Hello Seniors,

My company is in Bangalore, and we follow Karnataka rules for all our salary and other regulations. We have taken AMC from a company in another state where our technicians and engineers are deployed. Could you please let me know which statutory compliance our company needs to follow? It is very difficult for us to manage different compliance for only 4 employees.

Thanks,
Ms. Seema

From India, Bangalore
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Dear Ms. Seema,

If you have obtained a license under the Contract Labour Act for those individuals, then you must adhere to the central rules. It is advisable to follow the central rules for those employees to facilitate their work, or you can choose to comply with the respective state's Shops & Est Act.

Regards,
M. Vinay Kumar

From India, Hyderabad
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Hi Ms Seema, Could you please highlight what exactly the problems your organization facing...
From India, Chennai
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Hi there,

Basically, from our company, a few team members are currently at a client site under an Annual Maintenance Contract. Our company is mid-sized, with fewer than 70 employees. We are here to ensure we are following all the regular compliance regulations of our state.

We want to clarify whether for employees at the client site, their legal department requires us to adhere to the compliance standards of the large manufacturing company they are working for. Should we follow their compliance rules and salary breakdown specific to that state, or should we stick to our own state regulations since they are our employees?

Additionally, I would like to understand how we should categorize skilled, semi-skilled, and unskilled labor.

Thanks & Regards

From India, Bangalore
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Hi,

I understand that you are a contractor supporting the Principal Employer by deploying your resources at their premises, which are in another state. In this case, you are a contractor and are supposed to comply with the Contract Labour Act. However, the applicability of the Contract Labour Act needs to be verified based on the number of your employees (contract labours) where you have been deployed, or as per state rules (not sure about the nature of the business of your principal employer).

In any case, you are supposed to maintain certain mandatory statutory registers separately for those contract workers, whether they come under the CLRA Act or the Minimum Wages Act based on the applicability.

From India, Chennai
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There are different acts that apply, and your compliance requirement at the client's place needs to be based on a number of factors.

1. If you have 20 or more employees at one client location, you need a license under the Contract Labour Act. If not, then you do not need a license.

2. You need to have PF registration at your head office and pay PF for all employees other than exempt employees. You may need to show proof of payment of statutory dues to the client.

3. You need to register for ESIC and cover all employees with a gross salary of up to ₹25,000. Do this also at the central location, but ensure that family photo smart cards are issued to all employees, even if they are not in Bangalore. Again, proof of coverage needs to be shown to the client.

4. You need to maintain an attendance register, leave register, fines register, advance register, and muster roll/wage register at each location, properly filled and kept up to date.

5. Payment of wages (other than direct transfer to the bank) should be made in the presence of a representative of the principal employer (client), and their signature/certificate should be taken on the last page of the wage registers for each month.

The above requirements are not negotiable and are part of the cost of doing business. These should have been taken into account when quoting for the work.


From India, Mumbai
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Dear Seema,

I'm suggesting a simple way. I know you are a contractor and you provide a few employees to your principal employer in another state. You want to know whose state rules you'll follow. Don't worry; first of all, you are required to take a labor license from there on behalf of those companies. However, I think you are not eligible for a contract labor license because you deploy only four employees. Hence, you are required to maintain a few registers under the Contract Labor Act, and it's applicable for all India. The details are given below:

1. Form - XIII
2. Form - XIV
3. Form - XV
4. Form - XVI
5. Form - XVII
6. Form - XIX
7. Form - XX
8. Form - XXI
9. Form - XXII
10. Form - XXIII

EPFO & ESIC deductions from your employees' deposits at your main code.

If you have any queries about compliance, you can contact me through my email address .

Thanks & Regards,
Ashish Shaw

From India, Kolkata
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Dear Ms. Seema,

Bengaluru

Position: The respective State Govt.'s Rules framed under the C L (Regulation & Abolition) Act 1070 shall naturally apply to the Establishment (all other Establishments located in that State jurisdiction) of the Principal Employer who has engaged your Establishment (via Form IV & V) to deploy the agreed number of CL within their premises for the work of the Principal Employer given on contract to your Establishment.

Please be guided accordingly. The classification of Skilled/Semi-Skilled and Unskilled can be ascertained from the respective State Govt Notification. Further, the moot point is not the number of CL engaged by the Contractor-Company/Establishment but the will to be compliant-Company and remain so all along. The choice is yours. The law of the land will take its course, sooner than later. So, beware.

Kritarth Team of Compliance Outsourcing Advisory

Kritarth Consulting Pvt Ltd, Kritarth Consulting Private Limited

Bengaluru Unit

12th Oct 2014.

From India, Delhi
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Hi,

I am working with a company based in Delhi and I need to know the following:

1. The amount of PF which we need to submit to the PF authority as the salary amount after deducting LTA and medical is 19,833 and 10,000 per month as per the new rules.
2. The amount of PF which we need to deduct from the employee's salary as per the new rules.
3. The salary break-ups for those who haven't opted for PF and their salary is 22,000 per month.
4. The link where we need to upload employees' KYC details.

From India, Chandigarh
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Dear all Any prescribe any time salry limit for referring a dispute to the labour court? or any body can go to the labour court irrespective of salary? Please guide me Regards
From India, New Delhi
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