FAQ's

Q.6. How do we calculate amount payable as Gratuity?

Ans. It emanates from the provisions of PAYMENT OF GRATUITY ACT, 1972 that it is payable to such employees who have completed five years of continuous service, further there is no wage ceiling for entitlement.

CAUTION:

• Gratuity shall be paid to an employee within thirty days from the date of receipt of application for gratuity.


• However, in case any employee fails to submit an application, then his right towards gratuity never forfeits.


• Forfeiture or deduction could be made only when services of the employee are terminated for his riotous or disorderly conduct or when his conduct constitutes offence involving moral turpitude as determined by the employer.

RATE:

For every completed year (including period of more then six months) of service, rate of fifteen day's wages computed on the basis of 'last wages drawn', subject to ceiling of Rs.10,00,000/- as gratuity (as amended on 18-05-2010).

Q.7. How is earned leave, casual leave and medical leave entitlement determined for an employee? Is this to be credited in the beginning of the year or at the end?

Ans.

• EARNED LEAVE



Under M.P. SHOPS & ESTABLISHMENT ACT, 1958, for a permanent employee earned leave is referred to as privileged leave |P.L.|. An employee is entitled for a total period of 30 days P.L. if he works for continuous period of 12 months. Rules to avail the benefit of leave are to be framed by the concerned establishment under this enactment.

Under FACTORIES ACT, 1948, an employee who worked for 240 days or more during the previous year would be entitled to avail leave in the current year for the days he has worked in previous year at the rate of One day for every 20 working days. In case an employee who joins during the year, his minimum qualifying service for leave benefit will be taken as 2/3rd working-days.

• CASUAL LEAVE



Under M.P. SHOPS & ESTABLISHMENT ACT, 1958, an employee could be extended 14 days of casual leave in every year. Under the STANDARD STANDING ORDERS, an employee is entitled to 7 days of CL. Provisions of this Act are applicable to scheduled factories which employ 20 or more employees.

• MEDICAL LEAVE



No statutory provisions have been provided for extending medical leave, except under the ESI Act, 1948.

Q.8. How do we calculate the amount of LEAVE ENCASHMENT?

Ans. Leave encashment under Factories Act, 1948 could be made to an employee who ceases from employment with balance of leave subject to maximum of 30 days; and under M.P. Shops & Establishments Act, 1958 for 90 days as per prevailing salary calculation system.

Q.9. How do we calculate Shram Kalyan Nidhi?

Ans. This amount is required to be remitted every six months, on the basis of names of employees on roll as on 30th June & 31st December every year. Remittances are to be made to 'Labour Welfare Board' constituted under M.P.SHRAM KALYAN NIDHI ADHINIYAM, 1982. Recently, as per the law laid down by Madhya Pradesh High Court in Carmel Convent, even educational institutions are covered under the Adhiniyam.

Employees' share: Rs.6/- per employee to be deducted from salary;

Employer's share: Rs.18/- per employee for every six months subject to minimum of Rs.500/-.

Q.10. Where do we find the scale of fees payable for registration/renewal of licence under the Factories Act, 1948? How do we calculate the enhanced rate of fees payable with effect from 01-01-2011 for the said purpose?

Ans. As per notification published in M.P.Rajapatra (Asadharan) dated 31.12.2001 the fees prescribed in Schedule 'A' for different categories of Factories should be increased for 30 % of the base amount and after avery three years the available rate will become base amount for calculation of further increase. For the prescribed rates [please click here] and for the rates as applicable from 01-01-2011 [please click here]. Further, the statutory form has been prescribed which shall contain all the requisite details about the establishment, and is required to be filled in for the purposes of registration/renewal of the licence.

Q.11. What are the deadlines for various compliances under the labour laws? What are the various forms in which returns etc. have to be submitted?

Ans.

Act	Form to be submitted	Last date of submission	Statutory authority	Judicial authority
Contract Labour Act	Half-yearly return: Form no.14	Within 30 days from close of half-year: Jan. or July	Assistant Labour Commissioner	CJM/RLC/Labour Court
EPF Act	Payment of contribution	15th of next month	PF Commissioner	EPF Appellate Tribunal, New Delhi
	Monthly return: Form no. 12A/5/10	25th of next month	PF Commissioner	CJM/Labour Court
	Form no. 3A & 6A	30th April of next year	PF Commissioner	CJM/Labour Court
ESI Act	Payment of contribution	21st of next month	ESI Corporation, Indore	CJM/Labour Court
	Half-yearly return form no.6	Within 42 days from close of half-year: Sept. or Mar.	Branch Office	CJM/Labour Court
	Declaration form	Within 10 days from date of employment	Branch Office	CJM/Labour Court
Factories Act	Annual return: Form no.27	31st January of next year	Inspector of Factories	CJM/Labour Court
	Half-yearly return: Form no.28	15th July or 15th January of next half-year	Inspector of Factories	CJM/Labour Court
Minimum Wages Act	Annual return: Form no.3	31st January of next year	Assistant Labour Commissioner	CJM/Labour Court
Payment of Bonus Act	Form A, B, C & D	Immediately after payment, but before 30th Nov. of next financial year	Assistant Labour Commissioner	CJM/Labour Court
Payment of Gratuity Act	Notice of opening: Form 'A'	At the time of start of establishment	Assistant Labour Commissioner	Deputy Labour Commissioner
	Notice of change: Form 'B'	In case of change of address or management	Assistant Labour Commissioner	Deputy Labour Commissioner
Payment of Wages Act	Form no.4	15th February of next year	Inspector of Factories	CJM/Labour Court