Ministry of Labour & Employment

FREQUENTLY ASKED QUESTIONS ON LABOUR LAWS

1. What are the labour enactments available for the benefit of

employees under the Central Sphere (enforced by the organization
of CLC (C)?

i. The Contract Labour (Regulation and Abolition) Act, 1970.

ii. The Building and Other Construction Workers (Regulation of

Employment and Conditions of Service) Act, 1996.

iii. Inter-state Migrant Workmen (Regulation of employment of

and conditions of Service) Act, 1979.

iv. Payment of Wages Act, 1936.

v. The Minimum Wages Act, 1948.

vi. The Equal Remuneration Act, 1976.

vii. The Payment of Gratuity Act, 1972.

viii. The Payment of Bonus Act, 1965.

ix. The Industrial Disputes Act, 1947.

x. Hours of Employment Regulation for Railway Servants, 2005.

xi. The Child Labour (Prohibition and Regulation) Act, 1986.

xii. The Maternity Benefit Act, 1961.

xiii. The Industrial Employment (Standing Orders) Act, 1946.

xiv. Labour Laws (Exemption from Furnishing Return & Maintaining

Register by Certain Establishments) Act, 1988.

THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970

1. What is the minimum no. of workmen for whom labour license is
required to be obtained?

20.

2. What is the License fee to be remitted along with the application for Licence?

For 20 Contract Workmen - Rs. 15,

For 21 or more Workmen but less than 50 – Rs. 37.50,

For 51 or more Workmen but less than 100 – Rs. 75,

For 101 or more Workmen but less than 200 – Rs. 150,

For 201 or more Workmen but less than 400 – Rs. 300,

For 401 and above – Rs. 375.00.

3. What is the security deposit to be remitted alongwith the application for Licence?

Rs. 90/- per Workmen,

If Contractor is a co-operative Society – 15/- per Workmen.

4. What is the mode of Payment of License fee-security deposit?

Through Demand Draft.

5. In whose favour demand draft is to be obtained?

The demand draft shall be drawn in the name of Assistant Labour Commissioner (Central) /
Regional Labour Commissioner (Central), being the licensing and registering officer. DDO,
O/o Dy. CLC(C) concerned.

6. What are the documents to be attached along with the application for license?

Form IV,
 Copy of Work Order,

Proof of Status of Contractors firm,

Form V,

Demand Draft.

7. What is the validity period of license?

One year from the date of issuance.

8. When the application for renewal of a License is to be submitted?

Thirty days before the date of expiry of license.

9. What is the renewal fee to be attached?

For 20 Contract Worker - Rs. 15,

For 21 or more Workmen but less than 50 – Rs. 37.50,

For 51 or more Workmen but less than 100 – Rs. 75,

For 101 or more Workmen but less than 200 – Rs. 150,

For 201 or more Workmen but less than 400 – Rs. 300,

For 401 and above – Rs. 375.

10. What are the notices/ abstract to be displayed at the work-spot?

Abstract of Act and rules,

Notice showing rates of wages,

Date of payment of wages,

Date of payment of unpaid wages,

Hours of work,

Wage period,
 Names and address of the inspectors,

Copy of license.

11. When the wages to contract workmen should be paid?

Before the expiry of 7th day of the last day of wage period where number of workmen is less than
1000.

Before the expiry of 10th day of the last day of wage period where number of workmen is 1000 or
above.

12. What are the welfare amenities to be provided to workmen under the act?

Canteen (if 100 or more Contract Labour were/are working),

Rest Room (if Contract Labour are halting at night),

Drinking Water,

Toilets/ Urinal/ Wash Room,

First Aid Facility.

13. What should be done to increase the number of workmen in a license during the period
of operation of license?

Original License should be returned along with application for amendment, additional
security deposit and additional license fee.

14. What is the procedure for the issuance of a duplicate license?

Fee of Rs. 5/- to be remitted along with a request.

15. What is an employment card?

Employment card specifies the particulars of contract workmen engaged by the contractor.
The Contractor has to issue employment card duly filled in to the worker within 3 days of
the employment.

16. Whether a workmen are eligible for wages during the Rest day/Weekly off?
 Yes.

17. I am having 18 Contract labourers, whether my establishment will be covered under

the Contract Labour (R&A) Act, 1970?

No.

18. What is a Wage Slip?

Under the Act, every contractor is liable to give a wage slip-specifying wages rates and
other particulars along with the payment.

19. Earlier I employed 22 Labourers, now I have reduced to 18 workmen, whether my

establishment has to continue with the Labour license or surrender?

Yes, your establishment will continue to be covered under the provisions of the Act for a
period of one year from the day on which day 20 or more workmen lastly employed.

20. Is a sub contractor supposed to take License?

If principal employer endorses the name of sub contractor in the agreement, after having
Form V from principal employer, a sub contractor is requested to take License

21. What is the procedure for any amendment of License?

Original license along with requisite additional license fee and additional security deposit, if
any with the request specifying the amendment details to be furnished.

22. I employed 20 Contract Labour only on one day; will my establishment be covered
under Contract Labour (R & A) Act, 1970?

Yes.
 THE BUILDING AND OTHER CONSTRUCTION WORKERS (REGULATION OF
EMPLOYMENT AND CONDITIONS OF SERVICE) ACT, 1996

What is the minimum no. of building worker for whom certificate of

23.
Registration is required to be obtained?

Ten

24.What is the fee to be remitted along with the application of

registration?

Rs. 100/- for upto 100 building workers,

Rs. 500/- for exceeding 100 but not more than 500 building workers,

Rs. 1000/- for more than 500 building workers.

25. What is the mode of payment of fee?

Through Demand Draft.

26. In whose favour demand draft is to be obtained?

Assistant Labour Commissioner (Central),

Regional Labour Commissioner (Central),

DDO, O/o Dy. CLC(C), concerned.

27. What are the documents to be attached along with the application
for registration?

Form I,

Proof of status of Contractor’s firm,

 Demand Draft.

28. What are the notices/ abstract to be displayed at work spot?

Abstract of Act,

Notice showing rates of wage,

Wage period,

Date of payment of wages,

Hours of work,

Name and Address of Inspectors,

Place & Time of disbursement of Wages,

Copy of Certificate of registration,

Copy of Health of Safety Policy (of application).

29. What are the welfare amenities to be provided to workmen under the
Act?

Canteen (if 100 workers were/are working),

Rest Room (if workers are night halting),

Drinking Water,

Toilets/ Urinal/ Wash Room,

First Aid Facility.

INTER-STATE MIGRANT WORKMEN (REGULATION OF EMPLOYMENT OF

AND CONDITIONS OF SERVICE) ACT, 1979

30. What is the minimum no. of workmen for whom License is required
to be obtained under the Act?
 Five.

31.What is the Licence fee to be remitted along with the application of

License?

For 5 or more workmen but less than 20 – Rs. 15,

For 20 or more workmen but less than 50 – Rs. 40,

For 50 or more workmen but less than 100 – Rs. 80,

For 100 or more workmen but less than 200 – Rs. 150,

For 200 or more workmen but less than 400 – Rs. 300,

For 400 or more workmen – Rs. 400.

The licensing officer shall prepare an estimate of the amount needed to

provide for recruitment or employment of migrant workmen. The Security
Deposit shall not exceed 40% of the amount estimated by him.

32. What is the mode of payment of License fee/security deposit?

Through Demand Draft.

33. In whose favour demand draft is to be obtained?

Assistant Labour Commissioner (Central),

Regional Labour Commissioner (Central),

DDO, O/o Dy. CLC(C), concerned.

34. What are the documents to be attached along with the application for license?

Form IV,

Copy of Work Order,

Proof of status of Contractors firm,

 Form V,

Demand Draft.

35. When the application for renewal of a License to be submitted?

Thirty days before the date of expiry of license.

36. What is the renewal fee to be attached?

Original license along with requisite license fee with request specifying the facts to be
amendment to be furnished.

37. What are the notices / abstract to be displayed at work spot?

Abstract of Act & Rules,

Notice showing rates of wages,

Date of payment of wages,

Date of payment of unpaid wages,

Hours of work,

Copy of License,

Wage period,

Names & address of Inspector.

38. What Should be the date of payment of wages to Inter-State Migrant workmen ?

By 7th of every month where workmen is less than 1000,

By 10th every month where workmen is above 1000.

39. What are the welfare amenities to be provided to workmen under the Act?

Medical facilities,

Protective clothing,

Drinking water, latrines, urinals and washing facility,

 Rest rooms (if workers are night halting),

Canteens (if workers were/are working),

Crèche.

THE PAYMENT OF WAGES ACT, 1936

40. What are the main provisions of the payment of Wages Act?

Payment of wages in particular form and at regular intervals without any unauthorized deductions
is the object of this Act

41. What is the ceiling of salary for applicability of the Act?

Rs. 16000 p/m.

42. What are the registers/ records to be maintained by the employer under the Act?

Register of Wages,

Muster Roll,

Register of OT/fines/Advances/ Deduction for Damage or Loss,

Measurement slips.

THE MINIMUM WAGES ACT, 1948

43. What are the Scheduled Employments under the Minimum Wages Act in the Central
Sphere?

Construction Building Operation,

Watch and Ward (Security Services),

Sweeping and Cleaning,

Loading and Unloading Operations in Railway Goods shed, etc.,

Mines.

44. What are the registers/records to be maintained by the employer under the Act?

Register of wages,

Muster Roll,

Register of OT/fines/Advances/ Deduction for Damage or Loss,

Wages Slip.

45. Do the Minimum Wages rates in the Central sphere differ from the wage rates in the
State Sphere/UT administration ?

Yes, Central Government and each State Government/ UT administration, notify the Minimum
rates of wages in respect of a scheduled employment separately from time to time. In the Central
Sphere, The rate notified by the Central Government or the Concerned State Government/UT
administration, whichever is higher will be made applicable.

46. What should be done when employer pays less than the prescribed Minimum Wage?

An aggrieved employee can file a Claim Application requesting relief before the Authority under
the Act

47. Who can file Claim application ?

Employee, any legal practitioner or any official of a registered Trade Union authorized in writing to
act, any Inspector under the Act or any person with permission of Authority can file claim.

48. Who is the Authority to hear claim application under the Act,

Regional Labour Commissioner (Central).

THE EQUAL REMUNERATION ACT, 1976

49. What are the main provisions of Equal Remuneration Act?

The Act provides for the payment of equal remuneration to men and women workers and
for prevention of discrimination, on the ground of sex, against women in the matter of
employment and for matter connected there with of incidental thereto.

50. What is the authority to hear Claim Petition under the Act?

Section of 7.

51. Who is the authority to hear Claim petition under the Act?

Assistant Labour Commissioner (Central).

THE PAYMENT OF GRATUITY ACT,1972

52. What is the eligibility criteria for the payment of Gratuity to workmen?

Gratuity shall be payable to an employee on the termination of his employment after he has
rendered continuous service for not less than five years or on his superannuation or on his
retirement or resignation or on his death or disablement due to accident or disease. (Completion of
continuous service of five years shall not be necessary in case of death or disablement).

53. What is Continuous service under the Act?

An employee shall be said to be in continuous service for a period if he has, for that period, been
in uninterrupted service including service which may be interrupted on account of sickness,
accident, leave, absence from duty without leave. lay-off, strike, or a lockout or cessation of work
not due to any fault of the employee.
54. Who is the controlling authority under the Act in the Central.

Assistant Labour Commissioner (Central).

55. Who is the appellate authority under the Act?

Regional Labour Commissioner (Central).

56. What is maximum amount of Gratuity Payable under the Act to the eligible workmen?

The gratuity shall be paid at the rate of 15 days wages for every completed year of service,
however, maximum gratuity payable is not exceeding Rs. 10 lakhs.

57. How an application of Gratuity should be made?

An employee who is eligible for payment of gratuity under the Act, or any person authorized, in
writing, to act on his behalf, shall apply, ordinarily within thirty days from the date of gratuity
became payable in Form I to the employer.

58. Who can submit an application for payment of Gratuity?

Employee, nominee or a legal heir of an employee.

59. Under which condition workmen can make an application to the controlling authority
for direction?

If an employer refuses to accept a nomination or to entertain an application sought to be

filed under rule 7.

60. Whether there is any provision available for recovery of gratuity from the
employer under the Act
Where an employer fails to pay the gratuity, the employee concerned or his nominee may apply to
the controlling authority in duplicate in Form T for recovery thereof under section 8 of the Act.

THE PAYMENT OF BONUS ACT, 1965

61. What are the main objective of the payment of Bonus Act?

An act to provide for the payment of bonus to persons employed in certain establishment on the
basis of profits or on the basis of production or productivity and for matter connected therewith

62. Which establishment are covered under the Act?

Every factory and every establishment in which 20 or more persons are employed on any
day during an accounting year will be covered under the act

63. What is the ceiling of salary for eligibility for the payment of Bonus under the Act?

Rs. 10,000/-.

64. What are the registers/records to be maintained by the employer under the Act?

Form A, B, C & D Register.

65. I am working in a new company, whether I am eligible for Bonus?

In the first five accounting years following the accounting year in which the employer sells the
goods produced or manufactured by him or renders services, as the case may be, from such
establishment, bonus shall be payable only in respect of the amounting year in which the employer
derives profits from such establishment.

66. What is Minimum/Maximum Bonus payable?

Minimum 8.33% and Maximum 20%.

67. Whether I am eligible for getting Bonus even if my employer has not earned profit?

Yes.
 68. When bonus becomes payable?

Bonus becomes payable within a period of eight months from the close of the accounting year.

THE INDUSTRIAL DISPUTES ACT, 1947

69. What is an Award under the ID Act, 1947?

Award means an interim or final determination of any industrial dispute or of any question relating
thereto. The determination must be by any Labour Court, Industrial Tribunal, or National Tribunal.
It includes an arbitration award under Section 10A

70. What is closure under the ID Act, 1947?

Closure means the permanent closing down of a place of employment of part thereof

71. What is Lock out under the ID Act, 1947?

Lock Out means the closing of a place of employment, or the suspension of work, or the refusal by
an employer to continue to employ any number of persons employed by him.

72. What are right of workmen laid off for compensation?

Workmen who have completed one year of services shall be eligible for compensation equal to fifty
per cent of total of the basic wages and dearness allowance.

73. What is retrenchment under the ID Act, 1947?

Retrenchment means termination by the employer for any reason whatsoever, otherwise than as a
punishment inflicted by way of disciplinary action.

74. What is a works committee under the ID Act, 1947?

The works committee shall consist of equal number of representatives of employer and workmen
to promote measures for securing & preserving amity and good relations between the employer
and workmen engaged in the establishment.

75. What is the number of workmen required in any industrial establishment to

form a Works Committee?

One hundred or more workmen.

76. What is the failure of conciliation proceeding under the ID Act?

If no settlement is arrived at during the conciliation, the conciliation officer will send a report (Under
sec. 12(4)) to the Government soon after the close of investigation setting forth the steps taken by
him for ascertaining the facts and circumstances relating to the dispute and for bringing about a
settlement together with full statement of such facts and circumstances and the reason on account
of which, in his opinion, a settlement could not be arrived at.

77. What is Reference for adjudication under Sec. 10?

Where the appropriate Government is of opinion that any industrial dispute exists of is
apprehended, it may at any time by order in writing refer the dispute to a Board for promoting a
settlement thereof or refer any matter appearing to be connected with or relevant to the dispute to
a Court for inquiry or refer the dispute of any matter specified in the second schedule, to a Labour
Court for adjudication or refer the dispute or any matter appearing to be connected with, or
relevant to the dispute, whether it relates to any matter specified in the second schedule or the
their schedule, to a tribunal for adjudication.

78. What are the conditions precedent for retrenchment Section 25F (Chapter VA)?

No workmen employed in any industry who has been in continuous service for not less than one
year under an employer shall be retrenched by the employer until, the workmen has been paid
compensation to fifteen days average

79. What is Chapter V-A and V-B under ID Act?

Chapter V-A and V-B relates Lay-off, Retrenchment and Closure in certain establishments

80. What is Labour Courts ?

The appropriate Government may, by notification in the Official Gazette Constitute one or more
Labour courts for the adjudication of Industrial Disputes relating to any mater specified in the
Second Schedule and for performing which other function as may be assigned to them under the
Act which performing which other function as may be assigned to them under the Act performing
which other function as may be assigned to them under the Act

81. What is Industrial Tribunal?

A Forum for adjudication of Industrial disputes relating to any matter, whether specified in the
second schedule or the third schedule
82. What is the change in service condition under Sec 9A?

No employer, who proposes to effect any change in the conditions of service application to any
workmen in respect of any matter, specified in the fourth schedule shall effect such change without
giving notice to the workman likely to be affected by such change a notice in the prescribed
manner of the nature of the change proposed to be effected or with in twenty one days of giving
such notice. This section is applicable on certain conditions.

83. How an Individual workman can raised an ID after dismissal etc. ?

An Individual workman can raise ID under section 2A of ID Act, before Conciliation Officer.
In case management not agreed for settlement, workman directly can approach Labour
Court or Industrial Tribunal after expiry of 45 days from the date of raising the Industrial
Disputes before Conciliation Officer.

HOURS OF EMPLOYMENT REGULATIONS FOR RAILWAY SERVANTS, 2005

84. What is a Duty Roster?

The document which shows the duration of the hours of employment and period of rest of the
employee

85. What is Periodic Rest?

The rest granted to railway servant each week or periodically is known as periodic rest

86. What is period of inaction?

A period of inaction is a period of time during which the employee must remain present on duty at
his place or work although not exercising physical activity or sustained attention

87. What is Long on ?

A long on is a period of duty over 8 hours in the case of intensive workers, over 10 hours in
the case of continuous workers and over 12 hours in the case of Essentially intermittent workers

88. What is Night Duty under the Hours of Employment Regulations (HOER) ?

Any part of rostered hours of duty which falls between the hours of 10 pm to 6 am shall be treated
as night duty.

89. What is a Intensive Classification ?

Strenuous nature of duty involving continuous concentration or hard manual labor with little or no
periods of relaxation

90. What is a Essentially Intermittent Classification?

The employment of railway servant where daily duty hours include periods of inaction aggregating
6 hours or more, including at least one period of not less one hour or two periods of not less than
half an hour each, during which the railway servant is on duty but is not called upon to display
either physical activity or sustained attention.

CHILD LABOUR (PROHIBITION AND REGULATION) ACT, 1986

91. Who is a Child under the Act ?

Child means a person who has not completed his fourteenth year of age.

92. What are the occupations where employment of Child is prohibited?

No child shall be employed or permitted to work in any of the occupations set forth in Part A of the
Schedule or in any workshop wherein any of the processes set forth in Part B of the Schedule is
carried on.

93. What are the registers to be maintained under Act?

Register showing the name of date of birth of every child so employed or permitted to work, hours
and periods of work of any such child and intervals of rest, the nature of work of any such child.

94. What are the notices to be displayed under the Act?

An abstract of Section 3 and 14 of the Act in Local Language and English.

THE MATERNITY BENEFIT ACT, 1961

95. What establishments under the Central Sphere are covered under the Act?

Mines and other establishments wherein persons are employed for the exhibition of equestrian,
acrobatic and other performances are covered under the Central sphere.

96. When is employment of women prohibited under the Act?

During six weeks immediately following the day of her delivery or her miscarriage.

97. What are the benefits available under the Act?

Leave with wages twelve weeks.

98. Who is eligible for benefits under the Act?

A women employee who has actually worked in an establishment of the employer from whom she
claims maternity benefits, for a period of not less 80 days in the twelve months immediately
preceding the date of here expected delivery, shall be entitled to maternity benefit.

99. What is the information to be displayed at work spot?

An abstract of the provisions of the Act.

THE INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946

100. What is a Standing Order?

A Statement defining the conditions of Employment in an establishment.

101. What is the criteria for applicability of the Act?

The Act is applicable to industrial establishment wherein one hundred or more workmen are
employed.

102. What is the time limit for submission of a draft Standing Orders under this Act?

Within six months from the date on which this Act becomes applicable to an Industrial
Establishment.

103. Who is the Certifying Officer?

Regional Labour Commissioner (Central)

LABOUR LAWS (EXEMPTION FROM FURNISHING RETURN &

MAINTAINING REGISTER BY CERTAIN ESTABLISHMENT) ACT, 1988

104. Who is covered under this Act?

This Act applied to –

(i) Small Establishment - The Establishment in which not less than 10 and not more
than 19 persons are employed or were employed on any day in preceding 12 months.

(ii) Very Small Establishment - The Establishment in which not more than 09 are
employed or were employed on any day in preceding 12 months.

105. How many Registers are required to be maintained in–

(i) Small Establishment (ii) Very Small Establishment.

The Registers required to be maintained by both Establishments are as under –

(i) Small Establishment - Form D and Form E Registers.

(ii) Very Small Establishment - Form B Form C and Form D Registers.

106. How many returns are to be submitted by Employer in -

(i) Small Establishment (ii) Very Small Establishment

In both Establishments, a Core Return in ‘Form A’ is required to be submitted.