when there are 150 or more
workers.
 Creches when there are 30 or
more women workers.
 Welfare office when there are 500
or more workers.
Registration & Renewal
of Factories
To be granted by Chief
Inspector of Factories on
submission of prescribed
form, fee and plan.
Secs. 6
 Self-acting machines.
 Casing of new machinery.
 Prohibition of employment of
women and children near
cotton-openers.
 Hoists and lifts.
Working Hours, Spread Over & Overtime of Adults
Weekly hours not more than 48.
Daily hours, not more than 9 hours.
Intervals for rest at least ½ hour on working for 5 hours.
Spreadover not more than 10½ hours.
Overlapping shifts prohibited.
Extra wages for overtime double than normal rate of wages.
Restrictions on employment of women before 6AM and beyond 7 PM.
Secs. 51, 54 to 56, 59 & 60
Employment of Young Persons
 Prohibition of employment of young children e.g. 14 years.
 Non-adult workers to carry tokens e.g. certificate of fitnekss.
 Working hours for children not more than 4 ½ hrs. and not permitted to
work during night shift.
Secs. 51, 54 to 56, 59 & 60
Annual Leave with Wages
A worker having worked for 240 days @
one day for every 20 days and for a child
one day for working of 15 days.
Accumulation of leave for 30 days.
Secs. 79
Kumar’s
EMPLOYMENT EXCHANGES
(COMPULSORY NOTIFICATION OF VACANCIES)
ACT, 1959 & THE RULES
CHECK LIST
Object of the Act
To provide for the
compulsory
notification of
vacancies to
employment
exchanges.
Applicability of the Act
By notification in the Official
Gazette, appoint in this
behalf for such State and
different dates may be
appointed for different states
or for different areas of a
State.
When Act is not applicable
 Any employment in agriculture,
horticulture etc.
 Any employment in domestic service.
 Any employment, the total duration of
which is less than three months.
 Any employment to do unskilled office
work.
 Any employment connected with the
staff of Parliament.
Sec. 3
Notification of vacancies to Employment Exchanges
Before filling up any vacancy as prescribed.
Employer not obliged to recruit the person through employment
exchange.
To notify the vacancies to such employment exchanges as may be
prescribed.
Secs. 4
Time limit for notification of vacancies & selection
 Atleast 15 days before the applicants will be interviewed or tested.
 Employer to furnish the result of selection within 15 days.
Rules 5
Submission of Returns
 Quarterly in Form ER-I
 BIENNIAL Return Form ER-II
 Within 30 days by 30th June, 31st
March, 30th September & 31st
December.
Rule 6
Furnishing information and
returns
The employer in every establishment
in public sector in that State or area
shall furnish such information or return
as may be prescribed in relation to
vacancies that have occurred or are
about to occur in that establishment,
to such employment exchanges as
may be prescribed.
Secs. 5
 An employer contravening the provisions of Sec.4(1) or (2).
 Fine upto Rs.500 for first offence and for every subsequent offence fine Rs.1000.
 If any person –
 Required to furnish any information or return –
 Refuses or neglects to furnish such information or return, or
 Furnishes or causes to be furnished any information or return which he knows to be false, or
 Refuses to answer, or gives a false answer to any question necessary for obtaining any information required to be
furnished under section 5; or
 Impedes the right of access to relevant records or documents or the right of entry conferred by section 6; he shall be
punishable for the first offence with fine upto Rs.250 and for every subsequent offence with fine upto Rs.250 and for
every subsequent offence with fine upto Rs.500. Rules 7
PENALTIES
Kumar’s
INDUSTRIAL DISPUTES ACT, 1947
INDUSTRIAL EMPLOYMENT
Prohibition of Strikes & Lock Outs
 During the pendency of proceedings before a Labour Court,
Tribunal or National
 Tribunal and two months, after the conclusion of such
proceedings.
 During the pendency of arbitration proceedings before an
arbitrator and two months after the conclusion of such
proceedings, where a notification has been issued under
Sub-Section(3A) of section 10A
 During any period in which a settlement or award is in
operation, in respect of any of the matters covered by the
settlement or award. Secs.22&23
Object of the Act
Provisions for investigation and settlement of industrial disputes and for certain other purposes.
Important Clarifications
Industry – has attained wider meaning than defined
except for domestic employment, covers from barber
shops to big steel companies. Sec.2(I)
Works Committee–Joint Committee with equal number
of employers and employees’ representatives for
discussion of certain common problems. Sec.3
Conciliation–is an attempt by a third party in helping to
settle the disputes Sec.4
Adjudication – Labour Court, Industrial Tribunal or
National Tribunal to hear and decide the dispute.
Secs.7,7A & 7B
Power of Labour Court to give
Appropriate Relief
Labour Court/Industrial Tribunal can
Modify the punishment of dismissal or
discharge of workmen and give appropriate
relief including reinstatement. Sec.11A
Right of a Workman during Pendency
of Proceedings in High Court
Employer to pay last drawn wages to
reinstated workman when proceedings
challenging the award of his
reinstatement are pending in the
higher Courts. Sec.17B
Persons Bound by Settlement
 When in the course of conciliation
proceedings etc., all persons working
or joining subsequently.
 Otherwise than in course of
settlement upon the parties to the
settlement. Sec.18
Period of Operation of
Settlements and Awards
 A settlement for a period as
agreed by the parties, or
 Period of six months on signing
of settlement.
 An award for one year after its
enforcement. Sec.19
Lay off & Payment of Compensation –
Conditions for Laying off
Failure, refusal or inability of an employer to provide
work due to
 Shortage of coal, power or raw material.
 Accumulation of stocks.
 Breakdown of machinery.
 Natural calamity. Sec.25-C
Notice of Change
21 days by an employer to workmen
about changing the conditions of service
as provided in Ivth Schedule. Sec.9A
 Without giving to the employer notice of strike, as
hereinafter provided, within six weeks before striking.
 Within fourteen days of giving such notice.
 Before the expiry of the date of strike specified in any
such notice as aforesaid.
 During the pendency of any conciliation proceedings
before a conciliation officer and seven days after the
conclusion of such proceedings.
 During the pendency of conciliation proceedings before
a Board and seven days after the conclusion of such
proceedings.
Lay off Compensation
Payment of wages except for
intervening weekly holiday
compensation 50% of total or
basic wages and DA for a period
of lay off upto maximum 45 days
in a year. Sec.25-C
Prior Permission for Lay off
When there are more than 100
workmen during proceeding 12
months. Sec.25-M
Retrenchment of Workmen Compensation & Conditions
 Workman must have worked for 240 days.
 Retrenchment compensation @ 15 days’ wages for every completed year to be calculated at last drawn wages
 One month’s notice or wages in lieu thereof.
 Reasons for retrenchment
 Complying with principle of ‘last come first go’.
 Sending Form P to Labour Authorities.
Prior Permission by the
Government for Retrenchment
 When there are more than 100 (in
UP 300 or more) workmen during
preceding 12 months.
 Three months’ notice or wages
thereto.
 Form QA
 Compensation @ 15 days’ wages.
Sec. 25-N
Conditions of service etc. to remain unchanged under certain circumstances during pendency of proceedings
 Not to alter to the prejudice of workmen concerned the condition of service.
 To seek Express permission of the concerned authority by paying one month’s wages on dismissal, discharge
or punish a protected workman connected with the dispute.
 To seek approval of the authority by paying one month’s wages before altering condition of service, dismissing
or discharging or punishing a workman. Sec.33
Conditions of service etc. to remain unchanged under certain circumstances during pendency of proceedings
 Not to alter to the prejudice of workmen concerned the condition of service.
 To seek Express permission of the concerned authority by paying one month’s wages on dismissal, discharge or punish a
protected workman connected with the dispute.
 To seek approval of the authority by paying one month’s wages before altering condition of service, dismissing or discharging
or punishing a workman. Sec.33
Prohibition of unfair labour
practice either by employer or
workman or a trade union as
stipulated in fifth schedule
Both the employer and the Union can
be punished. Sec.25-T
Closure of an Undertaking
60 days’ notice to the labour authorities for
intended closure in Form QA. Sec.25FFA
Prior permission atleast 90 days before in
Form O by the Government when there are
100 ore more workmen during preceding 12
months (in UP 300 or more workmen)
Sec.25-O
PENALTIES Offence
Committing unfair labour practices
Illegal strike and lock-ourts
Instigation etc. for illegal strike or lock-outs.
Giving financial aid to illegal strikes and lock-outs.
Breach of settlement or award
Disclosing confidential information pertaining to Sec.21
Closure without 60 days’ notice under Sec.25 FFA
Contravention of Sec.33 pertaining to change of conditions of
Service during pendency of dispute etc.
When no penally is provided for contravention
Punishment
Imprisonment of upto 6 months or with fine upto Rs.3,000.
Imprisonment upto one month or with fine upto Rs.50(Rs.1000 for lock-out) or
with both.
Imprisonment upto 6 months or with fine upto Rs.1,000
Imprisonment for 6 months or with fine upto Rs.1,000
Imprisonment upto 6 months or with fine.On continuity of offence fine
uptoRs.200 per day
Imprisonment upto 6 months or with fine upto Rs.1,000
Imprisonment upto 6 months or with fine upto Rs.5,000
Imprisonment upto 6 months or fine upto Rs.1,000. Fine upto Rs.100
Sec.25-U
26
27
28
29
30
31A
31
Kumar’s
(STANDING ORDERS) ACT, 1946 & THE RULES
CHECK-LIST
Applicability of
the Act
Every industrial
establishment
wherein 100 or more
(in many States it is
50 or more).
Any industry covered
by Bombay
Industrial Relations
Act, 1946.
Industrial
establishment
covered by M.P.
Industrial
Employment
(Standing Orders)
Act, 1961.
Sec. 1
Matters to be provided in Standing orders
Classification of workmen, e.g., whether permanent, temporary, apprentices,
probationers, or badlis.
Manner of intimating to workmen periods and hours of work, holidays, pay-days and
wage rates.
Shift working.
Attendance and late coming.
Conditions of, procedure in applying for, and the authority which may grant, leave and
holidays.
Requirement to enter premises by certain gates, and liability to search.
Closing and re-opening of sections of the industrial establishments, and temporary
stoppages of work and the right and liabilities of the employer and workmen arising
therefrom.
Termination of employment, and the notice thereof to be given by employer and
workmen.
Suspension or dismissal for misconduct, and acts or omissions which constitute
misconduct.
Means of redressal for workmen against unfair treatment or wrongful exactions by the
employer or his agents or servants.
Additional Matters
Service Record – Matters relating to service card, token tickets, certification of service,
change of residential address of workers and record of age Confirmation Age of
retirement Transfer Medical aid in case of Accident Medical Examination Secrecy
Exclusive service.
Secs.2(g), 3(2) and Rule 2A
Conditions for
Certification of
Standing Orders
 Every matter to be
set out as per
Schedule and Rule
2A.
 The standing orders
to be in conformity
with the provisions
of the Act.
Submissions of
Draft Standing
Orders
Within six months from
the date when the Act
becomes applicable to
an industrial
establishment. Five
copies of the draft
Standing Orders are to
be submitted to the
Certifying Officer under
the Act.
Sec.3
 Failure of employer to submit draft Standing Orders fine of Rs.5000 and Rs.200 for every day on continuation of
offence.
 Fine of Rs.100 on contravention and on continuation of offence Rs.25 for every day.
Procedure for
Certification of Standing
Orders
Certifying Officer to forward
a copy of draft standing
orders to the trade union or
in the absence of union, to
the workmen of the
industry. The trade union or
the other representatives, as
the case may be, are to be
heard.
Sec.5
Date of
Operation of
Standing Orders
On the date of
expiry of 30 days
from certification or
on the expiry of 7
days from
authentication of
Standing Orders.
Sec. 7
Posting of Standing
Orders
The text of the standing
orders as finally certified
shall prominently be
posted in English or in the
language understood by
majority of workmen on
special board at or near
the entrance for majority
of workers.
Sec. 9
Temporary application
of Model Standing
Orders
Temporary application of
mod standing orders shall
be deemed to be adopted
till the standing orders as
submitted are certified.
Sec.12-A
Payment of Subsistence Allowance to the
Suspended Workers
At the rate of fifty per cent, of the wages which the workman
was entitled to immediately proceeding the date of such
suspension, for the first ninety days of suspension.
At the rate of seventy-five percent of such wages for the
remaining period of suspension if the delay in the completion
of disciplinary proceedings against such workman is not
directly attributable to the conduct such workman. Sec.10-A
PENALTIES
Kumar’s
MATERNITY
BENEFIT ACT, 1961
CHECK LIST
Object of the Act
To protect the dignity of
motherhood and the
dignity of a new person’s
birth by providing for the
full and healthy
maintenance of the
woman and her child at
this important time when
she is not working.
Coverage of the Act
Upon all women employees either employed
directly or through contractor except domestic
women employees employed in mines, factories,
plantations and also in other establishments if the
State Government so decides. Therefore, if the
State Government decides to apply this Act to
women employees in shops and commercial
establishments, they also will get the benefit of
this Act. Bihar, Punjab Haryana, West Bengal,
U.P., Orissa and Andhra have done so.
Conditions for eligibility of
benefits
Women indulging temporary of
unmarried are eligible for
maternity benefit when she is
expecting a child and has
worked for her employer for at
least 80 days in the 12 months
immediately proceeding the
date of her expected delivery
Sec. 5.
Cash Benefits
 Leave with average pay for six weeks before the delivery.
 Leave with average pay for six weeks after the delivery.
 A medical bonus of Rs.25 if the employer does not provide free medical care to the woman.
 An additional leave with pay up to one month if the woman shows proof of illness due to the
pregnancy, delivery, miscarriage, or premature birth.
 In case of miscarriage, six weeks leave with average pay from the date of miscarriage.
Non Cash Benefits/Privilege
 Light work for ten weeks (six weeks plus one month) before the date of her expected delivery, if
she asks for it.
 Two nursing breaks in the course of her daily work until the child is 15 months old.
 No discharge or dismissal while she is on maternity leave.
 No change to her disadvantage in any of the conditions of her employment while on maternity
leave.
 Pregnant women discharged or dismissed may still claim maternity benefit from the employer.
Exception : Women dismissed for gross misconduct lose their right under the Act for Maternity
Benefit
Conditions for eligibility of
benefits
 Ten weeks before the date of her
expected delivery, she may ask
the employer to give her light
work for a month. At that time
she should produce a certificate
that she is pregnant.
 She should give written notice to
the employer about seven weeks
before the date of her delivery
that she will be absent for six
weeks before and after her
delivery. She should also name
the person to whom payment will
be made in case she can not
take it herself.
 She should take the payment for
the first six weeks before she
goes on leave.
 She will get payment for the six
weeks after child-birth within 48
hours of giving proof that she
has had a child.
 She will be entitled to two
nursing breaks of fifteen minutes
each in the course of her daily
work till her child is fifteen
months old.
 Her employer cannot discharge
her or change her conditions of
service while she is on maternity
leave.
Sec. 5.
Leave for Miscarriage
& Tubectomy Operation
 Leave with wages at the rate of
maternity benefit, for a period of six
weeks immediately following the day of
her miscarriage or her medical
termination of pregnancy.
 Entitled to leave with wages at the rate
of maternity benefit for a period of two
weeks immediately following the day of
her tubectomy operation.
Leave for illness arising out of
pregnancy etc. etc.
A woman suffering from illness arising
our of pregnancy, delivery, premature
birth of child (Miscarriage, medical
termination of pregnancy or tubectomy
operation) be entitled, in addition to
the period of absence allowed to her
leave with wages at the rate of
maternity benefit for a maximum
period of one month.
Sec. 10
Prohibition of dismissal during absence of pregnancy
 Discharge or dismissal of a woman employed during or on account of such absence or to give notice or discharge or dismissal on such a day that the notice
will expire during such absence or to very her disadvantage.
 Discharge or dismissal during or on account of such absence or to give notice of discharge or dismissal on such a day that the notice will expire during such
absence, or to vary to her disadvantage any of the conditions of her service.
 At the time during her pregnancy, if the woman but for such discharge or dismissal would have been entitled to maternity benefit or medical bonus, etc.
 Not barred in case of dismissal for cross misconduct. Sec.
Failure to Display
Extract of Act
Imprisonment may
extend to one year or
fine.
Forfeiture of maternity benefit
If permitted by her employer to absent herself under the provisions of section 6 for any period
during such authorized absence, she shall forfeit her claim to the maternity benefit for such
period.
For discharging or dismissing such a woman during or on account of her absence from work,
the employer shall be punishable with imprisonment which shall not be less than 3 months, but
it will extend to one year and will find, but not exceeding Rs.5,000. Sec. 18
Kumar’s
MINIMUM WAGES ACT, 1948
CHECK LIST
PENALITIES Offence Punishment
For paying less than minimum rates of
wages
Imprisonment upto 6 months or
with fine upto Rs.500/-
Sec. 20 For contravention of any provisions
pertaining to fixing hours for normal
working day etc.
Imprisonment upto 6 months or
with fine upto Rs.500/-
Object of the Act
To provide for fixing
minimum rates of wages
in certain employments
Fixation of Minimum Rates of Wages
 The appropriate government to fix minimum rates of wages. The employees
employed in para 1 or B of Schedule either at 2 or either part of notification u/s 27.
 To make review at such intervals not exceeding five years the minimum rates or so
fixed and revised the minimum rates.
Government can also fix Minimum Wages for
 Time work  Piece work at piece rate  Piece work for the purpose of securing to
such employees on a time work basis  Overtime work done by employees for piece
work or time rate workers. Sec. 3
Minimum Rates of
Wages
Such as Basic rates of
wages etc. Variable DA
and Value of other
concessions etc. Sec. 4 Procedure for fixing and
revising Minimum Rates of
Wages
Appointing Committee issue of
Notification etc. Sec. 5
Fixing Hours for
Normal Working
 Shall constitute a
normal working day
inclusive of one or more
specified intervals.
 To provide for a day of
rest in every period of
seven days with
remuneration.
 To provide for payment
for work on a day of
rest at a rate not less
than the overtime rate..
Sec. 13
Overtime
To be fixed by the hour, by the
day or by such a longer wageperiod
works on any day in
excess of the number of hours
constituting normal working day.
Payment for every hour or for
part of an hour so worked in
excess at the overtime rate
double of the ordinary rate of
(1½ times or for agriculture
labour) Sec. 5
Composition of
Committee
Representation of
employer and employee
in schedule employer in
equal number and
independent persons not
exceeding 1/3rd or its
total number one such
person to be appointed
by the Chairman.
Sec. 9
Payment of
Minimum Rates of
Wages
Employer to pay to every
employee engated in
schedule employment at
a rate not less than
minimum rates of wages
as fixed by Notification by
not making deduction
other than prescribed.
Sec.12
Wages of workers who works for less than normal
working days
Save as otherwise hereinafter provided, be entitled to
receive wages in respect of work done by him on that day
as if he had worked for a full normal working day.
Sec.15
Wages for two class of work
Where an employee does two or more
classes of work to each of which a different
minimum rate of wages is applicable,
wages at not less than the minimum rate in
respect of each such class. Sec. 16
Maintenance of registers and records
 Register of Fines – Form I Rule 21(4)
 Annual Returns – Form III Rule 21 (4-A)
 Register for Overtime – Form IV Rule 25
 Register of Wages–Form X, Wages slip–Form XI, Muster Roll–Form V Rule 26
 Representation of register – for three year Rule 26-A Sec. 18
Minimum time rate wages for piece work
Not less than minimum rates wages as
fixed . Sec. 17
Claims by employees
 To be filed by before authority constituted under the Act within 6 months.
 Compensation upto 10 times on under or non-payment of wages Sec. 16
Kumar’s
SALES PROMOTION EMPLOYEES (CONDITIONS
OF SERVICE) ACT, 1976 & THE RULES
CHECKLIST
Object of the Act
To regulate certain conditions of service of sales promotion employees in certain establishments.
Applicability of the Act
Whole of India with effect from
6.3.1976
Applicability of other Acts
 Workmen’s Compensation
Act, 1923
 Industrial Disputes Act, 1947
 Minimum Wages Act, 1948
 Maternity Benefit Act, 1961
 Payment of Bonus Act, 1965
 Payment of Gratuity Act,
1972
Maintenance of register
 A register of sales promotion
employees in Form B.
 Service Books for every
employee in Form C
 A register of service books in
Form D
 Leave account of each
employee in Form E.
Sec. 7 Rule 23
Wages for weekly day of
rest
Entitled to wages on weekly
days of rest as if he was on
duty.
Rule 7
Affixing of holidays to leave
Premixing or suffixing of any
leave not permissible
Rule 11
Quarantine leave
Upto 30 days on the
recommendations of authorised
medical attendant or Public
Health Officer.
Rule 16
 Leave
 Earned leave and cash compensation on
earned leave not availed of.
 On full wages for not less than 1/11th of
the period spent on duty.
 Leave on medical Certificate
 On one-half of the waves for not less
than 1/18th of the period of service.
 Cashable on voluntary relinquishment or
termination other than by way of
punishment.
Sec.4
Maximum limit upto which
earned leave
 Can be accumulated 180 days
of which the employee can
avail himself 90 days at a
time.
 Encashment of leave 120
days.
Sec.14
Issue of Appointment Letter
in Form A
 Within three months from
the commencement of the
Act and in other case on
appointment.
Sec.5 Rule 22
Number of holidays in a year
10 in calendar year
Rule 4
Compensatory holidays
Within 30 days of the day when he was
required to work. Rule 5
Application for leave
When other than casual leave, not less than
one month before commencement of leave
except for urgent or unforeseen
circumstances.
Rule 9
Holidays intervening during the period
of leave
Except casual leave grantged or day of
weekly rest, other holidays shall be part of
leave.
Rule 12
Extraordinary leave
At the discretion of the employer
Rule 17
PENALTY
On contravention of provisions relating to ‘Leave’ Issue of Appointment Letter or
Maintenance of Registers fine upto Rs.1000 Sec. 9
Wages for holidays
To be entitled for wages on all
holidays as if he was on duty.
Rule 6
Recording of reason for
refusal or postponement of
leave.
Rule 10
Medical leave
On production of medical
certificate.
Rule 15
Casual leave
15 days in a calendar year.
Rule 15
Kumar’s
TRADE UNIONS ACT, 1926
CHECKLIST
Object of the Act
To provide for the registration of Trade Union and in certain respects
to define the law relating to registered Trade Unions
Registration of trade Union
 Any 7 or more members of a trade union may, by subscribing
their names to the rules of the trade union and its compliance.
 There should be at least 10%, or 100 of the work-men,
whichever is less, engaged or employed in the establishment or
industry with which it is connected.
 It has on the date of making application not less than 7 persons
as its members, who are workmen engaged or employed in the
establishment or industry with which it is connected.
Registration of trade Union
Prescribed form with following details.
 Names, occupations and address of the
members’ place of work.
 Address of its head office; and
 Names, ages, addresses and occupations of its
office bearers.
Sec. 5
Minimum requirements for
membership of trade union
Not less than 10%, or 100 of
the workmen, whichever is less,
subject to a minimum of 7,
engaged or employed in an
establishments etc.
Sec. 9A
Cancellation of
registration
 If the certificate has been
obtained by fraud or mistake or
it has ceased to exist or has
wilfully contravened any
provision of this Act.
 If it ceases to have the
requisite number of members.
Sec. 10
Criminal conspiracy in trade
disputes
No office bearer or member of a registered
trade union shall be liable to punishment
under sub section (2) of conspiracy u/s 120B
of IPC in respect of any agreement made
between the members for the purpose of
furthering any such object of the Trade
Union.
Sec. 17
Disqualification of office bearers of
Trade Union
If one has not attained the age of 18 years.
Conviction for an offence involving moral turpitude.
Not applicable when 5 years have elapsed.
Sec. 21-A
Returns
Annually to the Registrar, on or before such date as may be
prescribed, a general statement, audited in the prescribed
manner, of all receipts and expenditure of every registered
Trade Union during the year ending on the 31st December.
Sec. 28
Penalties Offence Punishment
U/s 31
 For making false entry in or any
omission in general statement
required for sending returns.
 For making false entry in the
form.
 Fine upto Rs.500. On continuing
default, additional fault, Rs.5 for
each week (not exceeding Rs.50).
 Fine upto Rs.500.
U/s 32  Supplying false information
regarding Trade Union
 Fine upto Rs.200.
Kumar’s
PAYMENT OF BONUS ACT, 1965 & THE RULES
CHECKLIST
PENALTY For contravention of any provision of the Act or the Rule Upto 6 months or with fine upto Rs.1000. Sec.28
Applicability of Act
Every factory where in 10 or more persons are employed
with the aid of power or
An establishment in which 20 or more persons are employed
without the aid of power on any day during an accounting year
Establishment
Establishment includes
Departments, undertakings
and branches, etc.
Separate establishment
If profit and loss accounts are
prepared and maintained in
respect of any such
department or undertaking or
branch, then such department
or undertaking or branch is
treated as a separate
establishment.
Sec.3
Computation of gross
profit
For banking company, as per
First Schedule.
Others, as per
Second Schedule
Sec.4
Eligible Employees
Employees drawing wages
upto Rs.3500 per month or
less.
For calculation purposes
Rs.2500 per month
maximum will be taken
even if an employee is
drawing upto Rs.3500 per
month.
Sec.12
Note: The proposal to
enhance the existing ceiling of
Rs.3500 is under active
consideration by the Govt.
Computation of available surplus
Income tax and direct taxes as payable.
Depreciation as per section 32 of Income
Tax Act.
Development rebate, investment or
development allowance.
Sec.5
Components of Bonus
Salary or wages includes
dearness allowance but no
other allowances e.g.
over-time, house rent,
incentive or commission.
Sec.2(21)
Disqualification & Deduction of Bonus
On dismissal of an employee for
 Fraud; or
 riotous or violent behaviour while on the premises of the establishment;
or
 theft, misappropriation or sabotage of any property of the establishment
or
 Misconduct of causing financial loss to the Employer to the extent that
bonus can be deducted for that year.
Secs. 9 & 18.
Eligibility of Bonus
An employee will be entitled
only when he has worked for
30 working days in that year.
Sec. 8
Payment of Minimum Bonus
8.33% of the salary or Rs.100
(on completion of 5 years after 1st
Accounting year even if there is no
profit)
Sec.10
Sec. 8
Time Limit for
Payment of Bonus
Within 8 months from the close of
accounting y ear. Sec. 19
Set-off and
Set-on
As per Schedule IV.
Sec. 15
Maintenance of Registers and Records etc.
 A register showing the computation of the allocable surplus referred to in clause (4) of section 2, in form A.
 A register showing the set-on and set-off of the allocable surplus, under section 15, in form B
 A register showing the details of the amount of bonus due to each of the employees, the deductions under
section 17 and 18 and the amount actually disbursed, in form C.
Sec.26, Rule 4
Act not applicable to certain employees of LIC, General Insurance, Dock Yards, Red Cross, Universities & Educational
Institutions, Chambers of Commerce, Social Welfare Institutions, Building Contractors, etc. etc. Sec.32.
Kumar’s
PAYMENT OF
GRATUITY
ACT, 1972 & THE RULES
CHECKLIST
Calculation
Seasonal
employee
@ 7 days’
wages for every
completed year
of service.
Sec.
1
Applicability
Every factory,
mine, oil field,
plantation, port,
railways, company,
shop,
establishment or
educational
institutions
employing 10 or
more employees
Sec.
2(s)
Wages for
Calculation
@ 15 days’ wages
for every
completed year as
if the month
comprises of 26
days at the last
drawn wages.
Sec.
1
Calculation
Piece-rated
employee
@ 15 days
wages for
every
completed
year on an
average of 3
months’
wages
Qualifying period
On rendering of 5
years’ service,
either termination,
resignation or
retirement.
Sec.
2(e)
Employee
All employees
irrespective of
status or salary
Entitlement
On completion
of five years’
service except
in case of death
or disablement
Rule
4
Display of Notice
On conspicuous
place at the main
entrance in English
language or the
language
understood by
majority of
employees of the
factory, etc.
Sec.6
Rule 6
Nomination
To be obtained
by employer after
expiry of one
year’s service, in
Form ‘F’
Sec.
4(3)
Maximum
Ceiling
Rs.3,50,000
Rule
9
Mode of
payment
Cash or, if so
desired, by
Bank Draft or
Cheque
Rule
9
Penalties
 Imprisonment for
6 months or fine
upto Rs.10,000 for
avoiding to make
payment by
making false statement
or representa
-tion.
 Imprisonment not
less than 3 months
and upto one year
with fine on
default in complying
with the
provisions of Act or
Rules.
Sec.8
Rule 8
Recovery of
Gratuity
To apply within
30 days in Form I
when not paid
within 30 days
Sec.
4(6)
Forfeiture of Gratuity
 On termination of an
employee for moral
turpitude or riotous or
disorderly behaviour.
 Wholly or partially for
wilfully causing loss,
destruction of property etc.
Sec.
13
Protection of
Gratuity
Can’t be attached
in execution of
any decree
Kumar’s
PAYMENT OF WAGES ACT, 1936
CHECKLIST
Applicability of Act
 Factory industrial Establishment
 Tramway service or motor
transport service engaged in
carrying passengers or good or
both by road for hire or reward.
 Air transport service Dock,
Wharf or Jetty  Inland vessel,
mechanically propelled
 Mine, quarry or oil-field
Plantation
 Workshop or other establishment
etc.
Coverage of Employees
Drawing average wage upto
Rs.6500 pm as amended w.e.f.
6.9.05.
Fines as prescribed by
Not to imposed unless the
employer is given an opportunity to
show cause
To record in the register
Sec.8
Deductions for service
rendered
When accommodation amenity or
service has been accepted by the
employee.
Sec.11
On contravention of S.5 (except sub-sec.4), S.7, S.8
(except Ss.8), S.9, S.10 (except Ss.2) and Secs.11 to 13.
Fine not less than Rs.1000 which may extend to Rs.5000.
On subsequent conviction fine not less than Rs.5000, may
extend to Rs.10,000. On contravention S.4, S.5(4), S6,
S.8(8), S.10(2) or S.25 fine not less than Rs.1000. – may
extend to Rs.5000. On subsequent On conviction fine not
less.
 For failing to maintain registers or records; or
 Wilfully refusing or without lawful excuse neglecting to
furnish information or return; or
 Wilfully furnishing or causing to be furnished any
information or return which he knows to be false or
 Refusing to answer or wilfully giving a false answer to
any question necessary for obtaining any information
required to be furnished under this Act.
 Fine which shall not be less than Rs.1000 but may
extend to Rs.5000 – On record conviction fine not less
than Rs.5000, may extend to Rs.10,000.
 For second or subsequent conviction, fine not less than
Rs.5000 but may extend to Rs.10,000
 Wilfully obstructing an Inspector in the discharge of his
duties under this Act; or
 Refusing or wilfully neglecting to afford an Inspector any
reasonable facility for making any entry, inspection etc.
 Wilfully refusing to produce on the demand of an
inspector any register or other document kept in
pursuance of this Act; or preventing any person for
appearance etc.
Fine not less than Rs.1000 extendable
Upto Rs.5000 – On subsequent conviction fine
not less than Rs.5000 – may extent to Rs.10,000
 On conviction for any offence and again guilty of
Contravention of same provision.
 Failing or neglecting to pay wages to any employee
 Imprisonment not less than one month extendable upto
six months and fine not less than Rs.2000 extendable
upto Rs.15000.
 Additional fine upto Rs.100 for each day.
Object of the Act
To regulate the payment of wages of certain
classes of employed persons
Wages to be paid in
current coins or currency
notes
All wages shall be paid in
current coins or currency
notes or in both.
After obtaining the
authorization, either by
cheque or by crediting the
wages in employee’s bank
Account Sec. 6
Time of payment of wages
The wages of every person employed be
paid.
When less than 1000 persons are employed
shall be paid before the expiry of the 7th day
of the following month.
When more than 1000 workers, before the
expiry of the 10th day of the following
month. Sec. 5
Deduction made from wages
Deductions such as, fine, deduction for
amenities and services supplied by the
employer, advances paid, over payment of
wages, loan, granted for house-building or
other purposes, income tax payable, in
pursuance of the order of the Court, PF
contributions, cooperative societies,
premium for Life Insurance, contribution to
any fund constituted by employer or a trade
union, recovery of losses, ESI contributions
etc.etc. Sec. 7
Deduction for damage or loss
For default or negligence of an employee
resulting into loss. Show cause notice has to
be given to the employee. Sec.10
Deduction for absence
from duties for
unauthorised absence
Absence for whole or any
part of the day –
If ten or more persons
absent without reasonable
cause, deduction of wages
upto 8 days.
Sec. 9
Kumar’s
WORKMEN’S COMPENSATION
ACT, 1923
CHECKLIST
Applicability
All over India
Sec.1
Coverage of Workmen
All workers irrespective of their status or
salaries either directly or through
contractor or a person recruited to work
abroad. Sec.1(3)
Employer’s liability to pay
compensation to a workman
On death or personal injury resulting into
total or partial disablement or occupational
disease caused to a workman arising out
of and during the course of employment.
Sec.3
Amount of compensation
 Where death of a workman results from the injury
 An amount equal to fifty per cent of the monthly wages of the
deceased workman multiplied by the relevant factor on an
amount of eighty thousand rupees, whichever is more.
 Where permanent total disablement results from the injury.
 An amount equal to sixty per cent of the monthly wages of the
injured workman multiplied by the relevant factor or an amount
of ninety thousand rupees, whichever is more
Procedure for calculation
Higher the age – Lower the compensation
 Relevant factor specified in second column of Schedule IV giving
slabs depending upon the age of the concerned workman.
 Example : In case of death.
 Wages Rs.3000 PM ● Age 23 years
 Factor as schedule IV Rs.19.95
 Amount of compensation Rs.329935
 In case of total disablement Rs.395910.
Sec. 4
When an employee is not liable for
compensation
 In respect of any injury which does
result in the total or partial disablement
of the workman for a period exceeding
three days.
 In respect of any injury, not resulting in
death or permanent total disablement
caused by an accident which is directly
attributable to-
 The workman having been at the time
thereof under the influence of drink or
drugs, or
 Willful disobedience of the workman to
an order expressly given, or to a rule
expressly framed, for the purpose of
securing the safety of workmen, or
 Willful removal or disregard by the
workman of any safety guard or other
device which he knew to have been
provided for the purpose of securing the
safety of workman.
Sec.3(a) & (b)
Wages
When the monthly wages are
more than Rs.4000 per month it
will be deemed Rs.4000.
Sec.4 Exh.b
Notice
Accident
As soon as
Practicable
Sec. 10
Report of accident
Rule 11 Form EE
Report of fatal Accident and Serious Injury within 7 days to the
Commissioner (not application when ESI Act applies).
Sec.10B
Bar upon contracting out
Any workman relinquishing his right for
personal injury not permissible.
Sec.14
PENALTY
 In case of default by employer
 Deposit of Compensation
 50% of the compensation amount + interest to be paid to the
workman or his dependents as the case may be.
 Within one month with the Compensation Commissioner
Sec.4A

Public Provident Fund Scheme 1968

THE PUBLIC PROVIDENT FUND SCHEME, 1968
[Issued vide Government of India, MOF (DEA) Notification No. GSR 1136 dated
15.6.1968 and further amended from time to time]
GSR 1136;- In exercise of the power conferred by Section 3 of the Public
Provident Fund Act, 1968 (23 of 1968), the Central Government hereby makes
the following scheme, namely:-
1. Short title and commencement:- (1) This scheme may be called the
Public Provident Fund Scheme, 1968.
(2) It shall come into force on Ist July, 1968.
2. Definitions:- In this scheme, unless the context otherwise requires :-
(a) ‘Account’ means a Public Provident Fund Account under this scheme.
(b) ‘Accounts Office’ means an office or branch of the State Bank of India,
may subsidiary bank of the State Bank of India (excluding a pay office, a
sub pay office or any other office managed by single officer or clerk) and
any other office authorized by the Central Government to receive
subscriptions under the scheme;
( c) ‘Accounts Officer’ means the person who for the time being is in
charge of an Accounts Office.
(d) ‘Act’ means the Public Provident Fund Act, 1968 (23 of 1968)
(e) ‘Form’ means a form appended to this scheme;
(ee) ‘Guardian’ in relation to a minor, means:-‘
(i) Father or mother and
(ii) Where neither parent is alive, or where the only living parent is
incapable of acting, a person entitled under the law for the time being
in force to have care of the property of minor;
(f) ‘Year’ means the financial year (Ist April to 31st March)
3. Limit of subscription:- (1) Any individual may, on his own behalf or on
behalf of a minor of whom he is the guardian, subscribe to the Public Provident
Fund (thereafter referred to as the fund) any amount not less than Rs. 500
and not more than Rs. 70,000 in a year.
(2) Notwithstanding anything contained in sub-paragraph (1), an individual
may also subscribe to the fund on behalf of:-
(a) a Hindu Undivided Family, or
(b) an association of persons or a body of individuals consisting in either
case, only of husband and wife governed by the system of community
of property in force in the State of Goa and the Union territories of
Dadra and Nagar Haveli and daman and Diu, by whom or on whose
behalf money is deposited in an account and the deposit means money
is deposited.
Out of the income of the Hindu Undivided Family or an association of
persons or body of individuals, as the case may be , any amount not less
than Rs. 500 and not more than Rs. 70,000 in a year.
Non Resident Indians are not eligible to open an account under the
Public Provident Fund Scheme:-
Provided that if a resident who subsequently becomes Non Resident Indian
during the currency of the maturity period prescribed under Public Provident
Fund Scheme, may continue to subscribe to the Fund till its maturity on a Non
Repatriation Basis.
[MOF (DEA) Notification No GSR 585 (E) dated 25.7.2003]
4. Manner of making the subscription:- (1) Every individual desirous of
subscribing to Fund under the Scheme for the first time either on his own behalf
or on behalf of a minor of whom he is the guardian or on behalf of a Hindu
Undivided Family of which he is a member or on behalf of an Association of
persons or a Body of individuals as referred to in sub rule 2(b) of Rule 3 above
shall apply to the Accounts Office in Form A, or as near thereto as possible
together with the amount of initial subscription which shall be integral multiples
of Rs.5
(2) On receipt of an application under sub-paragraph(1), the Accounts
Office shall open an account in the name of the subscriber and issue a pass
book to him, wherein all amount of deposits, withdrawals, loans and repayment
thereof together with interest due shall be entered over the signature of the
Accounts Officer with the date stamp.
(3) The subscriber shall deposit his subscription with the Account Office
with challan in Form B, or as near thereto s possible. The counterfoil of the
challan shall be returned to the depositor by the Account Office, duly evidence
by receipt. In the case of deposits made by cheques or draft or pay order, the
Accounts Office, may issue a paper token to the depositor pending realization
of the proceeds.
(4) Every subscription shall be made in cash or by crossed cheques or draft
or pay order din favour of the Accounts Officer at the place at which that office
is situated.
5. Number of subscription: The subscription, which shall be in multiples of
Rs. 5 may, for any year, be paid into the account in one lump sum or
installments not exceeding twelve in a year.
6. Transfer of Account:- A subscriber may apply for transfer of his
account from one “Account Office” to another “Account Office”.
7. Issue of duplicate pass book, etc.:- (1) In the event of loss or
destruction of a pass book issued by an Accounts Office, the Accounts Office
may, on an application made to it in this behalf, and on payment of rupee one
by the subscriber, issue a duplicate thereof to him.
(2) Condonation of default:- A subscriber who fails to subscribe in any year
according to the limits specified in paragraph 3, may approach the Accounts
Office for condonation of the default, on payment , for each year of default , a
fee of Rs. 50 alongwith arrear subscription of Rs. 500 for each year.
8. Interest - Interest at the rate , notified by the Central Government in
official gazette from time to time, shall be allowed for calendar month on the
lowest balance at credit of an account between the close of the fifth day and
the end of the month and shall be credited to the account at the end of each
year.
Provided that where the interest to be credited contains a part of a rupee.
Then, if such part is fifty paise or more, it shall be increased to one complete
rupee, and if such part is less than fifty paise, it shall be ignored.
9. Withdrawals from the Fund:- (1) Any time after the expiry of five
years from the end of the year in which the initial subscription was made , a
subscriber may, if he so desires, apply in Form C or as near thereto as possible,
together with his pass book to the Accounts Office withdrawing from the
balance to his credit, an amount not exceeding fifty per cent of the amount
that stood to his credit at the end of the forth year immediately preceding the
year of withdrawal or at the end of preceding year, whichever is lower, less the
amount of loan, if any, drawn by him under paragraph 10 and which remains to
be repaid:
Provided that not more than one withdrawal shall be permissible during any
one year.
(2) On receipt of an application under sub paragraph (1) the Accounts Office
may, after satisfying itself that the amount of withdrawal applied for is not in
excess of the limit prescribed in sub-paragraph (1) and that the applicant has,
till the date of application, been subscribing according to the limit specified in
paragraph 3, subject to the provisions of sub-paragraph (4) permit the
withdrawal and enter the amount withdrawn in the pass book.
(3) Closure of account or continuation of account without deposits
after maturity:- Notwithstanding the provisions of sub-paragraph (1), any
time after the expiry of 15 years from the end of the year in which the initial
subscription was made by him, a subscriber may, if he so desires, apply in
Form C or as ‘near thereto as possible together with his pass book to the
Accounts Office for the withdrawal of the entire balance standing to his credit
and the Accounts Office, on receipt of such an application from the subscriber,
shall subject to the provisions of sub-paragraph (4) allow the withdrawal of the
entire balance (together with interest up to the last day of the month
preceding the month in which the application for withdrawals made) after
making adjustments, if any, in respect of any interest due from the subscriber
on loans taken by him and close his account.
Provided that a subscriber may, if he so desires, make withdrawal of the
amount standing to his credit, from time to time, in installments not exceeding
one in a year.
(3A) Continuation of account with deposits after maturity :- Subject to
the provisions of sub-paragraph (3) a subscriber may, on the expiry of 15 years
from the end of the year in which the initial subscription was made but before
then expiry of one year thereafter, may exercise an option with the Accounts
Office in Form H, or as near thereto as possible, that he would continue to
subscribe for a further block period of 5 years according to the limits of
subscription specified in paragraph 3.
(3B) In the event of a subscriber opting to subscribe for the aforesaid block
period he shall be eligible to make partial withdrawals not exceeding one every
year by applying to the Accounts Office in Form C, or as near thereto as
possible, subject to the condition that the total of the withdrawals, during the 5
year blcok period , shall not exceed 60 percent of the balance at his credit at the
commencement of the said period.
10. Loans:- (1) Notwithstanding the provisions of paragraph 9, any
time after the expiry of one year from the end of the year in which the
initial subscription was made but before expiry of five years from the end
of the year in which the initial subscription was made, a subscriber may, he
so desires, apply in Form D or as near thereto as possible, together with
his pass book to the Accounts Office for obtaining loan consisting of a sum
of whole rupees not exceeding twenty five percent of amount that stood
to his credit to at the ends of the second year immediately preceding the
year in which the loan is applied for.
(2) On receipt of an application under sub-paragraph (1) the Accounts
Office may, after satisfying itself that the amount of loan applied for is not
in excess of the limit prescribed in sub-paragraph (1) and that the
applicant has, till the date of application, been subscribing according to
the limit specified in paragraph 3, subject to the provisions of sub
paragraph (3), sanction the loan and enter the amount in the pass book.
(3) Where the application is made by a person who has made
subscriptions to the Fund on behalf of a minor of whom he is the
guardian, he shall furnish a certificate in the following form, namely:-
‘ certified that the amount for which loan is applied for is required for the
use of ……. Who is alive and is still a minor.”
11. Repayment of loan and interest :- (1) The principal amount of a
loan under this Scheme shall be repaid by the subscriber before the
expiry of thirty six months from the first day of the month following the
month in which then loan is sanctioned. The repayment a may be made
either in one lump sum or in two or more monthly installments within the
prescribed period of thirty six months. The repayment will be credited to
the subscriber’s account.
(2) After the principal of the loan is fully repaid, the subscriber shall pay
interest thereon in not more than two monthly installments at the rate
of one percent perannum of the principal for the period of
commencing from the first day of the month following the month in
which the loan is drawn up to the last day of the month in which the last
installment of the loan
Provided that where the loan is repaid, only in part within the
prescribed period of thirty six months, interest on the amount of loan
outstanding shall be charged at six per cent per annum instead of at
one per cent per annum from the first day of the month following the
month in which the loan was obtained to the last day of the month in
which the loan is finally repaid.
(3) The interest on the amount of loan outstanding under the proviso to
sub-paragraph (2) and any portion on interest payable, but not paid, on
any loan , the principal amount of which has already been repaid within
the prescribed period of thirty six months, may, on becoming due, be
debited to the subscriber’s account.
(4) The interest recoverable shall accrue to the Central Government .
12. Nomination and repayment after death of subscriber :-
(1) subscriber to the fund may nominate in Form E or, as
near thereto as possible, one or more persons to receive the
amount stading to his credit in the event of his death before
the amount has become payable or, having become payable ,
has not been paid.
Note:- Nomination may also be made in respect of an account opened
on behalf of a Hindu Undivided Family (HUF).
(2) No Nomination shall be made in respect of an account opened on
behalf of minor.
[MOF (DEA) Notification No. GSR 477 (E) dated 25.5.1994]
(3) A nomination made by a subscriber may be cancelled or varied by
a fresh nomination in Form F or , as near thereto as possible by giving
notice in writing to the Accounts Office in which the account stands.
(4) Every nomination and every cancellation or variation thereof shall
be registered in the Accounts Office and shall be effective from the date
of such registration, the particulars of which shall be entered in the pass
book.
(5) If any nominee is a minor, the subscriber may appoint any person to
receive the amount due under the account in the event of the death of
the subscriber during the minority of the nominee.
(6) Notwithstanding the provisions contained in paragraph 9-
a. If a subscriber to an account in espect of which a nomination is
in force dies, the nominee or nominees may make an application
in Form G or, as near thereto as possible, to the Accounts
Office together with proof of death of the subscriber and on
receipt of such application all amounts standing to the credit of
the subscriber after making adjustment, if any, in respect of
interest on loans taken by the subscriber shall be repaid by the
Accounts Office itself to the nominee or nominees.
Provided that if any nominee is dead, the surviving nominee or nominees
shall, in addition to the proof of death of the subscriber, also furnish proof
of the death of the deceased nominee.
b. Where there is no nomination in force at the time of death of the
subscriber, the amount standing to the credit of the deceased
after making adjustment, if any, in respect of interest on loans
taken by the subscriber, shall be repaid by the Accounts Office to
the legal heirs of the deceased on receipt of application in Form
G in this behalf from them.
Provided that the balance up to Rs. 1 lakh may be paid to the legal
heirs on production of (i) a letter of indemnity, (ii) an affidavit, (iii) a
letter of disclaimer on affidavit, and (iv) a certificate of death of
subscriber, on stamped paper, in the forms as in Annexure to Form G.
(7) A subscriber to the Fund cannot nominee a trust as his nominee.
13. Power to relax:- Where the Central Govt is satisfied that the
operation of the any of the provisions of this scheme causes undue hardship to
a subscriber, it may, by order for reasons to be recorded in writing , relax the
requirements of that provision in a manner not inconsistent with the provisions
of the Act.