As I understand:
1. Your firm was registered under the Shops & Establishments Act. Now your Company has started a manufacturing unit and has merged it with the establishment which had been registered under the Shops Act. From what you have stated, it is very clear that you will have to apply for registration under the Factories Act since manufacturing activity is happening in your unit.
Irrespective of whether you are covered under the Shops Act or the Factories Act, provisions of ESI & PF Acts, and also other labor laws will continue to apply to your company. The only major shift will be coverage under the Factories Act.
Trust I have answered your query. For any further clarification, please feel free to call me on my mobile: 09717726667 or contact me via email: vasantnair10@gmail.com.
Best Wishes, Vasant Nair
From India, Mumbai
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921. Your firm was registered under the Shops & Establishments Act. Now your Company has started a manufacturing unit and has merged it with the establishment which had been registered under the Shops Act. From what you have stated, it is very clear that you will have to apply for registration under the Factories Act since manufacturing activity is happening in your unit.
Irrespective of whether you are covered under the Shops Act or the Factories Act, provisions of ESI & PF Acts, and also other labor laws will continue to apply to your company. The only major shift will be coverage under the Factories Act.
Trust I have answered your query. For any further clarification, please feel free to call me on my mobile: 09717726667 or contact me via email: vasantnair10@gmail.com.
Best Wishes, Vasant Nair
From India, Mumbai
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Dear Mamta,
If your company is merged and earlier you were covered under the Shop and Establishment Act, now in this case, you have to submit your Shop and Establishment license to the concerned labor department and have to apply for a license under the Factories Act.
From India, Solon
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If your company is merged and earlier you were covered under the Shop and Establishment Act, now in this case, you have to submit your Shop and Establishment license to the concerned labor department and have to apply for a license under the Factories Act.
From India, Solon
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This company has 30 employees with more than 10 HP power supply in the MIDC area, as stated by Miss Mamta Agrawal.
However, to my knowledge, units in the MIDC area are not covered under the Shop and Establishment Act. Kindly correct me if I am mistaken.
Thank you.
From India, Mumbai
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However, to my knowledge, units in the MIDC area are not covered under the Shop and Establishment Act. Kindly correct me if I am mistaken.
Thank you.
From India, Mumbai
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Dear Mamta,
I have gone through all the posts, and everyone has provided correct information. I recommend that you consider hiring a labor consultant who can liaise with all the concerned departments in your organization and take care of all the necessary registrations as per the different Acts applicable in your state. In addition to the registrations required under the Factory Act, ESI, and EPF, there may be other registrations mandated by the laws governing your state or municipal limits.
Regards,
Bipender Gupta
From India, Delhi
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I have gone through all the posts, and everyone has provided correct information. I recommend that you consider hiring a labor consultant who can liaise with all the concerned departments in your organization and take care of all the necessary registrations as per the different Acts applicable in your state. In addition to the registrations required under the Factory Act, ESI, and EPF, there may be other registrations mandated by the laws governing your state or municipal limits.
Regards,
Bipender Gupta
From India, Delhi
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ESI Act, EPF Act, and Factory Act - all these are separate departments. Therefore, for coverage under these, you have to apply separately. You may proceed for coverage under these Acts simultaneously.
Dinesh Rajbhar
Consultant
9322503549
From India, Mumbai
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Dinesh Rajbhar
Consultant
9322503549
From India, Mumbai
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hi could we deduct pf below minimum wages.also tell me that could we bifurcate minimum wages in (basic+ da+ hra) for pf deduction
From India, New Delhi
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From India, New Delhi
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You can divide the minimum wages into different allowances, but the gross rate should be equivalent to the minimum wages. Moreover, as stated by you on both Basic and DA, PF deduction is applicable. Create the allowances in such a manner where you can justify to the authorities that you are correct. (say 10% of gross is basic, cannot be justified)
Bipender Gupta
From India, Delhi
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Bipender Gupta
From India, Delhi
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It is not gross wages that should be equal to minimum wage. It is Basic & DA which should be equal to minimum wage. For purposes of PF deductions, it will have to be on the statutory minimum wage.
Vasant Nair
From India, Mumbai
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Vasant Nair
From India, Mumbai
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PF is deducted on Minimum Wage. If you bifurcate the statutory minimum wage into Basic, DA, HRA, then the basic and DA will be less tan the minimum wage. That would be incorrect.
From India, Mumbai
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From India, Mumbai
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Dear Mr. Nair,
You referred to the term "minimum wages." Can you please suggest under which section of the PF Act the term "minimum wages" is defined? The term "basic wages" has been defined, clearly stating what should be included and what should not be included. Section 2(b) defines basic wages, and Section 6 provides for the percentage contribution of Basic Wages + DA + all retaining allowances. Am I missing something?
Thanks and regards,
Devarajan
From India, Mumbai
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You referred to the term "minimum wages." Can you please suggest under which section of the PF Act the term "minimum wages" is defined? The term "basic wages" has been defined, clearly stating what should be included and what should not be included. Section 2(b) defines basic wages, and Section 6 provides for the percentage contribution of Basic Wages + DA + all retaining allowances. Am I missing something?
Thanks and regards,
Devarajan
From India, Mumbai
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