When employer start a factory then he provides a various facility to workers under factory act 1948, employee state insurance act 1948, employees provident act 1952, workmen compensation act 1923, minimum wages act 1936, industrial disputes act 1947, payment of wages act 1948. State and central government have made several act related to small scale industry because its main aim to provide best facility to their workers.
Legal consideration for small scale business:
- Factory act 1948
- Employee state insurance act 1948
- Employees provident act 1952
- Workmen compensation act 1923
- Minimum wages act 1936
- Industrial disputes act 1947
- Payment of wages act 1948.
Factories act 1948: The factory act 1948 is that wages manufacturing process is carried on specified number of employees (more than 20 people employed in a factory. and The main object of the factory act is that to provide safety to the workers & to provide healthy working condition to the workers.
Health of workers:
- Proper ventilation and temperature
- Proper lighting
- Latrines & urinals
- Prevention of overcrowding
- Drinking water
- Spittoons
- Bathroom facility
- Prevention of dust
- Artificial humidification
- Better working condition and limited time hours for work
Employees provident act 1952:
The main objective of this act is that provide provident fund to the workers for old age or after retirement in the form of pension or P.F. Only those people are included in this act whose salary is less than 5000/- rupees. Both employer and employee contribute for this act at the prescribed rate.
Employee state insurance act 1948:
It provides many other benefit to their employee and their dependent like medical benefit, sickness benefit, maternity benefit (when women pregnant then company provide 12 week holiday and either with or without payment it depends upon the organization), benefit to their dependent, funeral benefit.
Workmen compensation act 1923:
When any employee injured during working hours from the machine then company is liable for the payment of the compensation. But when this injury is recovered within three days then company is not liable for any type of compensation.
Minimum wages act 1936:
The main object of the company act is that to prevent the exploitation of workers.
Industrial disputes act 1947:
Industrial disputes act 1947,
- maintain a peaceful relationship between the employer and employee
- Peaceful settlement among them
- Prevent from the layoff, retrenchment to the employee
- Prevent to the company from illegal strike.
Payment of wages act 1948:
Fixation of wage period: The main object is that to secure payment of wages to workers at regular time.
Time of Payment: two ways of payment:
When employee is less than 1000: When employee is less than 1000 than payment of wage period before the expiry of the seventh day after the last date of the wage period.
Other cases: in other cases, payment of wages before the expiry of 10th day after the last date of the wage period.
Deduction of payment = (salary- fines- tax- absence- provide house rent accommodation- losses incurred)
Late payment of wages:
