Hi,
If a company is governed by the Shop & Establishment Act and after some years, the company starts a new manufacturing unit with 15 employees (including workers). Suddenly, it merges both units, and now the total employee strength of this unit becomes 30 (including workers). However, six months have passed, and this company does not comply with the Factory Act, ESI Act, and PF Act. As an HR professional, I need to proceed further. I want to know how to proceed for these three acts. Are there any penalties? Should I contact the factory inspector?
Please, seniors, help me out in this situation as soon as possible as I lack experience in statutory compliances. My email ID is mamkum235@gmail.com.
Regards,
Mamta Agrawal
From India, Mumbai
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2If a company is governed by the Shop & Establishment Act and after some years, the company starts a new manufacturing unit with 15 employees (including workers). Suddenly, it merges both units, and now the total employee strength of this unit becomes 30 (including workers). However, six months have passed, and this company does not comply with the Factory Act, ESI Act, and PF Act. As an HR professional, I need to proceed further. I want to know how to proceed for these three acts. Are there any penalties? Should I contact the factory inspector?
Please, seniors, help me out in this situation as soon as possible as I lack experience in statutory compliances. My email ID is mamkum235@gmail.com.
Regards,
Mamta Agrawal
From India, Mumbai
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Mr. Mamta Agrawal,
You have to take both Factory as well as Shop & Establishment registration. At the same time, you have to get PF registration. For ESI, if your factory and office are situated within the ESI covered area, verify that.
For more details, please see the link [KVJ RAGHUNATH: LABOUR LEGISLATIONS](http://labourlaws-4u.blogspot.com/2010/04/labour-legislations.html).
KVJ Raghunath
[Link outdated-removed] ([Search On Cite](https://www.citehr.com/results.php?q=KVJ RAGHUNATH) | [Search On Google](https://www.google.com/search?q=KVJ RAGHUNATH))
9701966688
From India, Vijayawada
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You have to take both Factory as well as Shop & Establishment registration. At the same time, you have to get PF registration. For ESI, if your factory and office are situated within the ESI covered area, verify that.
For more details, please see the link [KVJ RAGHUNATH: LABOUR LEGISLATIONS](http://labourlaws-4u.blogspot.com/2010/04/labour-legislations.html).
KVJ Raghunath
[Link outdated-removed] ([Search On Cite](https://www.citehr.com/results.php?q=KVJ RAGHUNATH) | [Search On Google](https://www.google.com/search?q=KVJ RAGHUNATH))
9701966688
From India, Vijayawada
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Mr. Raghunath, Ur website is very awesome and very useful to many members.......................thanx for sharing it.........
From India, Hyderabad
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From India, Hyderabad
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Mr. KVJ Raghunath,
Thank you for your reply. I agree with your response, but this company was established 1.5 years ago. Now, my query is, this company has 30 employees with more than 10 HP power supply in the MIDC area. Are there any offenses or penalties? In this case, how do we apply for the Factory Act and PF Act? Should we first search for a factory inspector, or should we do the necessary documentation beforehand?
Regards,
Miss Mamta Agrawal
From India, Mumbai
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Thank you for your reply. I agree with your response, but this company was established 1.5 years ago. Now, my query is, this company has 30 employees with more than 10 HP power supply in the MIDC area. Are there any offenses or penalties? In this case, how do we apply for the Factory Act and PF Act? Should we first search for a factory inspector, or should we do the necessary documentation beforehand?
Regards,
Miss Mamta Agrawal
From India, Mumbai
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Mr. vsyamprasad , I want your view also in this regards as U r ESI Inspector Regards Mamta
From India, Mumbai
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From India, Mumbai
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Your company was established 1.5 years ago. Your establishment will be covered under ESI from the date your establishment has attained a minimum of 10 employees drawing wages up to Rs. 10,000 per month. You have to pay the ESI contribution from the date it becomes applicable to your establishment.
Your establishment will be covered under PF from the date the number of employees reaches 20 in your establishment.
Dinesh P. Rajbhar Consultant
From India, Mumbai
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Your establishment will be covered under PF from the date the number of employees reaches 20 in your establishment.
Dinesh P. Rajbhar Consultant
From India, Mumbai
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Dear Mamta,
First, you have to approach the Concerned Area SSO (Insurance Inspector) or the Regional Office along with Form-01 - Registration form under ESI. All the columns are self-explanatory only. You have to submit the Form along with all documentary evidence. After allotting the ESI Code No., you have to comply under ESI as per provisions. In case of any specific queries, feel free to call me at 09443434313.
Please act speedily, since otherwise, you will have to bear interest and damages for late compliance.
Hope I clarified your doubt.
From India, Hyderabad
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First, you have to approach the Concerned Area SSO (Insurance Inspector) or the Regional Office along with Form-01 - Registration form under ESI. All the columns are self-explanatory only. You have to submit the Form along with all documentary evidence. After allotting the ESI Code No., you have to comply under ESI as per provisions. In case of any specific queries, feel free to call me at 09443434313.
Please act speedily, since otherwise, you will have to bear interest and damages for late compliance.
Hope I clarified your doubt.
From India, Hyderabad
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Mr. VSP,
I am concerned whether the SSO (Insurance Inspector) will also be the factory inspector. Can we approach the concerned Area SSO (Insurance Inspector) or the Regional Office For ESI before the implementation of the factory act since we do not have the factory act in place yet?
Regards,
Mamta Agrawal
From India, Mumbai
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I am concerned whether the SSO (Insurance Inspector) will also be the factory inspector. Can we approach the concerned Area SSO (Insurance Inspector) or the Regional Office For ESI before the implementation of the factory act since we do not have the factory act in place yet?
Regards,
Mamta Agrawal
From India, Mumbai
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No... No... ESI SSO will be different from the factory inspector.
First, you apply for registration under the Factory Act, duly applying for a license from the Office of the Inspector of Factories. I hope it's a little lengthy procedure, which you must face.
Thereafter, only you have to be covered under ESI with evidence of the manufacturing unit.
Otherwise, as you mentioned, you are covered earlier under the Shops & Estt. Act. Until you get the factory license, you can approach the regional authorities with evidence of shops & estt. registration. Since your unit has crossed 20 employees, you can apply for an ESI Code number based on the Shops & Estt. Act.
Due to the recent amendment in the ESI Act, the concept of 'power' has been deleted from the definition of the Act. Only ESI will concern 'some manufacturing' and whether '10' persons are working on the premises or not.
I hope you understand the point. As per my perception, I have given this suggestion. You can proceed accordingly.
From India, Hyderabad
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First, you apply for registration under the Factory Act, duly applying for a license from the Office of the Inspector of Factories. I hope it's a little lengthy procedure, which you must face.
Thereafter, only you have to be covered under ESI with evidence of the manufacturing unit.
Otherwise, as you mentioned, you are covered earlier under the Shops & Estt. Act. Until you get the factory license, you can approach the regional authorities with evidence of shops & estt. registration. Since your unit has crossed 20 employees, you can apply for an ESI Code number based on the Shops & Estt. Act.
Due to the recent amendment in the ESI Act, the concept of 'power' has been deleted from the definition of the Act. Only ESI will concern 'some manufacturing' and whether '10' persons are working on the premises or not.
I hope you understand the point. As per my perception, I have given this suggestion. You can proceed accordingly.
From India, Hyderabad
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Dear Mamata,
Please find attached a few documents regarding PF, ESIC, and labor laws. I have collected them from this forum only. I request you to kindly go through a similar post. You can get lots of information apart from these as well.
Most of these documents have been downloaded by me from this forum only.
From India, Bangalore
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Please find attached a few documents regarding PF, ESIC, and labor laws. I have collected them from this forum only. I request you to kindly go through a similar post. You can get lots of information apart from these as well.
Most of these documents have been downloaded by me from this forum only.
From India, Bangalore
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