Labour Law In Tamil Nadu

In this post, we will discuss the following topics under labour law in Tamil Nadu.

• Introduction
• Labour laws, applicability and compliance in Tamil Nadu

Introduction

Labour law in Tamil Nadu regulates the functioning of establishments, ensures the well-being, health and safety of labourers and maintains the relationship between employer and employee and equalities of labourers. In this post, we will see what acts are there to follow and maintain compliance with labour law in Tamil Nadu.

There are various acts that cover the laws and applicability in Tamil Nadu, such as the Trade union act in Tamil Nadu, Industrial dispute act, payment of wages act, shop and establishment act, professional tax, factories act, employee state insurance act, employee provident fund act, contract labour act and others.

Below there, we will see the details of labour law in Tamil Nadu.

Labour laws, applicability and compliance in Tamil Nadu

To start a new business or you have already started, then you need to comply with the norms of labour laws of Tamil Nadu.

1. Labour Laws on Trade Union Act, 1926

This act defines the law & regulations to be registered under trade unions.

Applicability – This act applies to all kinds of union workers and associations of employees. And it aims to formulate the management of labour relations.

Key points –  Rights and liabilities to be registered under a trade union, obligations to impose on registered trade unions, and Governing the condition of registered trade unions.

There are the particular Sections that deals with  Registration of Trade Union – 

1. Section – 4 deals with the mode of registration 
2. Section – 5 deals with the application for registration
3. Under Section – 6 act deals with the rules of trade union
4. Section – 8 for registration
5. Under section – 9 deals with the issue of registration certificates
6. Section – 9A requirement for member of trade union
7. Section – 10 cancellation of certificate

2. The Tamil Nadu Labour Welfare Fund Act, 1972

This act provides for the constitution of the fund for labour welfare and other certain related works.
Under this act, the government of Tamil Nadu has amended the contributions to the labour welfare fund under the Rule 11-A. The contribution to the welfare fund was Rs.10, but now has been increased to  Rs.20 for the employees. For employers, the previous contribution was Rs.20, now it is Rs.40.

To know more about the details of a labour welfare fund for all states, click here.

Also, you can download the official circular.
Applicability –Tamil Nadu welfare fund is applicable for entire states of Tamil Nadu.

3. The Industrial Disputes Act, 1947

The industrial disputes act provides for the regulation of layoff and retrenchment. And it aims to ensure the harmony, peace and dignity of workers by providing the settlements of industrial disputes through the procedure of investigation.

Applicability – Provisions for compensation to the workers on account., unfair trade, labourer practice on the part of employers., follow the proper procedure of the government to close down or layoff the organisation.

4. The Tamil Nadu Shops and Establishments Act, 1947

An act regulates the protection of the rights of workers. And provides the regulation of working hours, leave and benefits, working conditions, internal service terms, payment of wages, laws for child labour, and others data maintenance.

Applicability – As per the state government, it is applicable for entire states of Tamil Nadu.

Exemptions – 1. The person who is employed in an organisation in the position of management then they will be exempted from the registration under this act.

2. Establishments involved in factories, mines and oil fields.
3. Temporarily establishments, who help their establishment for a specific period in any festivals or fairs, but should not exceed more than 15 days, then they are exempted from the registration from this act.
4. The establishments under the government sectors are exempted from registration under this act.
5. Establishment/persons who are involved under the travelling, caretaker or canvassers are exempted from the registration under this act.

Compliances –  There are various forms, that comply the compliance –

• Form B – Register of Fines
• Form C – Register of Deductions
• Form D – Register of Advances made to employees
• Form H – Record of Hours of Work of persons
• Form P – Register of Advance Paid, Deductions for Damages or Losses and Fines 
• Form Q – Attendance Register with Leave Credits
• Form R – Wage Register
• Form S – Notice of Daily Hours of work, rest, interval
• Form T – Wage Slip

Leaves under this act – 

Type Of Leave	Leave Entitlement	Carry Forward
Casual Leave (CL)	12 days (while you work first 12 month of continuous service)	NA
Earned (EL) or Privilege Leave (PL)	12 days (after 12 months of your continuous service)	45
Sick Leave (SL)	12 days (while you work first 12 months and further continuous service)	NA

5. The Industrial Establishments (Standing Orders) Act, 1946

Under this act every employer has to define the policies of employment under them and to make the conditions known to the workmen employed by them.

Applicability – The act applies for any industrial establishment where in 50 or more workers are employed.

6. The Payment of Wages Act, 1936

This act provides the protection of rights related to the payment of wages by the employer, unnecessary deduction, fixation period, and unnecessary delay in payment.

Applicability –  It is applied to all employed persons directly or indirectly (through contractor) in all sectors of establishment.

Compliance – 

1. Under Form IV –Submission of Annual Return
2. Fixation of payment to the workers, but that should not exceed more than 10 days.
3. Employers have to make the payment of wages to the employee, before the 10th of every month.
4. Every employer has to maintain the records of registration at least 3 years after the date of entries recorded.
5. Registration  of deduction for any kind of damage or losses.
6. Registration  for advance made payment
7. The registration for fine for employee by the employer, if any
8. Register of payable or paid.

7. Tamil Nadu Factories Act, 1950

This act is enacted for the occupational safety, health and welfare of workers at the workplace.

Applicability –  This act is applicable for all kinds of factories including the government.

This act is applicable for 10 or more labour who are employed with the use of power, 20 or more labour are employed without the use of power and if less than the 10 labour are employed by the government.

Following Forms under Compliance  –

• Form 1 – Application for permission to construct, extend or take into use any building as a factory
• Form 25-B – Service Card
• Form 26 – Register of Accidents
• Form 10 – Overtime muster roll for exempted workers
• Form 2 – Application for registration and grant or renewal of license for the year
• Form 3 – Register of Factories
• Form 3-A – Notice of change of Manager
• Form 4 – Registration & Licence to a factory work
• Form 11 – Notice Periods of work for adult workers
• Form 18-B – Report of further details of accident
• Form 5 – Certificate of fitness
• Form 12 – Register of adult workers
• Form 21 – Half Yearly Return
• Form 6 – Humidity Register
• Form 7 – Record of lime-washing, painting, etc
• Form 14 – Register for young person workers
• Form 22 – Combined Annual Return
• Form 8 – Report of examination pressure vessel or plant
• Form 15 – Register of leave with wages
• Form 25 – Muster Roll
• Form 8-A – Report of examination of water-sealed gas-holder
• Form 17 – Health Register
• Form 9 – Register of Compensatory holidays
• Form 18 – Report of Accident

8. The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952

This act provides for the institution PF for employees in factories and establishments.

Applicability –  Under this act, mandatory registration for employers if they have more than 20 employees working in the establishment.

Compliance – 

• Form 3A and 6A – Providing the details for annual return and monthly contribution
• This act has been initiated against the directors for recovery of dues.

9 . The Employees’ State Insurance Act, 1948

This act oversees the provision of medical benefits for employees and their families.
Applicability –  It is applicable for every factory and establishment if they have 10 or more employees working and earning wages less than Rs. 21,000 or equal.
Compliance – 

• Form 5 – Submission of half yearly return
• Registration for inspection and maintain the data
• Register of payment of contribution for employer
• Register of attendance and wages of employees.

10. The Tamil Nadu Industrial Establishments (National and Festival Holidays) Act, 1958

This act provides grants of national holidays to employed persons.

Applicability –  It applies for entire states.

11. Tamil Nadu Professional Tax

The Professional Tax Act levies the tax on professional, Trade, Calling & Employment.The tax is collected from the salary of employees.

Click here, To know more details about the Professional Tax Rate of Tamil Nadu.

Applicability – It applies to the whole of the state.

12. The Minimum Wages Act, 1948

Under this act, the rate of minimum wages has been fixed for all classes of employment. Tamil Nadu Government enacted the minimum wages rules for monitoring wages.

Details about the entire state, click on the rate of minimum wages in Tamil Nadu.

Applicability – This Act applies to all scheduled employment, for all sectors of employment.

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

Applicability – It applies for every establishment who has hired or employed 20 employees or more on any day in the accounting year.
Compliance – 

• Form VI-A –   Return filing/notice of compilation or commencement by the contractor within 15 days of commencement or completion.

• Form VI-B –  Return filing/notice of compilation or commencement by the employer within 15 days of commencement or completion.

• Form XXV – Submission of annual return by the employer 

• Form XXIV – Submission of half yearly return by the contractor

There are some other acts applicable – 

1. The Beedi and Cigar Workers (Conditions and Employment) Act, 1966.
2. The Employment Exchanges (Compulsory Notification of vacancies) Act, 1959.
3. The Child Labour (Prohibition and Regulation) Act, 1986.
4. The Maternity Benefits Act, 1961.
5. The Motor Transport Workers Act, 1961.
6. The Apprentices Act, 1961.
7. The Payment of Bonus Act, 1965.
8. The Payment of Gratuity Act, 1972.
9. The Plantations Labour Act, 1951.
10. The Workmen’s Compensation Act, 1933.
11. The Working Journalists and other Newspaper Employees (Conditions of service and Miscellaneous Provisions) Act, 1955.
12. The Standards of Weights and Measures (Enforcement) Act, 1985.
13. The Tamil Nadu Catering Establishment Act, 1958.

This brings us to the end of our discussion on Labour law in Tamil Nadu. Let us know if you have  any other questions and opinions on this topic. Mention the comment box below.