Sterlite Industries (India) Limited - Sterlite Industries India Ltd.

Employee State Insurance Act, 1948 (“ESIA”)
The ESIA requires the provision of certain benefits to employees or their beneficiaries in the event of sickness, maternity, disability or
employment injury. Every factory or establishment to which the ESIA applies is required to be registered in the manner prescribed under the
ESIA. Every employee, including casual and temporary employees, whether employed directly or through a contractor, who is in receipt of
wages up to Rs. 6,500 per month, is entitled to be insured under the ESIA. The ESIA contemplates the payment of a contribution by the
principal employer and each employee to the Employee State Insurance Corporation.
Payment of Wages Act, 1936 (“PWA”)
The PWA regulates the payment of wages to certain classes of employed persons and makes every employer responsible for the payment of
wages to persons employed by such employer. No deductions are permitted from, nor is any fine permitted to be levied on wages earned by a
person employed except as provided under the PWA.
Minimum Wages Act, 1948 (“MWA”)
The MWA provides for a minimum wage payable by employers to employees. Under the MWA, every employer is required to pay the
minimum wage to all employees, whether for skilled, unskilled, manual or clerical work, in accordance with the minimum rates of wages that
have been fixed and revised under the MWA. Workmen are to be paid for overtime at overtime rates stipulated by the appropriate government.
Contravention of the provisions of this legislation may result in imprisonment up to six months or a fine up to Rs. 500 or both.
Workmen’s Compensation Act, 1923 (“WCA”)
The WCA makes every employer liable to pay compensation if injury, disability or death is caused to a workman (including those employed
through a contractor) due to an accident arising out of or in the course of his employment. If the employer fails to pay the compensation due
under the WCA within one month from the date it falls due, the commissioner may direct the employer to pay the compensation amount along
with interest and impose a penalty for non-payment.
Payment of Gratuity Act, 1972 (“PGA”)
Under the PGA, an employee who has been in continuous service for a period of five years is eligible for gratuity upon retirement or
resignation. The entitlement to gratuity in the event of superannuation or death or disablement due to accident or disease, will not be contingent
on an employee having completed five years of continuous service. The maximum amount of gratuity payable must not exceed Rs. 350,000.
An employee in a factory is said to be in “continuous service” for a certain period notwithstanding that his service has been interrupted
during that period by sickness, accident, leave, absence without leave, lay-off, strike, lock-out or cessation of work not due to the fault to of the
employee. The employee is also deemed to be in continuous service if the employee has worked (in an establishment that works for at least six
days in a week) for at least 240 days in a period of 12 months or 120 days in a period of six months immediately preceding the date of
reckoning.
Payment of Bonus Act, 1965 (“PBA”)
The PBA provides for the payment of a minimum annual bonus to all employees regardless of whether the employer has made a profit or a
loss in the accounting year in which the bonus is payable. Under the PBA every employer is bound to pay to every employee, in respect of the
relevant accounting year, a minimum bonus equal to 8.33% of the salary or wage earned by the employee during the accounting year or Rs.
100, whichever is higher. If the allocable surplus, as defined in the PBA, available to an employer in any accounting year exceeds the aggregate
amount of minimum bonus payable to the employees, the employer is bound to pay bonuses at a higher rate which is in proportion to the salary
or wage earned by the employee and the allocable surplus during the accounting year, subject to a maximum of 20% of such salary or wage.
Contravention of the provisions of the PBA by a company will be punishable by imprisonment for up to six months or a fine of up to Rs. 1,000,
or both, against persons in charge of, and responsible to the company for, the conduct of the business of the company at the time of
contravention.
Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (“EPFA”)
The EPFA creates provident funds for the benefit of employees in factories and other establishments. Contributions are required to be made
by employers and employees to a provident fund and pension fund established and maintained by the Government of India.
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