Doing Business in India - RSM Austria

Employee
benefit
What is it?
Applicability
Other details- like
cost to employer
Minimum
Wages
The Minimum Wages
Act, 1948 provides
minimum wages to
employees in certain
employments in order
t o p r e v e n t t h e
exploitation of the
unorganized labour.
A p p l i c a b l e t o
employees employed
as casual, daily rated,
t e m p o r a r y o r
permanent working in
t h e i n d u s t r i e s
s p e c i f i e d i n t h e
schedule to the Act.
Many states in India
have included Shops
a n d C o m m e r c i a l
establishment in the
schedule and as such
the Act is applicable to
shops and commercial
establishments
The employers have
t o e n s u r e t h e
compliance of the
M i n i m u m w a g e s
notifications issued
b y t h e s t a t e
government from
time to time.
The term wages is defined differently for calculation of above benefits.
2.2 Workers’ Compensation
The Workmen’s Compensation Act, 1923 provides workers with a convenient and
easy method to claim compensation for personal injury from an employment
related accident.
2.3 Industrial Employment (Standing orders) Act, 1946
The object of the Industrial Employment (Standing orders) Act, 1946 is to require
the employers in industrial establishments formally to define conditions of
employment of workman under them. 'Standing order' means the rules of conduct
for workmen employed in industrial establishment relating to matters like
attendance, leave, misconduct, etc enumerated in the schedule of the Act. It applies
to every industrial establishment wherein one hundred or more workmen (in
Maharashtra it is fifty workmen by virtue of a state amendment) are employed on
any day of the preceding twelve months. The standing orders are to be certified by a
certifying officer appointed under the Act. The rules provide for model standing
orders.
2.4 Industrial Disputes Act, 1947
Industrial Disputes Act, 1947 is aimed to resolve or reduce the difference between
employers and the workmen with a view to bring industrial peace and thereby
increasing industrial production in the country. Matters related to change of service
conditions, retrenchment, lay off and closures of industrial units are regulated
under this Act.
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