Page 320 - DMGT106_MANAGING_HUMAN_ELEMENTS_AT_WORK

Managing Human Element at Work

Notes • This Act provides social security to the employees of a company by providing them
compensation against various risks.
• A company is liable to pay the compensation only if the accident or the injury to the
employee has been caused during the course of employment.

• This Act also provides overtime pay and the value of concessions or benefits in the
form of food, clothing, and accommodation.
• The amount of compensation that a company needs to pay to an employee depends
upon the type of injury or disablement suffered by the employee.
• The minimum amount of compensation that must be paid to an employee on the
occurrence of permanent disablement or death is ` 60,000 and ` 50,000 respectively.
However, the maximum amount of compensation that must be paid to an employee
on the occurrence of permanent disablement or death is ` 2.28 lakh and ` 2.74 lakh
respectively.
This act is applicable to all the employees that work in railways, factories, mines and other
companies. It also applies to all the companies that are involved in an industry specified in
Schedule 11 of the Act.

The Maternity Benefit Act, 1961
The Maternity Benefit Act came into being in 1961. This is a compensation given against the
loss of salary to a woman who discontinues to work during the period of pregnancy.
Following are the main objectives of this Act:

• Enable the female employee of a company to discontinue her services during the 6
weeks before her expected confinement date.

• Allow the female employee to discontinue her services after 6 weeks of confinement.
• Provide free medical treatment to a female employee during her pregnancy.
• Provide an expecting female employee the facility of public funds along with cash
benefit so that she can take good care of herself and her child.
• Disallow the dismissal of a female employee during her pregnancy period.

Allow the female employee to feed her baby twice a day during the working hours.

The Industrial Disputes Act, 1947
The Industrial Disputes Act was passed in 1947. This Act is related to the termination and
retrenchment of the employees by a company. This act includes Sections 25-A to 25-S related
to employee termination. Amongst these sections, section 25-C to 25-E are not applicable for
the companies that employ less than 50 individuals. Section 25-C states that when any
permanent employee who has worked for more than or equal to one year is being terminated
by the company, the company is liable to provide a compensation equal to the 50 percent
of her/his basic salary. Section 25-C also states that the company is not responsible to give
any compensation to an employee if he or she refuses to accept an alternative job equivalent
to his/her previous job. A company is also not liable to give compensation if he or she does
not reach the workplace at the scheduled time during the normal working hours at least once
a day.
Section 25-F states that a company cannot terminate the services of an employee without
giving a written notice of one month provided the employee has worked for at least one
year with the company. The notice must contain the termination information, such reason
for termination and wages for the period of notice. Similarly, according to Section 25-FF,

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