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Dear Dee,
Understanding of statutory compliance, though neglected, is important to know. The reason is non compliance leads to penal action.
First thing is to find out whether the organization falls in the purview of Factories act (mostly manufacturing companies) or Shop & establishment act (ITES companies).
Once you have ascertained this, go through the major acts like PF, Gratuity, Bonus, ESI, Contract labour etc, (in fact these are enough).
PF - You must be aware that the employer is obliged to deposit PF on a monthly basis; also the employer is required to submit monthly returns like form 5 and 10 pertaining to member joining or leaving. Then there is the annual return.
Gratuity - The act requires the employer to pay gratuity to all employee completing 5 years but a few know that an important thing is gratuity nomination form that the employee must fill at the time of joining (it saves a lot of trouble in case of the death of the employee)
Bonus - Now that the limit has been jacked up to 10000/- you have more employees coming in the coverage for bonus. If you are paying bonus then register for bonus is to be maintained.
ESI - All employees drawing less than 10001 are covered under ESI act and are to be insured under the act. The contribution (employee 1.75% and employer 4.75%) is to be deposited monthly. A six monthly return is to be complied also a monthly return with form 3 and 1 (nomination and declaration) is to be submitted with the ESI department every month.
Contract act - If you are engaging any contract labour (security cafeteria, house keeping etc), you will have to register your organization under the act and comply with the provisions.
You may choose to out source the same to a consultant but must make sure a timely compliance else occupier or the manager of the establishment will have to face penal action in no case the consultant will be held liable for non compliance.
Hope this will of help
Best wishes,
Sunil Joshi
PGCHRM - XLRI
From United States, Bedford
Understanding of statutory compliance, though neglected, is important to know. The reason is non compliance leads to penal action.
First thing is to find out whether the organization falls in the purview of Factories act (mostly manufacturing companies) or Shop & establishment act (ITES companies).
Once you have ascertained this, go through the major acts like PF, Gratuity, Bonus, ESI, Contract labour etc, (in fact these are enough).
PF - You must be aware that the employer is obliged to deposit PF on a monthly basis; also the employer is required to submit monthly returns like form 5 and 10 pertaining to member joining or leaving. Then there is the annual return.
Gratuity - The act requires the employer to pay gratuity to all employee completing 5 years but a few know that an important thing is gratuity nomination form that the employee must fill at the time of joining (it saves a lot of trouble in case of the death of the employee)
Bonus - Now that the limit has been jacked up to 10000/- you have more employees coming in the coverage for bonus. If you are paying bonus then register for bonus is to be maintained.
ESI - All employees drawing less than 10001 are covered under ESI act and are to be insured under the act. The contribution (employee 1.75% and employer 4.75%) is to be deposited monthly. A six monthly return is to be complied also a monthly return with form 3 and 1 (nomination and declaration) is to be submitted with the ESI department every month.
Contract act - If you are engaging any contract labour (security cafeteria, house keeping etc), you will have to register your organization under the act and comply with the provisions.
You may choose to out source the same to a consultant but must make sure a timely compliance else occupier or the manager of the establishment will have to face penal action in no case the consultant will be held liable for non compliance.
Hope this will of help
Best wishes,
Sunil Joshi
PGCHRM - XLRI
From United States, Bedford
Hi Mr.Sunil josi My name is kiran iam working as HRD-Executive,can u pls send me some suggestions for making Factories License forms and covering letter. Thanking you Kiran
Dear,
Legal compliance is important as it directly attracts legal action againts Compnay Owner, Director or Occupier. Hence, it becomes necessary to comply the provisions of applicable acts in stipulated time. . Here is an xls file which consists of the nature of compliance which is to be done under various acts. The information also covers date/period of compliance. Hope it will b helpful to you.
Thanking you
Sudhakar Bhadane
Sr Executive - HR
Nashik - 9850339911
Legal compliance is important as it directly attracts legal action againts Compnay Owner, Director or Occupier. Hence, it becomes necessary to comply the provisions of applicable acts in stipulated time. . Here is an xls file which consists of the nature of compliance which is to be done under various acts. The information also covers date/period of compliance. Hope it will b helpful to you.
Thanking you
Sudhakar Bhadane
Sr Executive - HR
Nashik - 9850339911
Pl find attached Xls., which contains IF details of maintaining records, registers and returns in TN
From India, Madras
From India, Madras
Hi Deeshe You can download all statutory complaince from citehr itself. Type the same in download search. Feel free in case any difficulty Chetan
From India, Mumbai
From India, Mumbai
Thanks for the information Sir. It was a great help.
It would be nice if you could give me on some information on the case if a company says it is a loss making enity and does not file a retun for bonus. What kind of documents are required in this situation from compliance prespective?
regards
Lc
From India, Delhi
It would be nice if you could give me on some information on the case if a company says it is a loss making enity and does not file a retun for bonus. What kind of documents are required in this situation from compliance prespective?
regards
Lc
From India, Delhi
Dear Legal Compliance, even Loss making Units are liable to pay Minimum Bonus @8.33%. Payment of Minimum Bonus before due date & Filing of Corresponding Return will amount to "Compliance"
From India, New Delhi
From India, New Delhi
Bonus - Now that the limit has been jacked up to 10000/- - sir please share the memo copy of this.
ESI - All employees drawing less than 10001 are covered under ESI act - is it 10000 or 21000
A six monthly return is to be complied also a monthly return with form 3 and 1 (nomination and declaration) is to be submitted with the ESI department every month. - no memo for this we have.
From India, Bharatpur
ESI - All employees drawing less than 10001 are covered under ESI act - is it 10000 or 21000
A six monthly return is to be complied also a monthly return with form 3 and 1 (nomination and declaration) is to be submitted with the ESI department every month. - no memo for this we have.
From India, Bharatpur
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