Labour Law

Employees Provident Fund (EPF)

The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 provides social security benefits to employees through provident fund, pension, and insurance schemes in eligible establishments.

Provident Fund benefits

Pension scheme coverage

Deposit linked insurance

Applicable to eligible establishments

Employees State Insurance (ESIC)

The Employees’ State Insurance Act, 1948 provides social security benefits to employees for illness, maternity, injury, disability, and employment-related risks. It is administered by the Employees' State Insurance Corporation.

Medical benefits for employees and dependents

Sickness and maternity coverage

Injury and disability compensation

Financial support for employment-related risks

State Professional Tax

The State Professional Tax Act allows state governments to levy tax on professions, trades, callings, and employment under Article 276 of the Constitution of India. The maximum annual tax limit was originally ₹250 and was later increased to ₹2,500 through the Sixtieth Amendment of the Constitution of India.

Applicable on profession, trade, calling, and employment

Levied by state governments

Maximum limit is ₹2,500 per annum

Collected by state or local authorities

Labour Welfare Fund

The Maharashtra Labour Welfare Fund Act became effective in 1953 and applies to establishments in Maharashtra employing 5 or more persons, including contract labour. It covers employees except those in managerial or supervisory roles earning above ₹3,500 per month, and provides welfare benefits through contributions from employees, employers, and the state government.

Applicable to establishments with 5 or more employees

Covers direct and contract employees

Employer contributes three times the employee contribution

Supported by state government contribution

Shop & Establishment

The Maharashtra Shops and Establishments Act, 1948 regulates employment and working conditions in shops and commercial establishments.

Applicable to shops and commercial establishments

Covers hotels, restaurants, and theatres

Registration certificate is mandatory

Contract Labour (Regulation & Abolition)

The Contract Labour (Regulation and Abolition) Act, 1970 regulates the employment of contract labour in certain establishments and provides for its abolition in specific situations.

Principal employer must obtain registration certificate

Contractor must obtain contract licence

Applicable to covered establishments and contractors

Minimum Wage

The Minimum Wages Act, 1948 provides for fixing minimum wage rates in scheduled employments to ensure fair wages and social justice for workers.

Minimum wages include Basic and Dearness Allowance (DA)

Applicable to scheduled employments

Rates are revised periodically by the government

Maternity Benefit

The Maternity Benefit Act, 1961 provides maternity benefits to women employees and applies across India to eligible establishments.

Applicable to factories, mines, plantations, shops, and establishments

Covers establishments employing 10 or more persons

Not applicable where Employees' State Insurance Act, 1948 provisions apply

Payment of Bonus

The Payment of Bonus Act, 1965 provides for payment of bonus to employees in eligible establishments across India.

Applicable to factories and establishments with 20 or more employees

Can be extended to establishments with 10 or more employees

Covers employees in skilled, unskilled, supervisory, technical, and clerical work

Payment of Gratuity

The Payment of Gratuity Act, 1972 provides gratuity benefits to employees working in eligible establishments across India.

Applicable to factories, mines, plantations, ports, railways, shops, & establishments

Covers establishments with 10 or more employees

Includes notified establishments specified by the Central Government

Payment of Wages

The Payment of Wages Act, 1936 regulates timely payment of wages to employees and applies across India.

Applicable to employees in factories and specified establishments

Covers direct and contract employees

Applicable to employees drawing wages up to ₹6,500 per month


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