Description
PPT dealing with the regulatory framework that deals with the working conditions in a country.
The Regulatory Framework in HRM – Indian Context
What is a Regulatory Framework
• The body of law that stipulates the minimum legal requirements to be complied with in matters related to the setting up and running of industrial organisations.
• The framework lays down a mechanism for ensuring compliance.
• Stipulates penalties for non-compliance. • Each law specifies the appropriate authority for enforcing the particular statute.
• Specifies due process of appeal.
Why do we Need a Regulatory Framework
• Employers and Employees (Collectivity) • Conflicting interests • Co-operation/collaboration & Conflict – reality of co-existence • State the custodian – hence regulator role • Minimum essential standardisation between different work organisations (regulate both
employers and employees)
Who Frames the Law
• The State – in its capacity as the regulator • In some cases as for social security it is the Central Government.
• In other cases, as for the running of commercial establishments, it is the respective State Government.
The Current Framework in India
1. 2. 3. 4. 5. 6. Laws governing Laws governing Laws governing Laws governing Laws governing Laws governing working conditions service conditions remuneration social security employment procedure industrial relations
Laws Governing Working Conditions
1. The Factories Act, 1948 2. The Shops and Establishment Act, 1954 3. The Employees (Conditions of Service) & Miscellaneous Provisions Act, 1955 4. The Boilers Act, 1923 5. The Dock Labourers Act, 1934 Similarly for various special industries
Laws Governing Service Conditions
1. Industrial Employment (Standing Orders) Act, 1946 2. Contract Labour(Regulation and Abolition) Act, 1970 3. Interstate Migrant Workmen (Regulation of Employment & Conditions of service) Act, 1979
Laws Governing Remuneration
1. Payment of Wages Act, 1936
2. Minimum Wages Act, 1948 3. Payment of Bonus Act, 1965
Laws Governing Social Security
1. Employees State Insurance Act, 1948 2. Employees Provident Fund & Miscellaneous Provisions Act, 1952 3. Payment of Gratuity Act, 1972 4. Equal Remuneration Act, 1976 5. Maternity Benefit Act, 1961 6. Workman’s Compensation Act, 1923
Laws Governing Industrial Relations
1. Industrial Disputes Act, 1948
2. Bombay Industrial Relations Act, 1948 3. Trade Unions Act, 1926
Laws Governing Employment Procedure
1. Apprentices Act, 1961
2. Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 3. Industrial Statistics Act, 1942
Some Important Provisions
Working Conditions
1. Safety and Occupational Health Surveys – • Health : cleanliness, dirt removal, drainage, frequency of whitewashing and painting; adequate ventilation and comfortable temperature, lighting and drinking water, work space, prevent inhalation and accumulation of dust, separate facilities for males and females
Working Conditions
1. Safety and Occupational Health Surveys –
•
Safety : fencing of dangerous parts including moving parts of
machines when in motion, covering of pits, keeping staircases, etc. free from obstruction; good and acceptable mechanical construction, sound material and adequate strength, no overloading; examination by specially trained adults;
2. 3. 4. 5.
Inspection by Factory Inspector Protection from hazardous processes – storage Record maintenance Appointment of Safety Officers
Service Conditions
1. Nature of employment - classification 2. Define and standardise conditions of employment and make them known to all 3. Publication of working time, shift timings 4. Attendance- late coming, absence, leave, holidays 5. Disciplinary action and process - misconduct, penalties, appeal process 6. Change process - conditions
Wages
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Definition of ‘wage’- expressible in money terms, excluding value of housing, lighting, medical facilities, drinking water Minimum statutory wages by classification of employees One rest day in every seven days Fix number of working hours Frequency of wage payment- not exceed a month Wages to be paid on a working day Payment in cash or otherwise with written permission of employee Legally permissible deductions – employer cannot make any deductions from wages other than those permissible; PF, union membership fee, income tax; Rate of overtime payment Discharged employee to be paid wages within two days of discharge
Social Security
1. 2. 3. 4. 5. 6. Provident Fund – fund to be created by an equal contribution from employer and employee; managed by a BOT; interest on accumulated funds; Membership of fund – all employees upto a salary of Rs. 6500/- pm; from date of joining Withdrawal from fund- regulated; prescribed nature of loans, purpose, whether refundable or not and process for withdrawal Withdrawal of membership – at superannuation or on leaving active service; minimum unemployment period of two months Provision for dependent Annual statement of fund position
Social Security
8. Pension 9. Gratuity 10. ESI
Conflicts and Disputes
What the Regulator Regulates
• Expanse – The Coverage – physically setting
up ( registration, starting operations), employment
(service conditions, wage, social security, health, safety and welfare), regulation of conflicts and dispute (different forms of work disruption viz.strike, lock-out, lay off, etc.)
• Regulate and monitor compliances
• Penalise for violation
What to Look For In The Framework
1. Applicability – to the industry, organisation and particular employee 2. Authorities under the particular law – who can enforce, to whom should one appeal
3. Definitions of various related terms e.g. wages, workmen, establishment, factory, year
What to Look For In The Framework
4. Required Compliances – the provisions, returns, payments 5. Penalties for non-compliance – who can be punished, what is the type and extent of punishment, what is the redressal
6. Redressal mechanisms for different parties – whether appeal is possible, how, to whom, time frames for appeal
Specific Application of the Framework
• Start of the Organisation – registration, licencing,(FA, S & E,) • Running of the organisation – working conditions (FA, S & E,) • Employment (remuneration, service conditions, working
conditions, conflicts, indiscipline, penalty, appeal, participation, terms & conditions of employment, social security, health)
• Retrenchment • Closure of the Organisation
Managerial Action for Compliance
• Set up systems to ensure automatic compliance. • Systems ensure a minimum degree of standardisation, transparency, objectivity, consistency. Importantly, systems help bring in accountability and also become a measure to check deviations
Contd.
Managerial Action for Compliance
• Formalise and document service rules and communicate these – leave, holidays, salary payment dates,
define acts of indiscipline, stipulate the process of dealing with indiscipline, process of appeal and grievance redressal, penalties and authorities;
• Provide clear letter of appointment; • Set up an employee grievance handling mechanism;
Contd.
Managerial Action for Compliance
• Adhere to organisation systems for being law compliant – authorising leave, documenting
situations of conflict, providing written evidence of misconduct, displaying notices, taking consent letters, filing returns, making payments, etc.;
• Follow the due formal process for resolution of conflicts and disputes that are of a serious nature;
Managerial and Organisational Significance of The Legal Framework
Macro 1. Corporate Social Citizenship 2. Professional Ethics 3. Constitute Good Employment Practices Individual 1. Organisation Ownership and Membership 2. Indicates support for colleagues’ performance 3. Professional membership
doc_602553264.ppt
PPT dealing with the regulatory framework that deals with the working conditions in a country.
The Regulatory Framework in HRM – Indian Context
What is a Regulatory Framework
• The body of law that stipulates the minimum legal requirements to be complied with in matters related to the setting up and running of industrial organisations.
• The framework lays down a mechanism for ensuring compliance.
• Stipulates penalties for non-compliance. • Each law specifies the appropriate authority for enforcing the particular statute.
• Specifies due process of appeal.
Why do we Need a Regulatory Framework
• Employers and Employees (Collectivity) • Conflicting interests • Co-operation/collaboration & Conflict – reality of co-existence • State the custodian – hence regulator role • Minimum essential standardisation between different work organisations (regulate both
employers and employees)
Who Frames the Law
• The State – in its capacity as the regulator • In some cases as for social security it is the Central Government.
• In other cases, as for the running of commercial establishments, it is the respective State Government.
The Current Framework in India
1. 2. 3. 4. 5. 6. Laws governing Laws governing Laws governing Laws governing Laws governing Laws governing working conditions service conditions remuneration social security employment procedure industrial relations
Laws Governing Working Conditions
1. The Factories Act, 1948 2. The Shops and Establishment Act, 1954 3. The Employees (Conditions of Service) & Miscellaneous Provisions Act, 1955 4. The Boilers Act, 1923 5. The Dock Labourers Act, 1934 Similarly for various special industries
Laws Governing Service Conditions
1. Industrial Employment (Standing Orders) Act, 1946 2. Contract Labour(Regulation and Abolition) Act, 1970 3. Interstate Migrant Workmen (Regulation of Employment & Conditions of service) Act, 1979
Laws Governing Remuneration
1. Payment of Wages Act, 1936
2. Minimum Wages Act, 1948 3. Payment of Bonus Act, 1965
Laws Governing Social Security
1. Employees State Insurance Act, 1948 2. Employees Provident Fund & Miscellaneous Provisions Act, 1952 3. Payment of Gratuity Act, 1972 4. Equal Remuneration Act, 1976 5. Maternity Benefit Act, 1961 6. Workman’s Compensation Act, 1923
Laws Governing Industrial Relations
1. Industrial Disputes Act, 1948
2. Bombay Industrial Relations Act, 1948 3. Trade Unions Act, 1926
Laws Governing Employment Procedure
1. Apprentices Act, 1961
2. Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 3. Industrial Statistics Act, 1942
Some Important Provisions
Working Conditions
1. Safety and Occupational Health Surveys – • Health : cleanliness, dirt removal, drainage, frequency of whitewashing and painting; adequate ventilation and comfortable temperature, lighting and drinking water, work space, prevent inhalation and accumulation of dust, separate facilities for males and females
Working Conditions
1. Safety and Occupational Health Surveys –
•
Safety : fencing of dangerous parts including moving parts of
machines when in motion, covering of pits, keeping staircases, etc. free from obstruction; good and acceptable mechanical construction, sound material and adequate strength, no overloading; examination by specially trained adults;
2. 3. 4. 5.
Inspection by Factory Inspector Protection from hazardous processes – storage Record maintenance Appointment of Safety Officers
Service Conditions
1. Nature of employment - classification 2. Define and standardise conditions of employment and make them known to all 3. Publication of working time, shift timings 4. Attendance- late coming, absence, leave, holidays 5. Disciplinary action and process - misconduct, penalties, appeal process 6. Change process - conditions
Wages
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Definition of ‘wage’- expressible in money terms, excluding value of housing, lighting, medical facilities, drinking water Minimum statutory wages by classification of employees One rest day in every seven days Fix number of working hours Frequency of wage payment- not exceed a month Wages to be paid on a working day Payment in cash or otherwise with written permission of employee Legally permissible deductions – employer cannot make any deductions from wages other than those permissible; PF, union membership fee, income tax; Rate of overtime payment Discharged employee to be paid wages within two days of discharge
Social Security
1. 2. 3. 4. 5. 6. Provident Fund – fund to be created by an equal contribution from employer and employee; managed by a BOT; interest on accumulated funds; Membership of fund – all employees upto a salary of Rs. 6500/- pm; from date of joining Withdrawal from fund- regulated; prescribed nature of loans, purpose, whether refundable or not and process for withdrawal Withdrawal of membership – at superannuation or on leaving active service; minimum unemployment period of two months Provision for dependent Annual statement of fund position
Social Security
8. Pension 9. Gratuity 10. ESI
Conflicts and Disputes
What the Regulator Regulates
• Expanse – The Coverage – physically setting
up ( registration, starting operations), employment
(service conditions, wage, social security, health, safety and welfare), regulation of conflicts and dispute (different forms of work disruption viz.strike, lock-out, lay off, etc.)
• Regulate and monitor compliances
• Penalise for violation
What to Look For In The Framework
1. Applicability – to the industry, organisation and particular employee 2. Authorities under the particular law – who can enforce, to whom should one appeal
3. Definitions of various related terms e.g. wages, workmen, establishment, factory, year
What to Look For In The Framework
4. Required Compliances – the provisions, returns, payments 5. Penalties for non-compliance – who can be punished, what is the type and extent of punishment, what is the redressal
6. Redressal mechanisms for different parties – whether appeal is possible, how, to whom, time frames for appeal
Specific Application of the Framework
• Start of the Organisation – registration, licencing,(FA, S & E,) • Running of the organisation – working conditions (FA, S & E,) • Employment (remuneration, service conditions, working
conditions, conflicts, indiscipline, penalty, appeal, participation, terms & conditions of employment, social security, health)
• Retrenchment • Closure of the Organisation
Managerial Action for Compliance
• Set up systems to ensure automatic compliance. • Systems ensure a minimum degree of standardisation, transparency, objectivity, consistency. Importantly, systems help bring in accountability and also become a measure to check deviations
Contd.
Managerial Action for Compliance
• Formalise and document service rules and communicate these – leave, holidays, salary payment dates,
define acts of indiscipline, stipulate the process of dealing with indiscipline, process of appeal and grievance redressal, penalties and authorities;
• Provide clear letter of appointment; • Set up an employee grievance handling mechanism;
Contd.
Managerial Action for Compliance
• Adhere to organisation systems for being law compliant – authorising leave, documenting
situations of conflict, providing written evidence of misconduct, displaying notices, taking consent letters, filing returns, making payments, etc.;
• Follow the due formal process for resolution of conflicts and disputes that are of a serious nature;
Managerial and Organisational Significance of The Legal Framework
Macro 1. Corporate Social Citizenship 2. Professional Ethics 3. Constitute Good Employment Practices Individual 1. Organisation Ownership and Membership 2. Indicates support for colleagues’ performance 3. Professional membership
doc_602553264.ppt