Page 187 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Entrepreneurship and Small Business Management

Notes ranges between ` 143 to 1120 per day for work in the so-called central sphere. State governments
have their own minimum wage schedules.

Industries (Regulation and Development) Act of 1951

This law declared numerous key manufacturing industries under its so-called First Schedule. It
placed many industries under common central government regulations in addition to whatever
laws state government enact. It also reserved over 600 products that can only be manufactured
in small scale enterprises, thereby regulating who can enter in these businesses, and above all
placing a limit on the number of employees per company for the listed products. The list
included all key technology and industrial products in early 1950s, including products ranging
from certain iron and steel products, fuel derivatives, motors, certain machinery, machine tools,
to ceramics and scientific equipment.

Employees Provident Fund and Miscellaneous Provisions Act of 1952

This Act seeks to ensure the financial security of the employees in an establishment by providing
for a system of compulsory savings. The Act provides for establishments of a contributory
Provident Fund in which employees’ contribution shall be at least equal to the contribution
payable by the employer. Minimum contribution by the employees shall be 10-12% of the
wages. This amount is payable to the employee after retirement and could also be withdrawn
partly for certain specified purposes.

Maternity Benefit Act of 1961

The Maternity Benefit Act regulates the employment of the women and maternity benefits
mandated by law. Any woman employee who worked in any establishment for a period of at
least 80 days during the 12 months immediately preceding the date of her expected delivery, is
entitled to receive maternity benefits under the Act. The employer is required to pay maternity
benefits, medical allowance, maternity leave and nursing breaks.

Payment of Bonus Act of 1965

This Act, applies to an enterprise employing 20 or more persons. The Act requires employer to
pay a bonus to persons on the basis of profits or on the basis of production or productivity. The
Act was modified to require companies to pay a minimum bonus, even if the employer suffers
losses during the accounting year. This minimum is currently 8.33 percent of the salary.

Payment of Gratuity Act of 1972

This law applies to all establishments employing 10 or more workers. Gratuity is payable to the
employee if he or she resigns or retires. The Indian government mandates that this payment be
at the rate of 15 days salary of the employee for each completed year of service subject to a
maximum of 1000000.

Task As an HR Manager, how will you eliminate the tensions between IR and
HRM occur from the unitarist viewpoint of HRM.

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