Dear Seniors,
point 1:Iam looking for your valuable advice regarding we have factory license, in the same premises we have registered office(administrative tasks) we want to cover register office in the shops and commercial establishment but factory inspector says that even though if it is in the same premises registered office is covered under the factory act only no need shops and commercial establishment.
Point 2 : we took labour license for 60 worker to be employed on any day ,here we are planing to take work compensation instead of ESI ,here my point is either to take as per license or average workers ,in case if we take for average workers employed what are the consequence arise that time of claim legally.
kindly looking for suggestions on this issue.
your sincerely,
Naresh Gadde
From India, Hyderabad
8point 1:Iam looking for your valuable advice regarding we have factory license, in the same premises we have registered office(administrative tasks) we want to cover register office in the shops and commercial establishment but factory inspector says that even though if it is in the same premises registered office is covered under the factory act only no need shops and commercial establishment.
Point 2 : we took labour license for 60 worker to be employed on any day ,here we are planing to take work compensation instead of ESI ,here my point is either to take as per license or average workers ,in case if we take for average workers employed what are the consequence arise that time of claim legally.
kindly looking for suggestions on this issue.
your sincerely,
Naresh Gadde
From India, Hyderabad
point No;1- If the administrative office is loacted in the premises of the factory and is connected with the factory namely looking after administtraive affairs pertaining factory, then it will be treated as part of the factory and the Factories act is applicable to the administrative office since the definition of factory covers the entire premises and precincts there of with all establishments loacted in it which are carrying on manufacturing activity or any activity connected with it.
point No:2 the query is not clear to me. However a factory in the first instance is covered by ESI Act only and when ESI Act is applicable , Employees' compensation act is not applicable. You have no option.
B.Saikumar
HR & labour law advisor
09930532927
From India, Mumbai
point No:2 the query is not clear to me. However a factory in the first instance is covered by ESI Act only and when ESI Act is applicable , Employees' compensation act is not applicable. You have no option.
B.Saikumar
HR & labour law advisor
09930532927
From India, Mumbai
Dear Sai kumar,
Thanks for your reply my second point is apart of this factory we will do electrical contract works at site but we will engage subcontract execution of work but we took the license on our company name so that we are maintain all statutory records under Contract Labour act ,here instead of ESI we took workmen compensation average workers engaged ,my point is might be license we took for 60 workers ,once in contract period it touch to 60 workers on any day ,so there we have to stick to license or as our wish to take considering minimum workers on any day ,what are the consequence arises at the time of claim if not taken as per license.
Thanks&Regards
Naresh
From India, Hyderabad
Thanks for your reply my second point is apart of this factory we will do electrical contract works at site but we will engage subcontract execution of work but we took the license on our company name so that we are maintain all statutory records under Contract Labour act ,here instead of ESI we took workmen compensation average workers engaged ,my point is might be license we took for 60 workers ,once in contract period it touch to 60 workers on any day ,so there we have to stick to license or as our wish to take considering minimum workers on any day ,what are the consequence arises at the time of claim if not taken as per license.
Thanks&Regards
Naresh
From India, Hyderabad
I understand that you are undertaking to execute electrical works as a contractor at the principal employer's site under your license. In terms of sec.2(9) of the ESI Act , the definition of employee of the principal emeployer includes the contractor employee also. Thus if the principal employer is covered by the ESI Act, then the contractor employees(namely the workers you deployed at his establishment) are also covered by ESI. you might cover the workers under an insurance policy but you cannot avoid your liabilitiy under the ESI Act.
B.Saikumar
HR & Labour Law Advisor.
Mumbai
09930532927
From India, Mumbai
B.Saikumar
HR & Labour Law Advisor.
Mumbai
09930532927
From India, Mumbai
Dear Sai Kumar
Thanks for your spontaneous response to my post,incase principal employer not covered under ESIC due to non coverage of that zone ,then as a contractor we can take workmen compensation policy i hope then there will be no liability for contractor as well as principal employer.in this regard on what basis we have take workmen compensation policy for coverage of workers.kindly i hope your valuable advice on this.
Thanks&Regards
Naresh Gadde
From India, Hyderabad
Thanks for your spontaneous response to my post,incase principal employer not covered under ESIC due to non coverage of that zone ,then as a contractor we can take workmen compensation policy i hope then there will be no liability for contractor as well as principal employer.in this regard on what basis we have take workmen compensation policy for coverage of workers.kindly i hope your valuable advice on this.
Thanks&Regards
Naresh Gadde
From India, Hyderabad
Dear Mr Naresh,
Be it a contractor or employer,if the workers are deployed the responsibility of statutory compliance is primary responsibility of employer,under contract, the principal employer will award the work assignment to contractors who have these compliances in place. As regards to Esic or WC aplicability,If the work location is with in the limits of zone1 where esic Facility is available then Esic compliance is must and if the location of work is in zone3 where esic facilities can not be available then WC policy is the min compliance whic is must.Also any INSURANCE COVER which provides better and more benifits and at par with esic can be taken but must have consent/exemptions from the competent authority.
Also Watch out for Zones classification details as under-
"Zones in Maharashtra
The state has been classified in to groups A, B, C, D and D+ according to industrial development.
Group A Comprising the developed areas, viz. Mumbai Metropolitan Region (MMR) and Pune Metropolitan Region (PMR).
Group B Comprising the areas where some development has taken place
Group C Comprising the areas, which are less developed than those at Group B
Group D Comprising the lesser-developed areas of the State not covered under Group A/ Group B/ Group C.
Group D+ Comprising those least developed areas not covered under Group A/Group B/Group C/Group D."
Zones in Maharashtra as classified by the Ministry of Labor
Zone 1 - Comprise of the area falling within the limits of all 'A' and 'B' class Municipal Corporations
Zone II - Comprise of the areas falling within the limits of all 'C' and 'D' class Municipal Corporation and 'A' class of Municipal Councils and Cantonment areas
Zone III- Comprise of all other areas in the state, which are not included in Zone I and Zone II
Thanks
Bijay
From India, Vadodara
Be it a contractor or employer,if the workers are deployed the responsibility of statutory compliance is primary responsibility of employer,under contract, the principal employer will award the work assignment to contractors who have these compliances in place. As regards to Esic or WC aplicability,If the work location is with in the limits of zone1 where esic Facility is available then Esic compliance is must and if the location of work is in zone3 where esic facilities can not be available then WC policy is the min compliance whic is must.Also any INSURANCE COVER which provides better and more benifits and at par with esic can be taken but must have consent/exemptions from the competent authority.
Also Watch out for Zones classification details as under-
"Zones in Maharashtra
The state has been classified in to groups A, B, C, D and D+ according to industrial development.
Group A Comprising the developed areas, viz. Mumbai Metropolitan Region (MMR) and Pune Metropolitan Region (PMR).
Group B Comprising the areas where some development has taken place
Group C Comprising the areas, which are less developed than those at Group B
Group D Comprising the lesser-developed areas of the State not covered under Group A/ Group B/ Group C.
Group D+ Comprising those least developed areas not covered under Group A/Group B/Group C/Group D."
Zones in Maharashtra as classified by the Ministry of Labor
Zone 1 - Comprise of the area falling within the limits of all 'A' and 'B' class Municipal Corporations
Zone II - Comprise of the areas falling within the limits of all 'C' and 'D' class Municipal Corporation and 'A' class of Municipal Councils and Cantonment areas
Zone III- Comprise of all other areas in the state, which are not included in Zone I and Zone II
Thanks
Bijay
From India, Vadodara
Dear Saikumar Can contract labour make an union,?Though they have not completed 240 days. If yes pls give me some refernce book so that i have to submitt the same Deven
From India, Pune
From India, Pune
Dear Deven
A trade union in the context of Trade Unions Act means a trade union of workmen employed in an induxtry in which the said trade union is connencted and workmen interms of sec.2.(g) of T.U Act means all persons employed in trade or industry.Thus Contract labour, being workmen in an industry, can have their union.
B.Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
A trade union in the context of Trade Unions Act means a trade union of workmen employed in an induxtry in which the said trade union is connencted and workmen interms of sec.2.(g) of T.U Act means all persons employed in trade or industry.Thus Contract labour, being workmen in an industry, can have their union.
B.Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
Dear Naresh
1)As Factory Manager is saying correct, If you want to cover your office in shop act, then your premises should be free from Manufacturing activity, & Factory licenece should be cancelled form the said premises. Also it should be informed to factory Inspector. Then you can cover your office in shop act , for this again you have to create shop act Licence for the same.
2) You have not mentioned ,the area /region /State/District/ of your factory , if your place of the factory comes in ESI coverage , then you must compile the ESI provisions, in addition to that you can provide any covergae to your workmen.
ESI cannot replaced by any Act.
I thing this may clear your daughts.
Rgds
Devendra Deshpande.
Manager-HR
From India, Pune
1)As Factory Manager is saying correct, If you want to cover your office in shop act, then your premises should be free from Manufacturing activity, & Factory licenece should be cancelled form the said premises. Also it should be informed to factory Inspector. Then you can cover your office in shop act , for this again you have to create shop act Licence for the same.
2) You have not mentioned ,the area /region /State/District/ of your factory , if your place of the factory comes in ESI coverage , then you must compile the ESI provisions, in addition to that you can provide any covergae to your workmen.
ESI cannot replaced by any Act.
I thing this may clear your daughts.
Rgds
Devendra Deshpande.
Manager-HR
From India, Pune
Dear Naresh
It is a very tricky question whether an office located in the premises of the factory is to be registered under Factories Act or Shops and Establishments Act. In some cases, the head office or an office which does administrative work even if located in the same premises was held as to be covered under teh Shops Act while in other cases, it was held to be covered under Factories Act on the basis of teh 'premises and precincts' principle. However, some Shops Act like the Bombay Shops Establishments Act clearly specified that the Shops Act is applicable only to a shop or comercial establishment located in the premises of teh factory , if it is not connected with the manufacturing process which implies that if it is connected with manufacturing process, the Factories Act becomes applicable to it.Therefore , look into the Shops Act of your state to asceratin whether it contains any such provision.It will help uou to take aprudent decision.
B.Saikumar
HR & labour Law Advisor.
Mumbai
From India, Mumbai
It is a very tricky question whether an office located in the premises of the factory is to be registered under Factories Act or Shops and Establishments Act. In some cases, the head office or an office which does administrative work even if located in the same premises was held as to be covered under teh Shops Act while in other cases, it was held to be covered under Factories Act on the basis of teh 'premises and precincts' principle. However, some Shops Act like the Bombay Shops Establishments Act clearly specified that the Shops Act is applicable only to a shop or comercial establishment located in the premises of teh factory , if it is not connected with the manufacturing process which implies that if it is connected with manufacturing process, the Factories Act becomes applicable to it.Therefore , look into the Shops Act of your state to asceratin whether it contains any such provision.It will help uou to take aprudent decision.
B.Saikumar
HR & labour Law Advisor.
Mumbai
From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Clarification On Haryana Factory License Fee Revision.PDF