Statutory Compliance at saint gobain

STATUTORY
&
LABOUR COMPLIANCES
A PROJECT REPORT
Submitted by
SINDHUJA V
REG.NO: 726015631027
in Partial Fulfillment of the Requirements of the Award of the Degree
of
MASTER OF BUSINESS ADMINISTRATION
SRI VENKATESWARA INSTITUTE OF INFORMATION
TECHNOLOGY AND MANAGEMENT,
COIMBATORE-641 112.
ANNA UNIVERSITY: CHENNAI 600 025
JUNE-2017

SRI VENKATESWARA INSTITUTE OF INFORMATION
TECHNOLOGYAND MANAGEMENT
COIMBATORE - 641 112.
Department of Management Studies
Project Work
June 2017
This is to certify that project work done by
SINDHUJA V
REG.NO: 726015631027
of MBA during the year of 2015-2017
-------------------------- -----------------------
Project Supervisor Director
Submitted for the Project Viva-Voce Examination held on _________________.
Internal Examiner External Examiner

ANNA UNIVERSITY : CHENNAI 600 025
BONAFIDE CERTIFICATE
Certified that this Report titled” STATUTORY & LABOUR COMPLIANCES is the
bonafide work of SINDHUJA V, REG.No:723015631027 who carried out the work under
my supervision. Certified further that to the best of my knowledge the work reported herein
does not form part of any other thesis or dissertation on the basis of which a degree or award
was conferred on an earlier occasion on this or any other candidate.
R NANDHINI B.com (CA), MBA
Supervisor
Sri Venkateswara Institute of Information
Technology and Management
Coimbatore 641112

DECLARATION
I affirm that the record titled “STATUTORY & LABOUR COMPLIANCES
being submitted in partial fulfillment for the award of the degree of MASTER OF
BUSINESS ADMINISTRATION is original work carried out by me. It has not formed the
part of any other project work submitted for the award of any degree or diploma, either in this
or any other university.
SINDHUJA V
REG.NO: 726015631027
I certify that the declaration made above by the candidate is true
R NANDHINI B.com (CA), MBA
Asst. Professor

ACKNOWLEDGEMENT
First, I Extend my heart-felt gratitude to the chairman Commander K.Velu and
Mrs.Mehala Velu, Secretary of SRI VENKATESWARA GROUP OF INSTITUTIONS for
providing us with all sorts of support in complication of my project.
I thank our Dr. T.K. Murugesan, MBA., MFM., M.Phil., NET., SELT., Ph.D,
Department of Management Studies of SRI VENKATESWARA INSTITUTE OF
INFORMATION TECHNOLGY AND MANAGEMENT, for permitting me to undertake this
project as a part of the curriculum which upgrades my academic worth.
I also extent my sincere thanks to my Guide R Nandhini, Department of Management
Studies, for the support, guidance and timely assistance rendered for the project to have come
out in flying colors.
I also thank my parents, friends and the well wishers. I also thank the external guide
K. Manikandan HR of Saint Gobain Glass India Limited-Glass Business.
I thank the almighty for giving me the strength and power to finish this project
successfully.
Sindhuja.V

TABLE OF CONTENTS
Chapter No. Title Page No.
ABSTRACT iv
LIST OF TABLE v
LIST OF FIGURES vi
I
INTRODUCTION
1.1 Introduction to the study
1.2 Need for the study
1.3 Objectives of the study
1.4 Scope of the study
1.5 Limitations of the study
II
INDUSTRY AND COMPANY PROFILE
2.1 Industry profile
2.2 Company profile
2.3 Theoretical framework
2.4 Review of literature
III
RESEARCH METHODOLOGY
3.1 Research Design
3.2 Sampling Design
3.3 Sample size
3.4 Data collection method
3.5 Hypothesis for the study(applicable for marketing &
HR projects)
3.6 Statistical tools employed
IV ANALYSIS AND INTERPERTATION
V
FINDINGS, SUGGESTIONS AND CONCLUSION
5.1 Findings
5.2 Suggestion
5.3 Conclusion
BIBLIOGRAPHY
ANNEXURE

ABSTRACT
A study on statutory and labour compliance has done to find out gap/ deficiencies, if any,
in compliance with the provision of the applicable acts and rules and understand the constraints
and suggest ways to overcome. Also, a survey has been done among contract labours at
Hindustan Unilever Limited, to ascertain factors mostly affecting their motivation, satisfaction
with the employer, efficiency & work hour productivity. The aim of the project is to cross check
whether the contract labours are facing same problems in the company. Descriptive research is
used for this purpose. The whole picture of labour (regulation & abolition) act 1970 is totally
different where the organizations try to implement this act but due to carelessness of contractors
and uneducated labour workers they are not able to use this act fully. One rule has been issued by
the Government that now banks will give the payment to the labour workers it means that
contractors has to submit their cheques in the bank for the payments of the labour workers or
open a different account for the labour worker from which they can take their payment on time
positively but in Saint Gobain, some of the contractors are paid the wages to labour workers in
cash payment.

LIST OF TABLES
S.NO TABLE NAME PAGE NO
1 List of forms related to Labours law
19
2 Statutory registers of labour law in Saint Gobain
36
3 List of applicable labour law(Act) in Saint Gobain 37
4 Labour compliance 50
5 Statutory Audit 53
LIST OF FIGURES
S.NO FIGURE NAME PAGE NO
1 Organizational chart 19
2 Age 38
3 Gender 38
4 Designation 39
5 Awareness about safety, rules & regulation of the company 39
6 Rights 40
7 Contract job 40
8 Satisfaction level of job performance 41
9 Satisfaction level of earnings 41
10 Payment for NF holidays 42

11 48 hours in a week 43
12 Satisfaction level of working environment 43
13 Aware of hazards 44
14 Training for handling emergency 44
15 Safety equipment 45
16 PF & ESI 45
17 Satisfaction level of welfare facilities 46
18 Satisfaction level of grievance handling system 47
19 Handling of workers problem 48
20 Statutory registers & records 48

Labour law (also known as labor law or employment law) mediates the relationship
between workers, employing entities, trade unions and the government. Collective labour law
relates to the tripartite relationship between employee, employer and union. Individual labour
law concerns employees' rights at work and through the contract for work.
Employment standards are social norms (in some cases also technical standards) for the
minimum socially acceptable conditions under which employees or contractors are allowed to
work. Government agencies (such as the former US Employment Standards Administration)
enforce labour law (legislative, regulatory, or judicial).
Labour law (also known as employment or labor law) is the body of laws, administrative
rulings, and precedents which address the legal rights of, and restrictions on, working people and
their organizations. As such, it mediates many aspects of the relationship between trade unions,
employers and employees.
In Canada, employment laws related to unionised workplaces are differentiated from
those relating to particular individuals. In most countries however, no such distinction is made.
However, there are two broad categories of labour law.
First, collective labour law relates to the tripartite relationship between employee,
employer and union.
Second, individual labour law concerns employees' rights at work and through the
contract for work. The labour movement has been instrumental in the enacting of laws protecting
labour rights in the 19th and 20th centuries. Labour rights have been integral to the social and
economic development since the industrial revolution.
1.2 NEED FOR THE STUDY

The study is to done to fill the gaps in statutory records of contract labours and to know
how the contract labours are satisfied with working conditions, salary, welfare facilities.
1.3 OBJECTIVE OF THE PROJECT
PRIMARY OBJECTIVE:
The main objective of the project is to go in detail about statutory compliances and analyze
the implementation of contract labour act in Saint Gobain.
SECONDARY OBJECTIVE:
 To attain a clear understanding of the applicable law.
 To find the gaps in contract labour act and their records followed in HUL.
 To analyze the level of satisfaction of contract labours regarding the physical working
conditions in HUL.
 To analyze the satisfactory level of welfare and safety measures provided by the company
to contract labours
1.4 SCOPE OF THE STUDY
The particular study aims to fill the gaps in statutory records. It proposes to investigate the
effectiveness of the contract labour act implemented by HUL and its impact on the living and
working conditions of contract labours.
1.5 LIMITATIONS OF THE STUDY
 There is some unskilled labour appointed in contract labour.
 The contractors are not properly maintaining the records and registers.
 Contractors should fulfill need and aspiration of labour.

CHAPTER-II
2.1 Industrial Profile

The Businesses of Saint-Gobain Group in India are housed in two large entities,
Grindwell Norton Limited (GNO), a publicly traded company and Saint-Gobain India Pvt. Ltd.
(SGI) and a few smaller entities:
GNO, a company listed on the
Bombay and National Stock
Exchanges, pioneered the manufacture
of grinding wheels in India in 1941.
Saint-Gobain currently holds 51.66%
of the equity capital of GNO. Today,
GNO’s businesses include: Abrasives,
Silicon Carbide, High Performance
Refractories, Performance Plastics and
ADFORS. The Delegation (Country
Head) office, the Project Engineering
Group and SG INDEC (the captive
India IT Development Centre for the
Saint-Gobain Group globally) are also
part of GNO.
GNO’s subsidiary, Saint-Gobain Ceramic Materials Bhutan Pvt. Ltd., manufactures
Silicon Carbide. GNO holds 70% of the equity of the company.
Saint-Gobain India Pvt. Ltd. houses the following businesses: Crystals, Glass and Glass
Solutions, Gyproc, SEFPRO, Sekurit and Weber.
Saint-Gobain Research India Pvt. Ltd. houses the Group’s transversal R & D Centre (one
of eight such centres spread around the world).
Saint-Gobain Sekurit India Ltd., a company listed on the Bombay Stock Exchange, is in
the automotive glass business and manufactures glazings primarily for commercial vehicles and
3-wheeler OEMs and for the replacement market. Saint-Gobain holds 75% of the equity capital
of the company.
CONSTRUCTION PRODUCTS
Find our major brands here and discover how our geographical footprint has made us
worldwide leaders in solutions for the interior and the exterior of buildings. Our unique portfolio
of products and services caters to various construction needs from partitions to acoustic and
thermal insulation products, roofing materials and entire pipe systems. We are also methodically
assisting a number of countries to lessen energy consumption and protect the earth.
CertainTeed is a business unit which offers world-class exterior building products. Since
2004, we have promoted innovative roofing and wall-cladding product applications in India. The

unit’s portfolio stretches from individual houses, resorts and educational institutions to
government buildings and mega townships across the country.
The Gyproc business is a part of the
global Gypsum activity and manufactures
an extensive range of gypsum
plasterboards, gypsum plasters, acoustic
ceiling tiles for false ceilings, dry wall
partitions and wall lining systems. The
business manufactures plasterboard and
plasters at its plants located in
Maharashtra, Karnataka and Haryana.
The Weber business is a part of
the Industrial Mortars activity of Saint-
Gobain and manufactures products and
solutions for tile and stone fixing, joint
fillers (or grouts), epoxies, masonry
mortar, water-proofing chemicals, sealers,
impregnators and admixtures. Weber’s
plant is located in Maharashtra.
PRODUCTS
The Innovative
Materials Sector comprises of
Flat Glass and High-
Performance Materials.
Innovation is the prime focus
of the sector’s marketing
teams, application engineers
and R&D Centres located in
Europe, USA, China and India.
The Innovative Materials
Sector places emphasis on
deploying operational
excellence programmes to
support its commitment to
quality and service.
Flat Glass
The Glass and Glass
Solutions business in India
manufactures and markets
clear, tinted and solar control

glass, fire resistant glass and other types of glasses from its plants located in Tamil Nadu, Gujarat
and Rajasthan.
The Sekurit business in India manufactures and markets automotive glazing and
modular components for the vehicle manufacturing segment and the replacement market from its
plants located in Maharashtra and Tamil Nadu.
High Performance Materials
Abrasives
The Abrasives business in India,
markets and manufactures a full range of
Bonded Abrasives, Coated Abrasives
(including Non-woven Abrasives), Thin
Wheels and Super Abrasives at its plants
near Mumbai, Bangalore, Nagpur and
Himachal Pradesh.
Ceramic Materials Businesses
The High Performance
Refractories (HPR) business offers
complete solutions with expertise in
design, engineering and manufacturing
refractory systems for high temperature
ballistic and wear applications. HPR plants
are located in Bangalore and Halol
(Gujarat).
The Silicon Carbide business
manufactures Silicon Carbide crude and
grains at Tirupati (Andhra Pradesh) and
near Phuentsholing (Bhutan) and is a
major supplier to all leading Refractory,
Metallurgy and Abrasives manufacturers in
India.
SEPR Refractories is a pioneer in manufacturing of Fused Cast and Sintered
Refractories for Glass Furnaces and is currently the largest producer of refractories exclusively
for various types of glass melting furnaces. The business has plants in Kerala (Palakkad) and in
Tamil Nadu (Perundurai).
Adfors is the world leader in glass fibre technical fabrics for applications in construction
and industry. Its products include glass fibre mesh for exterior wall insulation, wall coverings,
joint tapes, glass mats for thermal insulation and the production of asphalt concrete overlays, as
well as insect screens and paving reinforcement grids. The business has a manufacturing facility
in Bangalore.

Crystals & Detectors Business
Crystals & Detectors Business addresses applications in the field of nuclear medicine,
industrial gauging, physics research, oil well drilling, nuclear installation safety, public security
(baggage and freight scanners) and defense. With the support of its parent company and
continuously evolving technology, SGCD is committed to deliver high quality solutions, which
match the exact specifications and application requirements of its customers. The business has a
manufacturing facility in Bangalore.
Performance Plastics Business
The Performance Plastics business creates products with high-performance properties
(temperatures, chemicals, friction, optical and weather/wear resistance) used to produce energy
and reduce consumption, provide protection, improve comfort and sustain the environment. It
produces and markets products through three businesses: Engineered Components, Fluid
Systems and Composites. The business has a manufacturing facility in Bangalore.
World Class Manufacturing

2.1 CORPORATE SOCIAL RESPONSIBILITY
Within the global framework of Corporate Social Responsibility (CSR), the Saint-Gobain
Group in India focuses on a few, specific priority actions under each of the five broad areas. In
addition, as an important element of its Corporate Social Responsibility, the Group in India lays
great emphasis in ensuring that its business practices meet the highest standards of corporate
governance and ethics.
Inventing and Promoting Sustainable Buildings

The habitat and
construction industry, Saint-
Gobain’s main market at a global
level and in India, is shaped by
major sustainable development
challenges. The need for healthy,
comfortable and energy-efficient
residential and commercial
buildings remains considerable. To
keep up with rapid urbanization in
fast-growing markets (such as
India) and aging constructions in
mature markets, the industry will
have to build more, build better
and renovate the buildings people live in today. In India, affordability, high humidity, noise and
dust pose a different set of challenges. In the face of global warming and dwindling natural
resources, new models will be required to preserve the planet. No significant progress will ever
be made in improving energy efficiency and reducing greenhouse gas emissions without massive
action in the habitat and construction industry, which alone accounts for some 40% of energy
consumption and 38% of greenhouse gas emissions in industrialized nations.
To meet the challenges of sustainable development, Saint-Gobain is imagining the habitat
solutions of the future. Buildings hold considerable potential to improve comfort, well-being and
quality of life for men and women around the world. It is possible to make progress while
reducing the world’s energy dependency and limiting environmental impacts. As places where
people live, work and spend time, the main purpose of homes, offices, hospitals, schools, leisure
facilities and other buildings is to serve users and to meet their needs. To drive these changes,
Saint-Gobain is leveraging a unique innovation model in which local innovations receive
corporate support and are shared across the different businesses.
Businesses of Saint-Gobain Group in India which serve the building and construction
industry are working with various stakeholders (Governments, Institutions, Builders/Developers,
Architects, Fabricators, Processors, Multi-craftsman etc.) to promote sustainable buildings. In
addition, Saint-Gobain Research India Ltd. which houses Saint-Gobain’s seventh global
transversal R & D Centre in Chennai, is engaged in work (in collaboration with academic
institutions) on affordable housing and on finding innovative, sustainable solutions for hot and
humid climates as also for noisy and dusty environments.
Limiting Environmental Impacts
At a global level, because Saint-Gobain is involved in both manufacturing and
distribution, it has to take into account the environmental impacts of very different types of sites
(from production facilities to sales outlets and quarries), as well as the transportation of products.

To help sites reduce their environmental
impact, measurement tools and impr ovement
initiatives are defined at the Group level. These
initiatives are designed to combat climate change,
preserve natural resources and/or reduce waste
and atmospheric emissions. More targeted
measures are also defined and implemented by
each individual business to meet its specific
needs.
Climate change
Energy efficiency is a key component in every site’s environmental performance. All sites
in India are making progress in this area by innovating and optimizing existing equipment. This
includes improving combustion processes, making refractories more effective, recovering heat
from furnaces, kilns and driers, using alternate fuels or sources of electricity that are less harmful
to climate change and replacing end of life equipment. All sites in India have begun monitoring
and reporting on CO2 emissions.
Natural resources
Sustainable water use is one of Saint-Gobain’s priorities. A Group-wide sustainable water
management policy has been implemented. In India, all sites have taken steps to reduce the
amount of withdrawals and discharges, most sites have undertaken rain water harvesting
projects, have invested in ETPs and STPs and recycle and reuse a significant part of their water
consumption. All sites also nurture a green environment and plant several trees each year. Even
when implementing green-field projects in India, to the extent possible, existing trees and shrubs
are protected and new ones planted.
Atmospheric emissions
Globally, reducing atmospheric emissions of sulfur dioxide (SO2) and nitrogen oxides
(NOx) from the production of glass, cast iron and other products has been a priority for many
years. In India, all sites not only comply with local requirements, but also follow the Group’s
global standards.
Waste reduction and disposal
Waste reduction is a priority and an opportunity in India. All sites have ongoing projects
aimed at reducing the generation of waste and increasing the recycling of waste. All waste that is
not recycled is carefully stored until its ultimate disposal. Disposal is either by sale to an
authorized scrap dealer or recycler or in a Government-authorized landfill.
Encourage Employees’ Professional Growth
The aim of the Group’s human resources policy is to provide each employee with a

working environment that is safe and hygienic and that fosters personal and professional
fulfillment and growth, as these are fundamental aspects of well-being and performance in the
workplace.
Health and Safety
The health and safety of its employees and exemplary management are deeply embedded
in Saint-Gobain’s CSR and HR policies. The Group’s Environment, Health and Safety (EHS)
policy, as expressed in a letter of commitment from the Chairman and Chief Executive Officer to
all employees, sets out Saint-Gobain’s objectives and priorities concerning the environment,
industrial hygiene and workplace health and safety. The goals include zero loss-time accidents
and zero occupational illness. Saint-Gobain has drawn up standards and recommendations with
regard to specific EHS concerns. The standards are mandatory and apply to all Group sites, even
if the country or local legislation is less stringent. All sites in India monitor and report accidents
(loss-time and non-loss-time), first aid cases and near misses as also continuously identify and
reduce risks and offer themselves for periodic audits.
The Health and Safety policies apply to everyone (employees, service providers,
participants of onsite social initiatives viz. student int erns, apprentices, employees and visitors at
all of the Group’s sites.
The Group launched a new Health Policy in 2013. Currently, this is being implemented in
India.
Diversity
Globally, diversity is an important HR priority. The Group is keen to extend support to
initiatives for differently-abled people as a part of their CSR agenda. For all of the Group’s
businesses in India increasing diversity (gender, age, regional, economic and cultural
background, people with different abilities etc.) in the workforce is a challenge, an opportunity

and is a major objective.
Supporting Community Development
Generating employment and developing skills
Saint-Gobain is a multiregional organization serving local markets. As such, it invests in
both fast-growing regions and mature countries. These investments contribute to job creation and
local economic development. In certain regions, the Group takes direct measures to improve and
develop skills.
In India, besides creating new direct jobs through investments, the Group creates several
upstream and downstream indirect jobs
Besides, some of
the Group’s businesses
are investing in skill
development. For
example, the Glass
business has
implemented a Learn
while Earn (LWE)
program, in collaboration
with NTTF, Bangalore.
The participants, who are
mostly from areas
surrounding the site and
are often disadvantaged,
receive a diploma in
manufacturing
technology at the end of
the programme. A Vocational Training Centre at a manufacturing site of the Glass Business is
accredited to DGET and imparts training on material handling operations, dispatch operations,
warehouse operations and glass handling. The Glass Business also supports initiatives that
impacts knowledge and skills to enhance customer performance through Glass Academy and
events for architect students who are committed to the future of habitat. The Gypsum Business
is involved in imparting training in dry-lining skills and this has recently been recognized as a
skill under the Government of India’s Skill Development Initiative.
Saint-Gobain India Foundation
In India, the Group has set up the Saint-Gobain India Foundation (SGIF) whose primary
aim is to enable life and livelihood through education of underprivileged children with a focus on
educating the girl child .

SGIF is funded out of the profits of
the Group’s businesses in India. SGIF
partners with NGOs having a proven track
record. In 2015, SGIF, in partnership with
nine NGOs, has contributed to the
education and well-being of 1591
underprivileged children of which about
85% are girls.
Many of the sites in India extend
the Group’s EHS policy to the homes of its
employees and the local communities
through awareness programmes or training.
Also, some of the larger sites (in particular, the Glass sites) are actively involved in a number of
local community development projects and closely work with the Government to enhance
awareness and improve health and hygiene standards. The expertise gained in Saint-Gobain is
also shared through the Industry Forums in the area of skills, sustainability and employability.
Further, as Thought Leader, Saint-Gobain is also active in creating awareness and setting
standards for energy efficiency buildings and testing laboratories. The Glass Business also
demonstrated its commitment to sustainability by attaining “LEED Certification – Gold” for one
of their offices.
Yearly impact:
1665-1789: MANUFACTURE ROYALE
Since the middle of the 17th century, luxury products such as silk textiles, lace and
mirrors were in high demand. In the 1660s, mirrors had become very popular among the upper
classes of society: Italian cabinets, châteaux and ornate side tables and pier-tables were decorated
with this expensive and luxurious product. At the time, however, the French were not known for
mirror technology; instead, the Republic of Venice was known as the world leader in glass
manufacturing, controlling a technical and commercial monopoly of the glass and mirror
business.[citation needed] French minister of finance Jean-Baptiste Colbert wanted France to
become completely self-sufficient in meeting domestic demand for luxury products, thereby
strengthening the national economy.
Colbert established by letters patent the public enterprise Manufacture royale de glaces de
miroirs (French pronunciation: [manyfaktyʁ ʁwajal də ɡlas də miʁwaʁ], Royal Mirror-Glass
Factory) in October 1665. The company was created for a period of twenty years and would be
financed in part by the State. The beneficiary and first director was the French financier Nicolas
du Noyer, receiver of taxes of Orléans, who was granted a monopoly of making glass and mirror-
glass for a period of twenty years. The company had the informal name Compagnie du Noyer.

An Early Saint-Gobain Emblem
To compete with the Italian mirror industry, Colbert commissioned several Venetian
glassworkers he had enticed to Paris to work for the company. The first unblemished mirrors
were produced in 1666. Soon the mirrors created in the Faubourg Saint-Antoine, under the
French company, began to rival those of Venice. The French company was capable of producing
mirrors that were 40 to 45 inches long (1.0 to 1.1 m), which at the time was considered
impressive.
Competition between France and the Venetians became so fierce that Venice considered it
a crime for any glass artisan to leave and practice their trade elsewhere, especially in foreign
territory. Nicolas du Noyer complained in writing that the jealous Venetians were unwilling to
impart the secrets of glassmaking to the French workers, and that the Company was hard-pressed
to pay its expenses. The distractions of Paris proved distracting to the workers, and supplies of
firewood to stoke the furnaces were dearer in the capital than elsewhere. In 1667 the glass-
making was transferred to a small glass furnace already working at Tourlaville, near Cherbourg
in Normandy, and the premises in Faubourg Saint-Antoine were devoted to glass-grinding and
polishing the crude product.
Though the Compagnie du Noyer was reduced at times to importing Venetian glass and
finishing it in France, by September 1672 the royal French manufacturer was on a sufficiently
sound footing for the importation of glass to be forbidden to any of Louis' subjects, under any
conditions. In 1678, the company produced the glass for the Hall of Mirrors at the Palace of
Versailles.
In 1683 the company's financial arrangement with the State was renewed for another two
decades. However, in 1688 the rival Compagnie Thévart was created, also financed in part by the
state. Compagnie Thévart used a new pouring process that allowed it to make plate glass mirrors
measuring at least 60 by 40 inches wide (1.5 by 1.0 m), much bigger than the 40 inches (1.0 m)
which the Compagnie du Noyer could create.
The two companies were in competition for seven years, until 1695, when the economy
slowed down and their technical and commercial rivalry became counterproductive. Under an
order from the French government, the two companies were forced to merge, creating
the Compagnie Plastier.
In 1702 Compagnie Plastier declared bankruptcy. A group of Franco
Swiss Protestant bankers rescued the collapsing company, changing the name to Compagnie

Dagincourt. At the same time, the company was provided royal patents which allowed it to
maintain a legal monopoly in the glass-manufacturing industry up until the French
Revolution (1789), despite fierce, sometimes violent, protests from free enterprise partisans.
1789-1910: INDUSTRIAL REVOLUTION
In 1789, as a consequence of the French Revolution, the state financial and competitive
privileges accorded to Compagnie Dagincourt were abolished. The company now had to depend
on the participation and capital of private investors, although it continued to remain partly under
the control of the French state.
In the 1820s, Saint-Gobain continued to function as it had under the Ancien Régime,
manufacturing high-quality mirrors and glass for the luxury market. However, in 1824, a new
glass manufacturer was established in Commentry, France, and in 1837 several Belgian glass
manufacturers were also founded. While Saint-Gobain continued to dominate the luxury high-
quality mirror and glass markets, its newly created competitors focused their attention on making
medium and low-quality products.
The manufacture of products of such quality made mirrors and glass affordable for the
masses. In response, the company extended its product line to include lower-quality glass and
mirrors.
In 1830, just as Louis-Philippe became King of the newly restored French Monarchy,
Saint-Gobain was transformed into a Public Limited Company and became independent from the
state for the first time.
While mirrors remained their primary business, Saint-Gobain began to diversify their
product line to include glass panes for skylights, roofs and room dividers, thick mirrors, semi-
thick glass for windows, laminated mirrors and glass, and finally embossed mirrors and window
panes. Some of the more famous buildings that Saint-Gobain contributed to during that period
were the Crystal Palace in London, le Jardin des Plantes, les Grand et Petit Palais and les
Halles in Paris, and the Milan railway station.
Saint-Gobain merged with another French glass and mirror manufacturer, Saint-Quirin, in
the mid-19th century. After the merger, the company was able to gain control of 25% of
European glass and mirror production (before, it had only controlled 10–15%). In response to
growing international competition, the company began to open up new manufacturing facilities
in countries without any domestic manufacturers.
Saint-Gobain cast the glass blanks of some of the largest optical reflecting telescopes of
the early 20th century, including the ground-breaking 60-inch (1.5 m) Hale telescope (online in
1908) and 100 inch (2.5 m) Hooker telescope (online 1917) at Mount Wilson
Observatory (USA), and the 72-inch (1.8 m) Plaskett telescope (online in 1918) at Dominion
Astrophysical Observatory (Canada).

1910-1950: POST INDUSTRIAL REVOLUTION
Saint-Gobain experienced significant success in the early 20th century. In 1918 the
company expanded its manufacturing to bottles, jars, tableware and domestic glassware.
In 1920, Saint-Gobain extended its businesses to fiberglass manufacture. Fiberglass was
being used to create insulation, industrial textiles, and building reinforcements. In 1937 the
company founded Isover, a subsidiary fiberglass insulation manufacturer.
During this period, the company developed three new glassmaking techniques and
processes; first, a dipping technique used to coat automobile windows, which prevented glass
from shattering in the event of an accident. As a result of that technique, 10% of Saint-Gobain's
1920 sales came from the automobile industry, and 28% in 1930.
Second, a few years later, another technique was developed that allowed glass to be
shaped and bent.[clarification needed] Finally, a process was developed to coat glass with
aluminum, allowing it to be used as a conductor, and allowed the company to create products
such as radiavers (a glass heater).
1950–1970: PONT-À-MOUSSON MERGER
Between 1950 and 1969, Saint-Gobain's sales rose at a rate of 10% per year. Its work
force grew from 35,000 in 1950 to 100,000 in 1969. By the end of the 1960s, Saint-Gobain had
more than 150 subsidiaries under its control.
Glass and fiberglass sales benefited from the booming construction industry and the rise
in mass consumption after the Second World War. Saint-Gobain's yearly glass production went
from 3.5 million square metres (38 million square feet) in 1950 to 45 million square metres
(480 million square feet) in 1969. In 1950, fiberglass only represented 4% of the company's
turnover, but by 1969, this had grown to 20%.
Domestic sales in France accounted for only a fifth of the company's revenue. Spain,
Germany, Italy, Switzerland and Belgium were also important markets.
In 1968, Boussois-Souchon-Neuvesel (BSN), a French industrial group, made a hostile
takeover bid for Saint-Gobain. The company looked for a "white knight" to help fend off the bid.
Multinational corporation Suez suggested that Saint-Gobain and Pont-à-Mousson (another
French industrial group) should merge, in order to maintain independence from BSN. After the
merger, Saint-Gobain-Pont-à-Mousson, later known simply by the name "Saint-Gobain",
produced pipes in addition to glass and fiberglass.
1971–1986: NATIONALISATION
The next fifteen years were a time of change and reorganization for the newly merged
companies. In the 1970s, Western economies were suffering a sharp downturn. Saint-Gobain's
financial performance was adversely affected by the economic and petrol crisis.
In 1981 and 1982, ten of France's top-performing companies were nationalized by
the socialist Fifth Republic of France. By February 1982, Saint-Gobain was officially controlled
by the state. However, the company did not last long as a government-owned corporation; it was
re-privatized in 1987.

1986–PRESENT: EXPANSION
When Saint-Gobain once again became a private enterprise, control of the company
quickly changed hands. Jean-Louis Beffa, an engineer and graduate of the École Polytechnique,
became the CEO. Beffa invested heavily in research and development and pushed strongly for
the company to produce engineered materials, such as abrasives and ceramics.
Under Beffa, the company continued to expand internationally, setting up foreign
factories, and acquiring many of its foreign competitors. In 1996 the company bought Poliet (the
French building and construction distribution group) and its subsidiaries, such as Point P. and
Lapeyre. This expanded Saint-Gobain's product line into construction materials and their
distribution.
COMPANY STRUCTURE
HEAD OFFICE
The company has its head office in Les Miroirs in La Défense and in Courbevoie. The
97-metre (318 ft) building served as the company head office since 1981.
Saint-Gobain sherry bottle factory at Jerez, Andalusia (Spain)

2.2 COMPANYPROFILE
Saint-Gobain India Private Limited.
Saint-Gobain entered India in 1996, and has achieved strong and profitable growth since
then. Today, it is a leader in all its major businesses, has 19 manufacturing sites and about 4,900
employees in India. In 2016, Saint-Gobain registered sales of about Rs.5785 crores. For Saint-
Gobain, India presents a huge opportunity for growth. Two large entities, Grindwell Norton
Limited (GNO), a publicly traded company, and Saint-Gobain India Pvt. Ltd. (SGI) and a few
smaller entities house Saint-Gobain’s businesses in India. The Group has adopted a systematic
focus in launching its individual businesses in India and currently operates in two of Saint-
Gobain’s business sectors: Innovative Materials and Construction Products.
Commitments
Saint-Gobain’s values, forged by 350 years of history, were given written expression as
the General Principles of Conduct and Action in 2003 and have been disseminated across the
Group since then in order to strengthen their application. The Principles are universal and have
global scope and relevance. Adherence to the Principles is a requirement for belonging to the
Saint-Gobain Group.
COMMITTEES
Executive committee
Pierre-André de Chalendar, CEO
Pierre-André de Chalendar (born 1958) is a French businessman. He is Chairman and
CEO of Saint-Gobain Group since 3 June 2010 and CEO since June 2007.
BIOGRAPHY
Early life

Pierre-André de Chalendar was born on 12 April 1958 in Vichy. He graduated
from ESSEC business school in 1979 and the École Nationale d'Administration (ENA) in 1983
(promotion Solidarity).
Career
He began his career at the General Inspection of Finance (IGF) from 1983 to 1987. He
became Financial Inspector in 1984, Project manager from 1987 to 1988 and Deputy Director
from 1988 to 1989 in the General Directorate for Energy and raw materials of the Ministry of
Industry and Energy.
On 1 October 1989 he joined Saint-Gobain as Vice-President Corporate Planning. From
1989 to 1992, he served as its Vice-President for Corporate Planning. He then served as
Corporate Vice President of Saint-Gobain Corp. (USA) and Managing Director of Norton
Abrasives Europe from 1992 to 1996, President of the worldwide Abrasives Division and
Chairman and CEO of Norton SA from 1996 to 2000, General Delegate for the United Kingdom
and Ireland and Chief Executive of Meyer International from 2000 to 2003, and Senior Vice-
President of Compagnie de Saint-Gobain in charge of the Building Distribution Sector from
2003 to 2005. He became Chairman of BPB in 2005. He served as Chief Operating Officer from
2005 to 2007, Director since 2006, and Chief Executive Officer of Saint-Gobain since 2007. He
has been appointed by the Board of Directors of Saint-Gobain as Chairman and CEO since 3
June 2010, after the General Meeting of shareholders.
-He sits on the Board of Directors of Veolia Environnement.
-He is a Knight of the Legion of Honour and National Order of Merit.
Personal life
He married in 1989 Leticia, daughter of Sir Peter Petrie, 5th Baronet. They have four
children.
GENERAL MANAGEMENT COMMITTEE
 Pierre-André de Chalendar, Chairman and Group CEO
 Laurent Guillot, Group CFO
 Paul Neeteson, General Delegate to Germany and Central Europe
 Benoît Bazin, President of the Building Distribution Sector
 Jean-Claude Breffort, President of Human Resources and International Development
 John Crowe, General Delegate to the North America Region
 Emmanuel Normant, General Delegate to the Asia-Pacific Region
 Jérôme Fessard, President of the Packaging Sector
 Bernard Field, Corporate Secretary
 Jean-Pierre Floris, President of the Flat Glass Sector
 Claude Imauven, President of the Construction Product Sector
 Jean-François Phelizon, Advisor to the CEO
 Didier Roux, President of Research and Development.
FINANCIAL DATA

Financial data as of 2008 in millions of euro.
Year 2000 2001 2002 2003 2004 2005 2006 2007
Sales 28,815 30,390 30,274 29,590 32,025 35,110 41,596 43,355
EBITDA 4,194 4,317 4,185 3,800 4,086 3,903 5,431 5,852
Net Results 1,517 1,134 1,040 1,039 1,112 1,294 1,637 1,898
Net Debt 8,217 8,614 7,012 5,657 5,566 12,850 11,599 10,210
Staff 171,125 173,329 172,357 172,811 181,228 199,630 206,839 212,515
BUSINESS SECTORS
Saint-Gobain is organized into three major Sectors (% by 2014 Net Sales restated
excluding Verallia): Building Distribution (49%), Construction Products (27.5%), Innovative
Materials (23.5%).
BUILDING DISTRIBUTION
Saint-Gobain's Building Distribution (building supplies) division was created in 1996.
Since then it has grown both internally and through acquisitions (in France with Point P and
Lapeyre, the UK with Jewson and Graham, in Germany, the Netherlands and Eastern Europe
with Raab Karcher and in the Nordic Countries with Dahl). The division has 4,000 stores in 24
countries and employs 63,000 people worldwide. Its 2006 sales amounted to 17.6 billion euros.
-The divisions current subsidiaries are:
 SGBD UK
 Raab Karcher
 Point P.
 Lapeyre
 Brødrene (Brothers) Dahl
 Norandex Distribution
 Optimera, with the 'Monter' DIY chain
CONSTRUCTION PRODUCTS
The Construction Products division is organized into the following business areas:
 Gypsum, which manufactures drywall
 Insulation, which manufactures acoustic and thermal fiberglass insulation

 Exterior Products, which manufactures roofing, interior and exterior products
 Pipes, which manufactures cast-iron pipes for water transfer applications
 Mortars, which manufactures expanded clay lightweight aggregates.
The Construction Products division employs 45,000 people worldwide and in 2006 had
sales revenues of 10.9 billion euros.
Companies:
 CertainTeed
 Gyproc
 Weber
Principles of Conduct and Action
The General Principles of Conduct and Action are summarized below:
Principles of Conduct
 Professional commitment
 Respect for others
 Integrity
 Loyalty
Principles of Action
 Respect for the law
 Caring for the environment
 Compliance with workplace health and safety guidelines
 Respect for employee rights
Code of Conduct for Employees in India
The Code of Conduct is an elaboration of the Saint-Gobain Principles of Conduct and
Action and sets out what is expected of the Group’s employees in India. The objective of this
Code is to ensure that every employee of the Group in India is aware of acceptable conduct and
behaviour, in consonance with Saint-Gobain’s Principles of Conduct and Action. The Code of
Conduct has the following sections:
 General Standards of Conduct
 Equal Opportunities for All
 Enabling Work Environment
 Conflict of Interest
 Payments, Gifts & Entertainment
 Usage of Group’s/Company’s Assets
 Compliance

 Electronic Resources Usage
 Handling Confidential Information
 Media Policy
 Procurement Practices
 Relations with Customers
 Free and Fair Competition
 Environment, Health and Safety
Whistle Blower Policy For India
The Whistle Blower (WB) Policy provides a secure framework, within which, the
Group’s employees in India can play an important role in upholding the Principles and the Code
of Conduct. The Policy encourages employees of the Group in India to report unethical or
improper practices or acts, in particular, or violations of the Code of Conduct, in general. Under
the Policy, every employee of the Group in India is expected to promptly report to the Whistle
Blower Committees (Delegation/Company) any actual or possible violation of:
The Saint-Gobain Principles of Conduct & Action
The Code of Conduct for Employees
Any unlawful, unethical or improper activity concerning any Saint-Gobain Business in India.
It contains information on:
 Applicability
 Policy
 Definitions
 Roles, Rights and Responsibilities
 Disqualification
 Procedures
 Notification
 Amendment

2.3 THEORETICAL FRAMEWORK
CONTRACT LABOUR MANAGEMENT:
DEFINITIONS:
"Appropriate Government" means-
In relation to any other establishment in respect of which the appropriate government
under the Industrial Disputes Act, 1947(14 of 1947), is the central government.
In relation to any other establishment, the government of the state in which that the other
establishment is situated
A workman shall be deemed to be employed as "Labour Law" in or connection with the
work of an establishment when he is hired in connection with such work by or through a
contractor with or without the knowledge of the principal employer.
"Contractor" in relation to an establishment means a person who undertakes to produce a
given result for the establishment, other than the supply of goods or articles of manufacture to
such establishment, through contract labour or who supplies contract labours for any work of the
establishment and includes a subcontractor.
"Establishment" means-
(i) Any office or department of the government or a local authority, or
(ii) Any place where any industry, trade, business, manufacture or occupation is carried on.
"Principal employer" means-
(i) in relation to any office or department of the government or a local authority, the head of
that office or department or such other officer as the government or the local authority, as the
case may be, may specified in this behalf.
(ii) in a factory, the owner or occupier of the factory and where a person has been named as
the manager of the factory under the Factories Act, 1948.
"Workman" means-
any person employed in or in connection with the work of any establishment to do any skilled,
semi-skilled or unskilled manual, supervisory, technical or clerical work for hired or reward,
whether the terms of employment be express or implied, but does not include any such person,
(i) Who is employed mainly in a managerial or administrative capacity, or
(ii) Who, being employed in a supervisory capacity draws wages exceeding five hundred
rupees per menses or exercises; either by the nature of the duties attached to the office or by
reason of the powers vested in him, functions mainly of managerial nature.
CONTRACT LABOUR(Regulation & Abolition) ACT 1970:
An act to regulate the employment of contract labour in certain establishments and to
provide for the abolition in certain circumstances and for matters connected there with.
This act was passed to prevent the exploitation of contract labour but also introduce better
conditions of work where contract labour is justified.
It is extended to whole of India. It shall come into force on such date as the central
government may by notification in the official gazette, appoint and different dates may be
appointed for different provisions of the act.
It is applied to every establishment in which twenty or more workers are employed or
were employed on any day of the preceding twelve months as contract labour.

THE ADVISORY BOARDS AS PER THE CONTRACT LABOUR ACT, 1970:
 CENTRAL ADVISORY BOARDS:
The central government shall, as soon as may be, constitute a Board to be called the central
advisory contract labour board to advise the central government on such matters arising out of
the administration of this act as may be referred to it and to carry out other functions assigned to
it under this act.
(1) The Central Board shall consist of
(a) A chairman to be appointed by the Central Government
(b) The Chief Labour Commissioner(Central)
(c) Such number of members, not exceeding seventeen but not less than eleven, as the
Central Government may nominate to represent that Government, the Railways, the
Coal industry, the mining industry, the contractors, the workmen and any other
interests which, in the opinion of the Central Government, ought to be represented
on the Central Board.
(2) The number of persons to be appointed as members of each of the categories specified in
sub-section(2), the term of office and other conditions of service of the procedure to be
followed in the discharge of their functions by, and the manner of filling vacancies
among, the members of the Central Board shall be such as may be prescribed.
Provided that the number of members nominated to represent the workmen shall not
be less than the number of members nominated to represent the principal employers and the
contractors.
 STATE ADVISORY BOARD:
The State Government may constitute a Board to be called the State Advisory Contract
Labour Board to advise the State Government on such matters arising out of the administration
of this Act as may be referred to it and to carry out other functions assigned to it under this Act.
(1) The State Board shall consists of-
(a) A Chairman to be appointed by the State Government.
(b) The Labour Commissioner or in his absence any other officer nominated by
the State Government in that behalf.
(c) Such number of members, not exceeding eleven but not less than nine, as the
State Government may nominate to represent the Government, the industry,
the contractors, the workmen and any other interests which, in the opinion of
State Government, ought to be represented on the State Board.
(2) The number of persons to be appointed as members of each of the categories
specified in sub-section(2), the term of office and other conditions of service of, the
procedure to be followed in the discharge of their function by, and the manner of
filling vacancies among, the members of the State Board shall be such as may be
prescribed.
.

CONTRACT LABOUR WORK AT HUL:
The contractors at Saint Gobain are fully responsible for all matters arising out of the
performance of the contract and comply at his own expanses with all the law’s enactment/ orders
/ regulations/ statutory obligations, whatsoever, of the Government of India/ State Government/
any statutory or non-statutory authority. The contractors hereby agree to indemnify and keep
harmless the owner against all liabilities in this respect. The contractor in Saint Gobain are fully
and exclusively responsible for the work, conduct, supervision and control of all their own
personnel and personnel employed by the sub-contractor engaged by them and owner shall in no
way be responsible for supervision, control etc. of these personnel. Since the contractor have full
and exclusive supervision and control over the contract awarded to him and the people engaged
for this purpose, the contractor or his sub-contractor, as the case may be, shall be the principal
employer under the Contract Labour (Regulation & Abolition) Act, 1970 and the contractor of
HUL must register himself as such, and the owner have o responsibility and liability on this.
ADVANTAGES AND DISADVANTAGES:
Advantages of using temporary labours:
 When we use temporary labours we should be getting an employee that has already been
screened and interviewed by the temporary agency. If we work closely with the same
agency they should be able to get a feel for what type of employees we are looking for.
This also saves our time having to go through the normal hiring process.
 If we are not satisfied with the employee well the solution to that is simple. Ask the
contractor to send out someone else. We are not required to use anyone he sends to us.
 There a couple of other advantages to using a temporary labour. One is the ability to let
go the employee when we no longer need them. All we have to do is make a call or give
letter and the contractor will handle the employee.
 The other advantage is the ease with which payroll is handled. That’s because the
contractor handles the employee’s payroll. He deals with all taxes as well as the benefits
the employee might be receiving. All we have to do is pay bill.
 Economic and Financial feasibility- the contractor labours are able to do a better job in
terms of supervision since they have a fear of loss of job compared to regular workers.
 As such the principal employer has no liability towards the contract labours but his
liability is limited to the act of payment of bill raised by the contractor.
 Under sec.16 (1)(c) of contract labour act, if the contract labour appointed by the
contractor is more than 100 then it is the duty of contractor to provide Canteen for the
Labours.
 As the contract labours are appointed by the contractor there will be no chance for labour
unions.
Disadvantages of using temporary labours:
 As per sec. 10 of Contract Labour Act, we cannot appoint them on machine work but
only loading and un-loading work can be given to them.
 However, being the principal employer, we have to ensure that the contract employees are
getting their salary from the contractor in time. It is the responsibility of the principal

employer to ensure that EPF/ESI in respect of these workers is remitted by the contractor
in time. We have also to ensure that bonus is given to those who are eligible for. Besides,
we have to obtain permission from the appropriate authorities for hiring employees
through a contractor.
 Also if the contractor does not complies with the statutory provisions under sec. 21
regarding payment of wages the principal employer have to pay the same.
 The downside of hiring temporary employees- The main problem actually comes from
what happens when we find an employee we’d like to keep. Most temporary agencies
require their workers to sign a contract. Most are either 3 or 6 months in duration. The
contractor keeps the workers from jumping ship if they are offered a job. This gives the
company that is using the employee usually only two choices. One is to buy out the
contract. This can often cost the company thousands of rupees. It’s how the agency is able
to still make its money on the worker. The other opinion is to keep the worker on until the
employee’s contract runs out. Either way our business will pay a price. It’s up to us to
decide whether the employee is worth the price.
 As the employees are appointed by contractor we have no chance to judge their working
ability before appointing them.
REGISTRATION OF THE ESTABLISHMENT:
If the principal employer is employing 20 or more workers than it is necessary
for him to get registered through FORM NO.1 which is the form of Application for
registering of employing contract labour. The principal employer has to make the
registration within a stipulated period of time to the registering officer (Asst.Comm.of
Labour). If the application for the registration is complete in all aspects, the registering
officer shall register the establishment and issue to the principal employer of the
establishment a certificate of registration containing such particulars as may be
prescribed.
List of Forms to be filled up for various purposes related to Contract Labour
S.No Description Form
No
Rule
No
1 Application for registration of employing contract labour i. 17(1)
2 Certificate of registration Ii 18(1)
3 Register of Establishment Iii 18(2)
4 Application for License Iv 21(1)
5 Form of Certificate (By Principal Employer) V 21(2)
6 Govt. of Tamil Nadu (Issue of License) Vi 25
7 Application for Renewal of License Vii 29(2)
8 Application for Temporary Registration of establishment
employing Contract Labour
viii 32(2)

9 Temporary Certificate of Registration Ix 32(3)
10 Application for Temporary License X 32(2)
11 Govt. of T.N.Office of Licensing Officer(Temporary
license)
Xi 32(3)
12 Register of particulars of contractors Xii 74
13 Register of workmen employed by contractors Xiii 75
14 Employment card Xiv 76
15 Service certificate Xv 77
16 Muster Roll Xvi 78(2)(a)
17 Register of Wages Xvii 78(2)(a)
18 Register of Wages cum Muster Roll Xviii 78(2)(a)
19 Wage Slip Xix 78(2)(b)
20 Register of Deductions for Damage ,loss Xx 78(2)(d)
21 Register of Fines Xxi 78(2)(d)
22 Register of Advances Xxii 78(2)(d)
23 Register of Overtime Xxiii 78(2)(e)
24 Return to be sent by the Contractor to Licensing officer
half year ending
Xxiv 82(1)
25 Annual Return of Principal Employer to the Registering
Officer(Annexure to Form)
Xxv 82(2)
DOCUMENTS AND FORMALITIES TO BE MAINTAINED BY THE CONTRACTORS:
LICENSING OF CONTRACTORS:
A license is to be obtained for engaging ten or more labours by a contractor by
depositing fee for license and security deposit. The application of license must
accompany form 5 to be obtained from Saint Gobain. This License is to be renewed. An
application for renewal of the license should be made atleast thirty days before the date
on which the license expires. Application should be made in Form 4. The contractors
shall abide by all the conditions laid down in the license.
Subject to the provision of the Act, a license under sub-section (i) may contain such
conditions including, in particular, conditions as to hours of work, fixation of wages and
other essential amenities in respect of Contract Labours as the appropriate Government
may deem fit to impose in accordance with the rules, if any, made under section 35 and
shall be issued on payment of such fees and on the deposit of such sum, if any, as security
for the due performance of the condition as may be prescribed.
Validity & Renewal:
Every license granted or renewed shall remain in force till 31st December of that
year only. Change in the particulars specified in the license is to be intimated to Licensing
Officer with the particulars and the reasons thereof. On good and sufficient reasons,
License may be amended by Licensing Officer. Contractor has to apply to Licensing

Officer for renewal of license on or before 31st December.
Revocation, suspension & amendment of license:
If the Licensing Officer is satisfied, either on a reference made to him in this behalf
or otherwise, that-
(a) a license granted under section 12 has been obtained by misrepresentation or
suspension or suppression of any material fact,
(b) the holder of license has, without reasonable cause, failed to comply with the
conditions subject to which the license has been granted or has contravened any of the
provisions of this Act or the rules made there under,
Then without prejudice to any other penalty to which the holder of the license an
opportunity of showing cause, revoke or suspend the license or forfeit the sum, if any, or
any proportion thereof deposited as security for the due performance of the conditions
subject to which the license has been granted. Subject to any rules that may be made in
this behalf, the Licensing Officer may vary or amend a license granted under section 12.
Security deposit:
The Contractor has to deposit the security amount as prescribed by the State
Government.
RESPONSIBILITY FOR PAYMENT OF WAGES (The minimum wages act, 1948):
A Contractor shall be responsible for payment of wages to each worker employed
by him as contract labour and such wages shall be paid before the expiry of such period
as may be prescribed.
Every principal employer shall nominate a representative duly authorized by him to
be present at the time of disbursement of wages by the contractor and it shall be the duty
of such representative to certify the amounts paid as wages in such manner as may be
prescribed.
It shall be the duty of the contractor to ensure the disbursement of wages in the
presence of the authorized representative of principal employer.
In case of contractor fails to make payment of wages within the prescribed period or
makes short payment, then the principal employer shall be liable to make payment of
wages in full or unpaid balance due as the case may be, to the contract labour employed
by the contractor and recover the amount so paid from the contractor either by deduction
from any amount payable to contractor under any contract or as a debt payable by the
contractor.
PAYMENT OF MINIMUM RATE OFWAGES:

The Act says that, “where in respect of any scheduled employment minimum
wages have been fixed, the employer shall pay to every employee wages at a rate not less
than the minimum rate of wages fixed for that class of employees in the employment.
Such wages shall be paid without any deductions except as may be authorized. Where the
contract rate is higher, the statutory obligations do not come into play.”
At HUL the wages are paid to the labours as per the Minimum Wages Act, 1948.
The contractor must pay wage rate as fixed and/or revised as per the Minimum Wage Act
1948 in the presence of the authorized representative of the department. He also has to
make the payment of overtime for extra work at double the rate of normal wages. The
wage is paid by cash as well as cheque. The contractor must maintain the wage register
which is to be duly attested by the authorized representative of the department.
The revised minimum wages are,
Category Supervisor Skilled Semi-
skilled
Un-
skilled
Security Asst. security Security
guard
Rate 352.00 338.00 332.85 322.85 502.65 458.42 358.88
Fixing hours for a normal working day: Where minimum wages have been fixed, the
appropriate government may...
(a) Fix the number of hours of work which constitutes a normal working day,
inclusive of one or more specified intervals;
(b) Provide for a day of rest in every period of seven days and for payment of
remuneration in respect of such day of rest;
(c) Provide for payment for work on a day of rest at a rate not less than the overtime
rate.
Rate of Overtime: Where a labour, whose minimum rate of wages is fixed under this act,
by the hour, by the day or by such longer wage period as may be prescribed, works
overtime, the employer shall pay him for every hour or for part of an hour so worked in
excess, wages at the rate fixed for overtime work under the act or under any law of
appropriate government in force, whichever is higher.
Wage period: A wage period to be fixed in respect of which wage shall be payable. This
period shall not exceed one month, wages to be paid directly to the worker or other
person authorized by him in this regard.
Disbursement of Wages: It shall be the duty of the contractor to ensure the disbursement
of wages in the presence of the authorized representative of the principal employer. In
case the contractor fails to make payment of wages within the prescribed period or make
short payments than the principal employer shall be liable to make payment of wages in
full or the unpaid balance due as the case may be, to the contract labour employed by the
contractor and recover the amount so paid from the contractor either by deduction from
any amount payable to the contractor under any contractor or as a debt payable by the
contractor.

Notice showing wage period: A notice should be displayed at the place of work in
English and Tamil and one copy should be sent to tamilnadu Licensing Officer showing
the following:
(a) Rate of wages
(b) Date of payment of wages
(c) Hours of work
(d) Wage period
(e) Name & address of inspecting officer
(f) Date of payment of unpaid wages
(g) Place and time of disbursement of wages.
REGISTER OF PERSONS EMPLOYED: A register in Form XIII is to be maintained in
respect of persons employed by the contractor. As per Rule 75, Form no.13 is to be filled.
EMPLOYMENY CARD: An employment card is to be issued to all the employees in
Form no.XIV as per rule no.76, within three days of employment.
SERVICE CERTIFICATE: A Service certificate in Form-XV is to be issued on
termination of any employee and payment should be made within the second day.
REGISTERS TO BE MAINTAINED:
Registers of contractors: Every principal employer shall maintain in respect of each
registered establishment a register of contractor in Form No. XII
In respect of establishments which are governed by the payment of wages act, 1936 and
the rules made thereunder, the following registers and records required to be maintained by a
contractor as employer under those Acts and the rules made thereunder shall be deemed to be
registers and records to be maintained by the contractor under these rules namely,
S.NO NAME OF THE REGISTER FORM NO RULE NO
1 Register of Employment of Contract Labours XXVI 75
2 Wage Slip XXVII 78(1)(B)
3 Register of advances, deductions & for damage
or loss & fines
XXIX 78(1)(d)
4 Wage Register XVII 78(1)(a)
5 Register of leave with wages XV 87&88
8 Register of Overtime Muster Roll X 78
9 Register of National Festival Holidays VI 7(1)
10 Muster Roll for Maternity Benefit .A 28
11 Register of Bonus C 4(c)
Every principal employer shall, within in fifteen days of the commencement or completion

of each Contract work under each contractor, submit a return to the Inspector, appointed under
section 28 of the act, intimating the actual dates of the commencement or completion of such
contract work, in form VI-b
Every principal employer of a registered establishment shall send annually a return in Form
XXV so as to reach the Registering Officer concerned not later than the 15th February following
the end of the year to which it relates.
INSURANCE:
Risk and uncertainty are incidental to life. A labour may meet an untimely death. He may
suffer from accident, destruction of property, fire, sea perils etc. There is risk as wll as insecurity.
It is to provide against from uncertain events, it only spread the loss over a larger number of
people who insure themselves against that risk.
 Every contractor is liable to have insurance of all the labours under him.
 Employee contribution at 1.75℅
 He must submit the copy of insurance Chelan to Saint Gobain.
 At the time of any accidental death of labour the contractor is liable under the above said
act to pay compensation to the family members/nominee.
 HUL is liable as principal employer under the above said act to keep a watch that all the
compensation is paid to the contract labour.
PROVIDENT FUND:
It is obligatory on the part of the contractor to arrange for deductions towards PF from the
date of joining of an employee. The contribution is 12℅. In view of this, contractor will arrange
for payment of contribution of PF of the employees engaged by him from the wages of his
employees and matching contribution of the contractor from the date of joining of employee.
The contractor shall extend PF benefits to all employees who have completed continuous
service of three months as provided under the Provident Fund Scheme, 1952. The contractor
shall get his concern/ establishment covered under the Employees Provident Fund directly with
appropriate Regional Provident Fund Commissioner.
WORK ORDER COPY:
A copy of work order is given to the contractor after sanctioning the party for the concerned
work based on the lowest bid rate. The work order specifies the terms and conditions of the work
order and mentions the validity period of the contract.
SEAL:
In all the registers, forms, documents, identity cards, leave cards, employment cards and
other records maintained by the contractors under Contract Labour Act (Regulation & Abolition)
Act and other labour laws there must be the seal of Saint Gobain as well as of the contractor
concerned.
OBLIGATIONS OF THE CONTRACTOR:

The contractor undertakes to comply with all the relevant provisions of the various rules
and acts framed thereunder relating to the employment of contract labours by the contractor, such
as:
 The contract labour (regulation & Abolition) Act, 1970 and the central rules framed
thereunder
 The Factories Act, 1948
 The Women's Compensation Act, 1932
 The Employees Provident Fund Act and Misc. Provision Act, 1952
 The Minimum Wages Act, 1947
 The interstate Migrant Workmen (Regulation of Employment& Conditions of Services)
Act, 1979
 The Employer State Insurance Act, 1948
 The Provision of Industrial Dispute Act, 1947
 The Payment of Bonus Act, 1965
 Any other present, future Acts/Rules may be enacted/framed/made applicable by the
Central Government and it applicable to the contract Labour from time to time.
 Any Civil/ Criminal liability arising of non-Compliance of this provisions of any act or
rules as applicable to the contract labour on account of the failure of the contractor
government and is responsible to tie the contract labour on account of the failure of the
failure on contractor will be at s sole risk, responsibility and coat of the contractor.
 Should the management of Saint Gobain suffer any civil/criminal damages/liability or
any other kind of financial liability or cost, the same will be duly
compensated/reimbursed/borne by the contractor.
 The contractor shall give his telephone number and address to Saint Gobain of the place
where he can be contacted in case of labour troubles, any other requirements etc.
 HUL will be entitled to deduct any sum payable by him and which Saint Gobain is
required to pay as Principal Employer because contractor’s default or otherwise, directly
from the bills payable to the contractors in terms of this contract.
 The contractor shall notify the date and time for payment of wages to the authorized
representative of Management of Saint Gobain. He should make payment not less than
the Minimum Wages as modified by the Government.
 The contractor shall make the required registers, records and submit required returns
under the relevant status applicable to him under intimation to Saint Gobain from time to
time.
 No person who is not adult will be employed as contract labour who is not less than 18
years of age.
 The contractor shall communicate about the commencement and completion of the
contract to the Management of Saint Gobain.

 The labours are permitted inside the factory shall be engaged in the specific work under
the contract and should not be employed on other jobs inside the factory without the prior
written specific approval of HUL.
 The contractor’s labours/supervisors must observe the shift timings etc. as prescribed
under the Factories Act, 1948 and rules framed thereunder and intimate the same to HUL
accordingly. For any odd hours, they must take written permission from HUL.
Entire factory area is declared as Non-Smoking area, except where permissible. The contractor
shall ensure to observe this caution carefully.
WELFARE AND HEALTH OF CONTRACT LABOUR:
 CANTEENS:
The appropriate Government may make rules requiring in every establishment-
(a) To which this Act applies,
(b) Wherein work requiring employment of contract labour is likely to continue for such
period as may be prescribed, and
(c) Wherein contract labour numbering 100 or more is ordinarily employed by a
contractor.
One or more canteen shall be provided and maintained by the contractor for the use of
contract labour.
 REST ROOMS:
In every place, wherein contract labour is required to halt at night about the work of an
establishment.
(a) To which this Act applies
(b) Wherein work requiring employment of contract labour is likely to continue for such
period as may be prescribed,
There shall be provided and maintained by the contractor for the use of contract labour such
number of rest-rooms or such other suitable alternative accommodation within such time
as may be prescribed.
The rest-rooms or alternative accommodation to be provided under sub-section (1) shall be
sufficiently lighted and ventilated and shall maintain in clear and comfortable condition.
 OTHER FACILITIES:
It shall be the duty of every contractor employing contract labour in connection with
the work of an establishment to which this act applies to provide and maintain-
(a) A sufficient supply of wholesome drinking water for the contract labour at
convenient places;
(b) A sufficient number of latrines and urinals of the prescribed types so situated as to
be convenient and accessible to the contract labour in the establishment.
(c) Washing facilities.

2.4 REVIEW OF LITERATURE
 Meenakshi Rajeev (2009) did research on “Contract Labour Act in India”. The
findings were that in India for a contract worker it is not only hard to prove his or
her identity as worker under the labour law but employer employee relationship is
also not easily to establish;. It is observed that collusive agreements between
various agents often result in the exploitation of the contract labour. However, to
be able to do this it is necessary to make the workers aware of their rights and
responsibilities so that they are able to detect violation of laws.
 Saini, Debi (2010) did research on “role of the contract worker”. The findings
were that the rights conferred on the contract workers by the Constitution of India
and various labour laws are poorly enforced. Since May 2007 the Indian
Government has been talking to the need for inclusive growth mainly to counter
act the above threats envisaged by the social scientists. It should be kept in mind
that inclusive growth can be sustained only if it is built on the foundations of basic
rights of the working people, especially the powerless people.
 Y. Prakash (2008) did research on “contract labour act”. The findings were that
the Act applies to every establishment in which 20 or more workmen are
employed or were employed on any day on the preceding 12 months as contract
labour and to every contractor who employs or who employed on any day of the
preceding 12 months 20 or more workmen. The contractor is required to pay
wages and a duty is cast on him to ensure disbursement of wages in the
presence of the authorized representative of the Principal Employer. In case of
failure on the part of the contractor to pay wages either in part or in full, the
Principal Employer is liable to pay the same. In case the contract labour performs
same or similar kind of work as regular workmen, they will be entitled to the same
wages and service conditions as regular workmen.
 Das, Ashis, Pandey, Dhananjay (2004) did research on “economic & social
issues relating to the contract workers”. The findings were that the Contract
Workers (CWs) get minimum statutory wages with few instances where they
receive higher wages for skilled work. Incidents of contractors deducting token
money from CW's wages were reported from the cement and white goods
companies. However, they get better deals if they have collective bargaining
strength. Illiteracy, unscrupulous contractors and hazardous working conditions
impose serious safety concerns for them. Longer working hours and job
insecurity are other factors that such workers face. There is no social security for
them except ESI. A majority of them live in slums or rented hutments with poor

civic amenities. Employers and contractors to some extent fulfill their economic
and social needs.
 Paras Jain (2005) did research on “facts of the contract labour (regulation&
abolition) act1970”. The findings were that the object of the (Contract Labour
Regulation and Abolition) Act, 1970 is to prevent exploitation of contract labour
and also to introduce better conditions of work. Contract Labour differs from
Direct Labour in terms of employment relationship with the establishment and
method of wage payment. Contract Labour, by and large is not borne on pay roll
nor is paid directly. The Contract Workmen are hired, supervised and
remunerated by the Contractor, who in turn, is remunerated by the Establishment
hiring the services of the Contractor.
 Dhiraj Ramchandani (2006) did research on “actual position of the workers”.
The findings were that the practice of employing contract labour is prevalent in
most of the industries in different occupation including skilled and semi-skilled
jobs. A workman shall be deemed to be employed as contract labour when he is
hired in connection with the work of an establishment by or through a contractor.
The various studies conducted by commissions, committees and Ministry of
Labour shows that the situation has always been exploitative. The government
has taken various initiatives to improve the situation of the contract.

RESEARCH METHODOLOGY
Research methodology is a way to systematically solving the research problems. It may
be understood as a science how research is done scientifically. It includes the overall research
design, the sampling procedure, data collection method and analysis procedure.
3.1 RESEARCH DESIGN:
A research design is a plan, structure and strategy of investigation so conceived as to
obtain answers to research problems. The plan is the complete scheme or program of research. It
includes an outline of what the investigator will do from writing the hypothesis and their
operational implications to the final analysis of data.
In general, research design is the conceptual structure within which research is conducted; it
constitutes the blue print for the collection, measurement and analysis of data. Descriptive
Research Design is used in this project.
DESCRIPITIVE RESEARCH:
A descriptive research attempts to describe systematically a situation, problem,
phenomenon, service or program, or provides information about, say, the living conditions of a
community, or describes attitudes towards an issue.
3.2 SAMPLING DESIGN:
A sample design is a definite plant for obtaining a sample from the given population. It is
determined before the data is collected.
Steps in sampling design
a) Population: all items under consideration in the field of enquiry, in this case, the employees
of.
b) Sample: The respondents that have been selected for the study.
c) Sampling unit: the individual unit of the selected sample.
d) Sample frame: For this project, the contract labour’s lists of Saint Gobain are the sample
frame.
e) Size of the sample: For this study, a sample size of 100 was taken.

3.3 SAMPLE SIZE:
A sample size of 100 is drawn the respondents are contract labours and supervisors of the
company.
3.4 DATA COLLECTION METHOD:
The data is collected through primary and secondary sources.
PRIMARY SOURCES:
The primary data is collected from the respondents.
SECONDARY SOURCES:
Secondary data is collected from the following:
 Discussions and personal observations.
 Organization report and files.
 Journals and websites.
Period of the study:
The period of the study is for 4 months
VARIOUS ACTS APPLICABLE IN SAINT-GOBAIN INDIA PRIVATE LIMITED

EMPLOYEES’ PROVIDENT FUNDS & MISC. PROVISIONS ACT, 1952
& THE SCHEMES
OBJECTOFTHE ACT
To provide wider terminal benefits to the Workers on completion of their employment.
APPLICABILITY
Every specified factory OR establishment in which 20 or more persons are employed.
Any factory or Establishment can also voluntarily cover under the Act, even if the number
of employees are less than 20.
ELIGIBILITY
 Any person who is employed for work of an establishment or employed through
contractor in or in connection with the work of an establishment and drawing
salary upto Rs.6,500/- p.m. (Basic + DA).
 Any disabled employee appointed after 1.4.2008 drawing salary upto Rs.25,000/-
 Any international worker (irrespective of salary limit)
PAYMENT OF CONTRIBUTION
 The employer shall pay the contribution payable to the EPF, DLI and Employees’
Pension Fund in respect of the member of the Employees’ Pension Fund employed by
him directly by or through a contractor.
 It shall be the responsibility of the principal employer to pay the contributions payable to
the EPF, DLI and Employees’ Pension Fund by himself in respect of the employees
directly employed by him and also in respect of the employees directly employed by him
and also in respect of the employees employed by or through a contractor.
RATES OFCONTRIBUTION
 Employer - 12% (8.33%+3.67%)
 Employee - 12%
 Govt. - 1.16%

 The employer also will pay administrative charges @ 1.11% on maximum limit of
Rs.6500 whereas an exempted establishment will pay inspection charges @ 0.005% on
the total wages paid.
BENEFITS
 Withdrawal of accumulated amount with interest on exit from employment.
 Advances in severely restricted circumstances like buying house,
marriage/education, etc.
 Pension to the employees under Employees’ Pension Scheme a
 Insurance under Employees’ Deposit Linked Insurance Scheme.
DAMAGES ON DELAYED PAYMENT
 Less than 2 months ….@ 5% per annum
 Two months and above but less than upto four months …. @10% per annum
 Four months and above but less than upto six months …. @ 15% per annum
 Six months and above ….@ 25% per annum
 Simple Interest @12% p.a. on delayed payment of contribution.
PENALPROVISION
 For contraventions of Provisions of the Act, imprisonment upto 3 years and fine upto
Rs.10,000/-.
 For repeated contraventions of the Act, imprisonment upto 5 years and fine upto
Rs.25,000/-.
SCHEME EMPLOYEE’S EMPLOYER’S CENTRAL
GOVT’S
Provident
Fund Scheme
12%
Amount > 8.33% (in case
where
contribution is 12% of 10%)
10% (in case of certain
Establishments as per details
given
earlier)
NIL
Insurance
Scheme
NIL 0.5 NIL
Pension
Scheme NIL
8.33% (Diverted out of
Provident
Fund (12) 1.16%
1.16%

EMPLOYEES’ STATE INSURANCE ACT, 1948 & SCHEME
OBJECTOFTHE ACT
To provide social insurance for the employees.
APPLICABILITY OF THE ACT & SCHEME
Is extended in area-wise to factories employing 10 or more persons and establishments
employing 20 or more person.
COVERAGE OFEMPLOYEES
Employees drawing gross wages upto Rs.21000/- per month, engaged either directly or
through contractor.
RATE OF CONTRIBUTIONOFTHE WAGES
Employers’ 4.75%
Employees’ 1.75%
MANNER AND TIME LIMIT FOR MAKING PAYMENT OF
CONTRIBUTION
The total amount of contribution (employee’s share and employer’s share) is to be
deposited with the authorised bank through a challan in the prescribed form in quadruplicate on
or before 21st of month following the calendar month in which the wages fall due.
BENEFITSTO THE EMPLOYEES UNDER THE ACT
Medical, sickness, extended sickness for certain diseases, enhanced sickness, dependents
maternity, besides funeral expenses, rehabilitation allowance, medical benefit to insured person
and his or her spouse.
WAGES FOR ESI CONTRIBUTIONS
To be deemed as wages
 Basic pay
 Dearness allowance
 House rent allowance
 City compensatory allowance

 Overtime wages (but not to be taken into account for determining the coverage
of an employee)
 Payment for day of rest
 Production incentive
 Bonus other than statutory bonus
 Night shift allowance
 Heat, Gas & Dust allowance
 Payment for unsubstituted holidays
 Meal/food allowance
 Suspension allowance
 Lay off compensation
 Children education allowance (not being reimbursement for actual tuition fee).
NOT to be deemed as wages
 Contribution paid by kthe employer to any pension/provident fund or under ESI
Act.
 Sum paid to defray special expenses entailed by the nature of employment –
Daily allowance paid for the period spent on tour.
 Gratuity payable on discharge.
 Pay in lieu of notice of retrenchment compensation
 Benefits paid under the ESI Scheme.
 Encashment of leave
 Payment of Inam which does not form part of the terms of employment.
 Washing allowance
 Conveyance Amount towards reimbursement for duty related journey.
CONTRIBUTION PERIOD BENEFIT PERIOD
1st April to 30th September. 1st January to 30th June
1st October to 31st March 1st July to 31st December
CONTRIBUTIONPERIOD
If the person joined insurance employment for the first time, say on 5th January,his first
contribution period will be from 5th January to 31st March and his corresponding first benefit will
be from 5th October to 31st December.
PENALPROVISION
• For contraventions of Provisions of the Act, imprisonment upto 2 years and fine upto
Rs.5,000/-.
• For repeated contraventions of the Act, imprisonment upto 5 years and fine upto Rs.25000/-.

FACTORIES ACT, 1948
APPLICABILITY OF THE ACT
To any premises where manufacturing activities are carried out with the aid of power and
where 10 or more workers are/were working OR where manufacturing activities are carried out
without the aid of power and where 20 or more workers are/were working.
EMPLOYER TO ENSURE HEALTH OFWORKERS PERTAINING TO
 Cleanliness Disposal of wastes and effluents
 Ventilation and temperature dust and fume
 Overcrowding Artificial humidification Lighting
 Drinking water Spittoons.
SAFETYMEASURES
 Facing of machinery
 Work on near machinery in motion.
 Employment prohibition of young persons on dangerous machines.
 Striking gear and devices for cutting off power.
 Self-acting machines.
 Casing of new machinery.
 Prohibition of employment of women and children near cotton-openers.
 Hoists and lifts.
WORKING HOURS, SPREAD OVER & OVERTIME OFADULTS
 Weekly hours not more than 48 hours.
 Daily hours, not more than 9 hours.
 Intervals for rest at least ½ hour on working for 5 hours.
 Spreadover not more than 10½ hours.
 Overlapping shifts prohibited.
 Extra wages for overtime double than normal rate of wages.
 Restrictions on employment of women before 6AM and beyond 7 PM.
WELFARE MEASURES
 Washing facilities
 Facilities for storing and drying clothing

 Facilities for sitting
 First-aid appliances – one first aid box not less than one for every 150 workers.
 Canteens when there are 250 or more workers.
 Shelters, rest rooms and lunch rooms when there are 150 or more workers.
 Creches when there are 30 or more women workers.
 Welfare office when there are 500 or more workers.
EMPLOYMENT OFYOUNG PERSONS
 Prohibition of employment of young children i.e. below 14 years.
 Adolescent workers (15 to 18 years of age) are permitted with less working
hours and special conditions.
ANNUAL LEAVE WITH WAGES
A worker having worked for 240 days @ one day for every 20 days of working.
PENALPROVISION
 For contraventions of Provisions of the Act, imprisonment upto 7 years or fine
upto Rs.2,00,000/-.
 For continuous contraventions of the Act, imprisonment upto 10 year and/or
fine upto Rs.5,000/- per day

INDUSTRIAL DISPUTES ACT, 1947
OBJECTOFTHE ACT
Provisions for investigation and settlement of industrial disputes and for certain
other purposes.
IMPORTANT DEFINITION
Industry – has attained wider meaning than defined except for domestic employment,
covers from shops with nominal employees to big industrial units.
Workman – Includes almost all category of employees, except person doing
Managerial and Administrative work, and also Supervisors earning wages more
than Rs.10,000/- p.m.
MACHINERYTO DEALWITH DISPUTES
Works Committee–Joint Committee with equal number of employers and employees’
representatives for discussion of certain common problems.
Conciliation–is an attempt by Govt. Official in helping to settle the disputes.
Adjudication – Labour Court, Industrial Tribunal or National Tribunal to hear and decide
the dispute.
PERSONSBOUND BYSETTLEMENT
 When in the course of conciliation proceedings etc., all persons working or
joining subsequently.
 Otherwise than in course of conciliation, upon the parties to the settlement.
PERIOD OFOPERATION OFSETTLEMENTS AND AWARDS
 A settlement for a period as agreed by the parties, or
 Period of six months on signing of settlement.
 An award for one year after its enforcement.
CONDITIONSFOR LAYING OFF
Failure, refusal or inability of an employer to provide work due to
 Shortage of coal, power or raw material.

 Accumulation of stocks.
 Breakdown of machinery.
 Natural calamity.
LAY OFFCOMPENSATION
Payment of wages except for intervening weekly holiday compensation 50% of
total or basic wages and DA for a period of lay off upto maximum 45 days in a
year.
NOTICE OFCHANGE
21 days notice to be given by an employer to workmen about changing the
conditions of service as provided in IVth Schedule.
PROHIBITION OF STRIKES & LOCK OUT
 Without giving to the employer notice of strike, as hereinafter provided, within six
weeks before striking.
 Within fourteen days of giving such notice.
 Before the expiry of the date of strike specified in any such notice as aforesaid.
 During the pendency of any conciliation proceedings before a conciliation officer and
seven days after the conclusion of such proceedings.
 During the pendency of conciliation proceedings before a Board and seven days after
the conclusion of such proceedings.
 During the pendency of proceedings before a Labour Court, Tribunal or National
 Tribunal and two months, after the conclusion of such proceedings.
 During the pendency of arbitration proceedings before an arbitrator and two months
after the conclusion of such proceedings, where a notification has been issued under
 Sub-Section(3A) of section 10A
 During any period in which a settlement or award is in operation, in respect of
any of the matters covered by the settlement or award.
PRIOR PERMISSIONFROM THE GOVT.
When there are more than 100 workmen (in UP 300 or more) during proceeding 12
months, prior permission to be obtained by the Employer for Lay Off, Retrenchment or
Closure.
RETRENCHMENT OFWORKMEN COMPENSATION& CONDITIONS
No employees who has worked for 240 days in a year shall not be
retrenched unless paid/given:
 Retrenchment compensation @ 15 days’ wages for every completed year of
 service.
 Given One month’s notice or wages in lieu thereof.

 Reasons for retrenchment
 Complying with principle of ‘last come first go’.
NOTICE FOR CLOSURE OFAN UNDERTAKING
 60 days’ notice to the authorities for intended closure in prescribed form, when there are
minimum 50 workers and less than 100 workers.
 To apply for Prior permission from Govt. atleast 90 days before the intended closure,
when there are 100 or more workmen during preceding 12 months (in UP
 300 or more workmen)
PENALPROVISION
 For breach of provisions of the Act, the employer shall be punishable with
imprisonment upto 6 months and/or fine not exceeding Rs.5,000/-.
 On continuity of offence fine upto Rs.200/- per day.
PAYMENT OF GRATUITYACT, 1972
OBJECTOFTHE ACT
To provide certain reward to the employees for a long meritorious service, at the
end of their services.
APPLICABILITY
 Every factory, mine, oil field, plantation, port, railways, shop or establishment
employing 10 or more employees
 Once Act applies, it continues to apply even if employment strength falls below 10.
ELIGIBILITY
Any person employed on wages/salary (irrespective of designation) and completed 5
years of continuous service (except in case of death), shall be eligible for gratuity at the end of
their services.
BENEFITS
 15 days wages (basic + DA) for every completed year of service.
 Maximum gratuity payable is Rs.10,00,000/-

CALCULATION METHOD
Monthly salary
-------------------
Gratuity = 26 X 15 days X No. of year of service
FORFEITUREOFGRATUITY
 Gratuity can be forefeited on termination of an employee for moral turpitude or riotous or
disorderly behaviour.
 Wholly or partially for wilfully causing loss, destruction of property etc.

DISPLAY OF NOTICE
Certain notices & abstract of Act are to be displayed at conspicuous place at the main
entrance in English language or the language understood by majority of employees of the
factory/establishment.
NOMINATION
To be obtained by employer after expiry of one year’s service, in Form ‘F’.
PENALPROVISION
 Imprisonment upto 2 years or fine upto Rs.20,000 for avoiding to make
payment by making false statement or representation.
 For other contraventions of the Act, imprisonment upto one year and/or fine
upto Rs.10,000
PAYMENT OF WAGES ACT, 1936
OBJECTOFTHE ACT
The main object of the Act is to regulate the payment of wages of certain
classes of employed persons, avoid unnecessary delay in the payment of wages
and to prevent unauthorised deductions from the wages.
APPLICABILITY OFACT
 Factories, industrial Establishments, Tramway service or motor transport

service, Air transport service, Dock, Wharf or Jetty, Inland vessel, Mine,
quarry or oil-field Plantation, Workshop, construction activities or other
establishment etc.
 In the state of Maharashtra the Act is extended to Shops & commercial
establishments.
COVERAGE OFEMPLOYEES
The employees drawing average wage upto Rs.10,000/- p.m.
TIME OF PAYMENT OF WAGES
The wages of every person employed be paid:
 When less than 1000 persons are employed shall be paid before the
expiry of the 7th day of the following month.
 When more than 1000 workers, before the expiry of the 10th day of the
following month.
MODE OF PAYMENT OFWAGES
 All wages shall be paid in current coins or currency notes or in both.
 After obtaining the authorization, either by cheque or by crediting the
wages in employee’s bank Account.
 Wages exceeding Rs.3000/- to be paid by cheque/through bank
(Applicable in Maharashtra only).
FINES AS PRESCRIBED BY
 Not to imposed unless the employer is given an opportunity to show cause
To record in the register (Sec.8)
DEDUCTION FROM WAGES
Deductions such as, fine, deduction for amenities and services supplied by the employer,
advances paid, over payment of wages, loan, granted for housebuilding or other purposes,
income tax payable, in pursuance of the order of the Court, PF contributions, cooperative
societies, premium for Life Insurance, contribution to any fund constituted by employer or a
trade union, recovery of losses, ESI contributions etc. can be made from the wages, in
accordance with Section 7.
MAXIMUM DEDUCTIONS
 The maximum permissible deductions is 50% of the wages

 In the event of deduction include payment to co-operative societies, the
maximum permissible deduction is 75% of the wages.
PENALPROVISION
 Penalties for breach of provisions are from Rs.200/- to Rs.1000/-.
 Repeat offences attract 1 month to 6 months imprisonment and fine from
Rs.500/- to Rs.3000/-
 Delayed wage payments attract penalty f Rs.100/- per day
MATERNITY BENEFIT ACT, 1961
OBJECTOFTHE ACT
To protect the dignity of motherhood and to provide certain benefits to women
employees at the time of child-birth.
COVERAGE OFTHE ACT
Upon all women employees either employed directly or through contractor employed in
mines, factories, plantations and also in other establishments if the State Government so
decides. Also applicable to every shop or establishment in which ten or more
persons are employed.
CONDITIONSFOR ELIGIBILITYOF BENEFITS
Women indulging temporary of unmarried are eligible for maternity benefit when she is
expecting a child and has worked for her employer for at least 80 days in the 12 months
immediately proceeding the date of her expected delivery.
This Act shall not be applicable when and where ESI Act is applicable.
BENEFITS
 Leave with average pay for six weeks before the delivery.
 Leave with average pay for six weeks after the delivery.
 A medical bonus of Rs.3500/- if the employer does not provide free medical care to the
woman.
 An additional leave with pay up to one month if the woman shows proof of illness due
to the pregnancy, delivery, miscarriage, or premature birth.
 In case of miscarriage, six weeks leave with average pay from the date of miscarriage.
NON CASH BENEFITS/PRIVILEGE

 Light work for ten weeks (six weeks plus one month) before the date of her expected
delivery, if she asks for it.
 Two nursing breaks in the course of her daily work until the child is 15 months old.
 No discharge or dismissal while she is on maternity leave.
 No change to her disadvantage in any of the conditions of her employment while on
maternity leave.
 Pregnant women discharged or dismissed may still claim maternity benefit from the
employer.
Exception : Women dismissed for gross misconduct lose their right under the Act for
Maternity Benefit
MAINTENANCE OFREGISTERS AND RECORDS
Every employer shall prepare and maintain such registers, records and musterrolls
and in such manner as may be prescribed by Rules.
PENALPROVISION
For breach of provisions of the Act, the employer shall be punishable with
imprisonment upto one year and/or fine not exceeding Rs.5,000.
EMPLOYEE’S COMPENSATION ACT, 1923
OBJECTOFTHE ACT
This Act earlier known as “Workmen’s Compensation Act is introduced as a kind
of Social Security Scheme for the workmen who suffer employment injury, occupational decease
etc.
APPLICABILITY
To those employers employing persons listed in Schedule II of the Act and to whom ESI
Act, not applicable.
COVERAGE OFWORKMEN
All workers irrespective of their status or salaries either directly or through contractor or
a person recruited to work abroad.

ELIGIBILITY
Any workman who is injured by accident arising out of and in the course of his
employment OR contracts occupational disease peculiar to his occupation.
BENEFITS
 In case of death results from injury, 50% of monthly wages X relevant factor OR
Rs.1,20,000/- whichever is more.
 In case of Permanent total disablement resulted from the injury, 60% of monthly wages
X relevant factor OR Rs.1,40,000/- whichever is more
 Where permanent , partial disablement or termporary disablement results from injurty, as
per prescribed schedule.
 In case of death funeral expenses of Rs.5,000/-
 Relevant factor is based on the age of workman
 For the purpose of calculation of compensation, the monthly salary ceiling is Rs.8000/-,
as per Central Govt. Notification dated 31.05.2010.
 In the event of death or in the event of any dispute, the compensation to be deposited with
the Commissioner within one month.
WHEN AN EMPLOYEE IS NOT LIABLE FOR COMPENSATION
 In respect of any injury which does result in the total or partial disablement of
the workman for a period exceeding three days.
 In respect of any injury, not resulting in death or permanent total disablement
caused by an accident which is directly attributable to-
 The workman having been at the time thereof under the influence of drink or
drugs, or
 Willful disobedience of the workman to an order expressly given, or to a rule
expressly framed, for the purpose of securing the safety of workmen, or
 Willful removal or disregard by the workman of any safety guard or other device which
he knew to have been provided for the purpose of securing the safety of workman.
REPORT OFACCIDENT
Report of fatal Accident and Serious Injury within 7 days to the Commissioner
(not application when ESI Act applies).
PENALPROVISION
In case of default by employer - 50% of the compensation amount +
interest to be paid to the workman or his dependents at the case may be.

Other offences attract fine upto Rs.5000/-
CHAPTER-IV

ANALYSIS AND INTERPERTATION
1) Age category
Among the sample, no labour is below 20 years. 54 labours are under the age category of 21-30.
40 labours are under the category of 31-40 and 6 labours are under the category of 41-50.
2) Gender
0
10
20
30
40
50
60
<20 21-30 31-40 41-50
AGE
age
0
20
40
60
80
100
MALE FEMALE
GENDER
GENDER

Among the sample, 92 labours are male and 8 are female labours.
3) Designation
Among the sample, 30 are supervisors and 70 are helpers.
4) Awareness about safety, rules and regulation of the company
56 labours are strongly agreed that they are aware about safety, rules and regulations of the
factory. 32 labours are agreed they are aware about safety, rules and regulations. 12 labours are
neither agree nor disagree about the safety, rules and regulations. Mostly all are aware about the
rules and regulations of the factory. Nobody said they are strongly disagree about the awareness
of safety, rules and regulation of the factory.
0
10
20
30
40
50
60
70
80
Supervisior Helper
Designation
Designation
0
10
20
30
40
50
60
SA A N D SD
AWARNESS

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