Social Security & Labour Welfare BBA VI UNIT - I Industrial Relation MEANING & CONCEPT The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’ “Industry” refers to “any productive activity in which an individual (or a group of individuals) is (are) engaged”. By “relations” we mean “the relationships that exist within the industry between the employer and his workmen.” The term industrial relations explains the relationship between employees and management which stem directly or indirectly from union-employer relationship. Industrial relations are the relationships between employees and employers within the organizational settings. The relationships which arise at and out of the workplace generally include the relationships between individual workers, the relationships between workers and their employer, the relationships between employers, the relationships employers and workers have with the organizations formed to promote their respective interests, and the relations between those organizations, at all levels The term industrial relations has a broad as well as a narrow outlook. Originally, industrial relations was broadly defined to include the relationships and interactions between employers and employees The relationships which arise at and out of the workplace generally include the relationships between individual workers, the relationships between workers and their employer, the relationships between employers, the relationships employers and workers have with the organizations formed to promote their respective interests, and the relations between those organizations, at all levels. industrial relations also includes the processes through which these relationships are expressed (such as, collective bargaining, workers’ participation in decision-making, and grievance and dispute settlement), and the management of conflict between employers, workers and trade unions, when it arises. DEFINITIONS The Industrial Relation relations also called as labor - management, employee employers relations. “Employer-employee relationships that are covered specifically under collective
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Social Security & Labour Welfare
BBA VI
UNIT - I
Industrial Relation
MEANING & CONCEPT
The term ‘Industrial Relations’ comprises of two terms:
‘Industry’ and ‘Relations’
“Industry” refers to “any productive activity in which an individual (or a group of
individuals) is (are) engaged”.
By “relations” we mean “the relationships that exist within the industry between the
employer and his workmen.”
The term industrial relations explains the relationship between employees and
management which stem directly or indirectly from union-employer relationship.
Industrial relations are the relationships between employees and employers within the
organizational settings.
The relationships which arise at and out of the workplace generally include the
relationships between individual workers, the relationships between workers and their
employer, the relationships between employers, the relationships employers and
workers have with the organizations formed to promote their respective interests, and
the relations between those organizations, at all levels
The term industrial relations has a broad as well as a narrow outlook. Originally,
industrial relations was broadly defined to include the relationships and interactions
between employers and employees
The relationships which arise at and out of the workplace generally include the
relationships between individual workers, the relationships between workers and their
employer, the relationships between employers, the relationships employers and
workers have with the organizations formed to promote their respective interests, and
the relations between those organizations, at all levels. industrial relations also includes
the processes through which these relationships are expressed (such as, collective
bargaining, workers’ participation in decision-making, and grievance and dispute
settlement), and the management of conflict between employers, workers and trade
unions, when it arises.
DEFINITIONS
The Industrial Relation relations also called as labor - management, employee
employers relations.
“Employer-employee relationships that are covered specifically under collective
bargaining and industrial relation laws”.
“Concerned with the systems, rules and procedures used by unions & employers to
determine the reward for effort & other conditions of employment.”
OBJECTIVES
a) To safeguard the interest of labor and management by securing the highest level of
mutual understanding and good-will among all those sections in the industry which
participate in the process of production.
b) To avoid industrial conflict or strife and develop harmonious relations,.
c) To raise productivity to a higher level in an aera of full employment by lessening the
tendency to high turnover and frequency absenteeism.
d) To improve the economic conditions of workers in the existing state of industrial
managements and political government
e) To Protect management and labor interests by securing mutual relations between
the two groups.
f) To Avoid disputes between management and labor, and create a harmonizing
relationship between the groups so productivity can be increased.
g) Ensure full employment and reduce absenteeism, hence, increasing productivity and
profits.
h) To Provide better wages and living conditions to labor, so misunderstandings
between management and labor are reduced to a minimum.
i) To bring about government control over plants where losses are running high, or
where products are produced in the public interest.
IMPORTANCE
a. Uninterrupted production
b. Reduction in Industrial Disputes
c. High morale
d. Mental Revolution
e. Reduced Wastage
f. Foster Industrial Peace
g. Promote Industrial Democracy
THREE ACTORS TO IR
a. EMPLOYEES
b. STATE
c. EMPLOYER
ROLE OF THREE ACTORS TO IR
Role of Employee:
a. To redress the bargaining advantage on one-on-on basis
b. To secure better terms and conditions for their members
c. To obtain improved status for the worker in his/her work
d. To increase implementation of democratic way of decision making at various
levels
Role of Employers
a. Creating and sustaining employee motivation
b. Ensuring commitment from employees
c. Negotiating terms and conditions of employment with TU leaders
d. Sharing decision making with employees
Role of State:
a. Labor policies
b. Labor laws
c. Industrial tribunals
d. Wage boards
e. Industrial relations policy
CAUSES FOR POOR IR
The main reasons are as follows:
a. An attitude of contempt towards the workers on the part of the management.
b. Inadequate fixation of wages or improper wage structure.
c. Indiscipline
d. Unhealthy working conditions at the workplace.
e. Lack of human relations skills on the part of supervisors and managers.
f. Desire of workers for higher bonus, wages or daily allowances.
g. Desire of employers to pay as little as possible to its workers.
h. Inadequate welfare facilities.
i. Dispute on sharing the gains of productivity.
j. Retrenchment, dismissal and lockouts by the management.
k. Strikes by the workers.
l. Inter-union rivals.
m. General economic and political environment such as rising prices, strikes by others
and general indiscipline having their effect on the employees attitudes.
n. Mental inertia on the part of the management.
DEVELOPING SOUND IR
a. Developing trust between Labor & Management
b. Maintenance of Industrial Peace
c. Continuous feedback & monitoring
d. Professional approach
e. Existence of sound, democratic TU
CODE OF DISCIPLINE
a. It specifies various obligations for the management and the workers with the
objective of promoting cooperation between their representatives.
b. To maintain harmonious relations and promote industrial peace, a Code of
Discipline has been laid down which applies to both public and private sector
enterprises
OBJECTIVES OF CODE OF DISCIPLINE
a. Maintain peace and order in industry.
b. Promote constructive criticism at all levels of management and employment.
c. Avoid work stoppage in industry.
d. Secure the settlement of disputes and grievances by a mutually agreed
procedure.
e. Avoiding litigation.
f. Facilitate a free growth of trade unions.
g. Eliminate all forms of coercion, intimidation and violations of rules and
regulations governing industrial relations.
PRINCIPALS OF CODE OF DISCIPLINE
a. There should be no strike or lockout without prior notice.
b. No unilateral action should be taken in connection with any industrial matter.
c. Employees should not follow go slow tactic.
d. No deliberate damage should be caused to a plant or property
e. Acts of violations, intimidation and coercion should not be resorted
f. The existing machinery for the settlement of disputes should be utilized.
g. Actions that disturb cordial relationships should be avoided.
h. Approaches to IR
There are mainly three approaches to IR
a. Unitary approach
b. Pluralistic Approach
c. Marxist Approach
APPROACHES TO IR
Unitary Approach
a. IR is grounded in mutual co-operation, individual treatment, team work and
shared goals.
b. Union co-operate with the mgt. & the mgt.’s right to manage is accepted
because there is no ‘ we they feeling’
c. Assumption: Common interest & promotion of harmony No strikes are there.
d. It’s a reactive IR strategy.
e. They seek direct negotiations with employees.
Pluralistic Approach
It perceives:
a. Org. as a coalitions of competing interest.
b. TU as legitimate representatives of employee interests.
c. Stability in IR as the product of concessions and compromises between mgt. &
unions.
d. Conflict between Mgt. and workers is understood as inevitable.
e. Conflict is viewed as conducive for innovation and growth.
f. Strong union is necessary.
Marxist Approach
a. Regard conflict as Pluralists…
b. Marxists see conflict as a product of the capitalist society.
c. Conflict arises due to the division in the society between those who own
resources and those who have only labor to offer.
d. For Marxist all strikes are political.
e. He regard state intervention via legislation & the creation of Industrial tribunals
as supporting mgt’s interest rather than ensuring a balance between the
competing groups.
UNIT II
Objectives Of Trade Unions
Trade unions are formed to protect and promote the interests of their members. Their primary
function is to protect the interests of workers against discrimination and unfair labor practices.
Trade unions are formed to achieve the following objectives:
· Representation
Trade unions represent individual workers when they have a problem at work. If an employee
feels he is being unfairly treated, he can ask the union representative to help sort out the
difficulty with the manager or employer. Unions also offer their members legal representation.
Normally this is to help people get financial compensation for work-related injuries or to assist
people who have to take their employer to court.
Negotiation
Negotiation is where union representatives, discuss with management, the issues which affect
people working in an organization. There may be a difference of opinion between management
and union members. Trade unions negotiate with the employers to find out a solution to these
differences. Pay, working hours, holidays and changes to working practices are the sorts of
issues that are negotiated. In many workplaces there is a formal agreement between the union
and the company which states that the union has the right to negotiate with the employer. In
these organizations, unions are said to be recognized for collective bargaining purposes.
Voice in decisions affecting workers
The economic security of employees is determined not only by the level of wages and duration
of their employment, but also by the management’s personal policies which include selection
of employees for lay offs, retrenchment, promotion and transfer. These policies directly affect
workers. The evaluation criteria for such decisions may not be fair. So, the intervention of
unions in such decision making is a way through which workers can have their say in the
decision making to safeguard their interests.
Member services
During the last few years, trade unions have increased the range of services they offer their
members. These include:
o Education and training - Most unions run training courses for their members on employment
rights, health and safety and other issues. Some unions also help members who have left school
with little education by offering courses on basic skills and courses leading to professional
qualifications.
o Legal assistance - As well as offering legal advice on employment issues, some unions give
help with personal matters, like housing, wills and debt.
o Financial discounts - People can get discounts on mortgages, insurance and loans from
unions.
o Welfare benefits - One of the earliest functions of trade unions was to look after members
who hit hard times. Some of the older unions offer financial help to their members when they
are sick or unemployed.
Functions Of Trade Unions
Trade unions perform a number of functions in order to achieve the objectives. These functions
can be broadly classified into three categories:
(i) Militant functions,
(ii) Fraternal functions
Militant Functions
One set of activities performed by trade unions leads to the betterment of the position of their
members in relation to their employment. The aim of such activities is to ensure adequate
wages, secure better conditions of work and employment, get better treatment from employers,
etc. When the unions fail to accomplish these aims by the method of collective bargaining and
negotiations, they adopt an approach and put up a fight with the management in the form of go-
slow tactics, strike, boycott, gherao, etc. Hence, these functions of the trade unions are known
as militant or fighting functions. Thus, the militant functions of trade unions can be summed up
as:
To achieve higher wages and better working conditions
To raise the status of workers as a part of industry
To protect labors against victimization and injustice
Fraternal Functions
Another set of activities performed by trade unions aims at rendering help to its members in
times of need, and improving their efficiency. Trade unions try to foster a spirit of cooperation
and promote friendly industrial relations and diffuse education and culture among their
members. They take up welfare measures for improving the morale of workers and generate
self confidence among them. They also arrange for legal assistance to its members, if
necessary. Besides, these, they undertake many welfare measures for their members, e.g.,
school for the education of children, library, reading-rooms, in-door and out-door games, and
other recreational facilities. Some trade unions even undertake publication of some magazine
or journal. These activities, which may be called fraternal functions, depend on the availability
of funds, which the unions raise by subscription from members and donations from outsiders,
and also on their competent and enlightened leadership. Thus, the fraternal functions of trade
unions can be summed up as:
To take up welfare measures for improving the morale of workers
To generate self confidence among workers
To encourage sincerity and discipline among workers
* A member can contribute voluntarily more than statutorily prescribed rate (upto
100% of basic salary) which will be transferred to his PF A/c
Calculation
* 12% contribution by the employee is directly transferred to his Provident Fund A/c
* 12% is contributed by the employer out of which 8.33% is credited to Employee
Pension Fund and the balance 3.67% is transferred to PF A/c of the employee
* 1.10% Administration charges on total wages are payable by the employer
* 0.50% EDLI calculated on total EDLI slab (Rs. 6500) wages and payable by the
employer towards EDLI fund
* 0.01% EDLI Administration charges calculated on total EDLI slab wages are payable
by the employer
Benefits
* Employees can take advances / withdraw the PF in case of retirement, medical care,
housing, family obligation, education of children & financing of life Insurance Polices
* Upto 90% of the PF amount can be withdrawn at the age of 54 years or before one
year of actual retirement
* PF amount of the deceased member is payable to nominees / legal heirs
* Immediate income tax exemption under Sec 80C of IT Act
* Equal contribution by the employer
* Interest rate is usually higher than the prevailing market rate (present interest rate @
8.5%)
* PF A/c can be transferred if any member changes from one establishment to other
where the PF Scheme is applicable
* Totally tax free returns
Interest
* Interest is credited to the members PF A/c on monthly running balance
* Interest rate is fixed by the Central Government in consultation with the Central
Board of trustees of EEPF every year during March / April
* The present rate of interest is 8.5%
Nomination
* The member can nominate other person / persons to receive the Fund amount in the
event of his death
* The nomination details provided by the members are maintained at the Regional
Provident Fund Office for use in the event of death of the member
Annual Statement of Account
* After the close of each year of contribution, annual statement of account will be sent
to each member through establishment where the member was last employed
* The annual statement of fund account will show the opening balance at the beginning
of the year, contributions during the year, the amount of interest credited at the end of
the period and the closing balance at the end of the year
* If any error is noticed in the annual statement, the member shall bring the same to the
notice of the PF Office through employer within 6 months from the date of receipt of
the statement
Full Settlement
* PF A/c settled immediately under the circumstances;
* Retirement after 58 years
* Retirement on account of permanent incapacity
* Termination of service on retrenchment
* Voluntary Retirement Scheme (VRS)
* Permanent migration from India to settle abroad / taking employment
* For female members leaving service for getting married
* PF A/c settled after two months under the circumstances;
* Resignation from the services
Advances / Withdrawals
* Purchase of site for construction of house / construction of House / purchase of flat
* Additions / alterations / improvements to the house
* Repayment of loan
* Hospitalisation for more than a month / major surgical operation / suffering from
TB, Leprosy, Paralysis, Cancer, Heart ailment etc
* Marriage of self / son / daughter / sister / brother
* Education of son / daughter
* Abnormal conditions like natural calamities
* Physically handicapped member for purchasing an equipment to minimize the
hardship due to handicap
Employer Role & Responsibility
Monthly Returns
* Filing monthly PF returns with the EPFO within 15 days of the close of each month
* Provide list of new employees joined in the establishment during the preceding month
& are qualified to become member in fund (Form-5)
* Provide list of employees leaving service during the preceding month (Form-10)
* Employer should file 'Nil' returns if there is no new employee or no employee leaving
the service during the preceding month
* Provide the total no. of members last month, new members joined and existing
members resigned in the preceding month & total no. of present subscribers to be
fund (Form-12A)
Annual Returns
* Employer shall send to the Commissioner within one month of the close of the year, a
consolidated Annual Contribution Statement (Form-6A) and individual employee
sheet (Form-3A) showing the contributions made by the employees and employer
during the year
Penalty
* 12–37% interest is payable for the delayed period in remitting contributions/
administrative charges depending upon the delayed period
Exemption
* Employer can seek exemption from the Scheme if similar / better benefits are
provided other than the Scheme by forming a Voluntary PF Trust which will work
under the rules & regulations of EPFO
Employee Role & Responsibility
* Provide details of self & nominees (Form-2) for PF & Pension Scheme at the time of
joining the establishment
* In case of already having PF A/c, apply for transfer of previous A/c to the present A/c
* If willing to increase contribution, inform the same to the employer to deduct the
amount from the salary (Voluntary Provident Fund).
* Voluntary PF can be upto 100% of wages
* Understand that the employer is not liable to pay any contribution on voluntary PF
* Periodically verify the details maintained by the employer
* Don't allow employer to deduct his share of contribution/ administrative charges
payable by him from the wages
* Understand that Employees' Provident Fund Organization does not have any agent /
middlemen
The Employees Pension Scheme 1995
Introduction
* To give long term protection / financial security to employee upon retirement and his
family in case of his pre-mature death, family pension scheme has come into force by
diverting 8.33% contribution made by employer towards PF scheme
Application
* Scheme is compulsory for all the existing members who become members of the
Employees Provident Fund Scheme
Eligible
* Monthly pension to employees on retirement
* Widows on death of the member
* Children of the member below 25 years age
* Monthly pension to members upon permanent total disablement during service
The Employees Deposit-Linked Insurance Scheme 1976 (EDLI)
The Employees Deposit-Linked Insurance Scheme 1976 (EDLI)
Application
* EDLI scheme is compulsory for all the existing members who become members of the
PF Scheme
* Life insurance benefit (death coverage) of the employee is available under this scheme
while in service
Calculation
* EDLI is calculated on EDLI slab – Rs. 6500/-
* 0.50% EDLI calculated on total EDLI slab (Rs. 6500) wages and transferred to EDLI
fund
* 0.01% Administration charges calculated on total EDLI wages
* EDLI / administration charges are payable by the employer
The Employees Deposit-Linked Insurance Scheme 1976 (EDLI)
Eligible
* Person who is eligible to receive PF dues of deceased member who died while in
service is only eligible to receive EDLI fund
Exemption
* Employer can seek exemption from the Scheme if similar / better benefits are
provided other than the Scheme with the consent of majority of employees
(Ex: IJM opted LIC as it is giving death coverage of Rs. 1,60,000/- under EDLI
instead of Rs. 60,000/- given by EPFO)
The Payment of Gratuity Act, 1972
1. It applies to factories, mine, oilfield, plantation, port , railway, Shops and Establishments employing ten or more persons. 2. Applicable to employees who have rendered continuous service for five years. 3. Employees with less than five years will be entitled in case of death or disablement. 4. Employer has to pay within 30 days from the date it becomes payable to the employee. 5. Total amount of gratuity payable shall not exceed Rs.3,50,000/- to 10 Lakhs unless there is a contract to the contrary. 6. Compulsory insurance is necessary towards gratuity from Life Insurance Corporation, unless employer exempted from the Government. 7. Gratuity is calculated at the rate of 15 days wages for every completed year of service or a part thereof exceeding six months. Payment of Gratuity Act, 1972 An Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines,
oilfields, plantations, ports, railway companies, shops or other establishments and for matters
connected therewith or incidental thereto.
Section: 1
Short title, extent, application and commencement.
(1) This Act may be called the Payment of Gratuity Act, 1972.
(2) It extends to the whole of India:
Provided that in so far as it relates to plantations or ports, it shall not extend to the State of Jammu and
Kashmir.
(3) It shall apply to- -
(a) every factory, mine, oilfield, plantation, port and railway company;
(b) every shop or establishment within the meaning of any law for the time being in force in relation to
shops and establishments in a State, in which ten or more persons are employed, or were employed, on
any day of the preceding twelve months;
(c) such other establishments or class of establishments, in which ten or more employees are employed,
or were employed, or, any day of the preceding twelve months, as the Central Government may, by
notification, specify in this behalf.
(3A) A shop or establishment to which this Act has become applicable shall continue to be governed by
this Act notwithstanding that the number of persons employed therein at any time after it has become
so applicable falls below ten.]
(4) It shall come into force on such date as the Central Government may, by notification, appoint.
Section: 2
Definitions.
In this Act, unless the context otherwise requires, -
(a) "appropriate Government"' means, -
(i) in relation to an establishment-
(a) belonging to, or under the control of, the Central Government,
(b) having branches in more than one State,
(c) of a factory belonging to, or under the control of, the Central Government,
(d) of a major port, mine, oilfield or railway company, the Central Government,
(ii) in any other case, the State Government;
(b) "completed year of service" means continuous service for one year;
[2] [(c) "continuous service" means continuous service as defined in section 2A;]
(d) "controlling authority" means an authority appointed by the appropriate Government under
section 3 ;
(e) "employee" means any person (other than an apprentice) employed on wages, [3] [***] in any
establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled,
semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such
employment are express or implied, [4] [and whether or not such person is employed in a
managerial or administrative capacity, but does not include any such person who holds a post under
the Central Government or a State Government and is governed by any other Act or by any rules
providing for payment of gratuity].
(f) "employer" means, in relation to any establishment, factory, mine, oilfield, plantation, port,
railway company or shop
(h) "retirement" means termination of the service of an employee otherwise than on
superannuation;
(i)"superannuation", in relation to an employee, means the attainment by the employee of such age
as is fixed in the contract or conditions of service at the age on the attainment of which the
employee shall vacate the employment;]
(j) "wages" means all emoluments which are earned by an employee while on duty or on leave in
accordance with the terms and conditions of his employment and which arc paid or arc payable to
him in cash and includes dearness allowance but does not include any bonus, commission, house
rent allowance, overtime wages and any other allowance.
Section: 3
Controlling authority
The appropriate Government may, by notification, appoint any officer to be a controlling authority,
who shall be responsible for the administration of this Act and different controlling authorities may
be appointed for different areas.
Section: 4
Payment of gratuity.
(1) Gratuity shall be payable to an employee on the termination of his employment after he has
rendered continuous service for not less than five years, -
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease:
Provided that the completion of continuous service of five years shall not be necessary where the
termination of the employment of any employee is due to death or disablement:
Provided that in the case of a piece-rated employee, daily wages shall be computed on the average
of the total wages received by him for a period of three months immediately preceding the
termination of his employment, and, for this purpose, the wages paid for any overtime work shall
not be taken into account.:
Provided further that in the case of death of the employee, gratuity payable to him shall be paid to
his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs
is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest
the same for the benefit of such minor in such bank or other financial institution, as may be
prescribed, until such minor attains majority.]
Provided further that in the case of [an employee who is employed in a seasonal establishment and
who is riot so employed throughout the year], the employer shall pay the gratuity at the rate of
seven days wages for each season.
Section: 6
Nomination.
(1) Each employee, who has completed one year of service, shall make, within such time, in such
form and in such manner, as may be prescribed, nomination for the Purpose of' the second
provision to sub-section (1) of section 4.
(2) An employee may, in his nomination, distribute the amount of gratuity payable to him under
this Act amongst more than one nominee.
(3) If an employee has a family at the time of' making a nomination, the nomination shall be
made in favour of one or more members of his family, and any nomination made by such
employee in favour of a person who is not a member of his family, shall be void.
(7) Every nomination, fresh nomination or alteration of nomination, as the case may be, shall be
sent by the employee to his employer, who shall keep the same in his safe custody.
How much?
Section: 7
AMOUNT OF GRATUITY
For every completed year of service or part thereof in excess of 6 months, the employer has to pay
gratuity to an employee@ 15 days’ wages based on the rate of wages drawn by the concerned
employee. In the case of piece-rated employee, daily wages are computed on the average of the
total wages received by him for a period of 3 months immediately preceding the termination of his
employment.
The amount of gratuity payable to an employee is not to exceed Rs 3,50,000.
Inspectors
Section: 7A
Inspectors
(1) The appropriate Government may, by notification, appoint as many Inspectors, as it deems fit,
for the purposes of this Act.
(2) The appropriate Government may, by general or special order, define the area to which the
authority of an Inspector so appointed shall extend and where two or more Inspectors are
appointed for the same area, also provide, by such order, for the distribution or allocation of work
to be performed by them under this Act.
Powers
Section: 7B
Powers of Inspectors.
(1) Has to exercise all or any of the following powers, namely:-
(a) require an employer to furnish such information as he may consider necessary
Enter and inspect at reasonable hours for the purpose of examining any register, record or notice or
other document required to be kept or exhibited under this Act.
(c) examine with respect to any matter relevant to any of the purposes aforesaid, the employer or
any person whom he finds in such premises or place and who, he has reasonable cause to believe, is
an employee employed therein;
(d) make copies of, or take extracts from, any register, record, notice or other document, as he may
consider relevant, and where he has reason to believe that any offence under this Act has been
committed by an employer, search and seize with such assistance as he may think fit, such register,
record, notice or other document as he may consider relevant in respect of that offence;
Recovery
Section: 8
Recovery of gratuity.
If the amount of gratuity payable under this Act is not paid by the employer, within the prescribed
time, to the person entitled thereto, the controlling authority shall, on an application made to it in
this behalf by the aggrieved person, issue a certificate for that amount to the Collector, who shall
recover the same, together with compound interest thereon at such rate as the Central Government
may, by notification, specify,] from the date of expiry of the prescribed time, as arrears of land
revenue and pay the same to the person entitled thereto :
Provided that the controlling authority shall, before issuing a certificate under this section, give the
employer a reasonable opportunity of showing cause against the issue of such certificate:
Provided further that the amount of interest payable under this section shall, in no case exceed the
amount of gratuity payable under this Act
Offences
Section: 9
Penalties.
(1) Whoever, for the purpose of avoiding any payment to be made by himself under this Act or of
enabling any other person to avoid such payment, knowingly makes or causes to be made any false
statement or false representation shall be punishable with imprisonment for a term which may
extend to six months, or with fine which may extend to ten thousand rupees or with both.
(2) An employer who contravenes, or makes default in complying with, any of the provisions of this
Act or any rule or order made there under shall be punishable with imprisonment for a term which
shall not be less than three months but which may extend to one year, or with fine which shall not
be less than ten thousand rupees but which may extend to twenty thousand rupees, or with both: