My wife runs a small garment manufacturing unit in Delhi. She has some employees on her payroll, but most of the workforce comprises piece-rate tailors who work on a project-to-project basis and leave when a particular style is completed.
Our local labor inspector is asking for a 25000 rupee bribe, threatening to issue a challan and take legal action against her.
Kindly suggest.
Regards,
Rizwan Ahmad
From India, New Delhi
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Our local labor inspector is asking for a 25000 rupee bribe, threatening to issue a challan and take legal action against her.
Kindly suggest.
Regards,
Rizwan Ahmad
From India, New Delhi
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Hi Rizwan,
How many people are working in the garment factory?
It has the following applicability:
It applies to factories covered under the Factories Act, 1948. The industries in which ten (10) or more than ten workers are employed on any day of the preceding twelve months and are engaged in a manufacturing process being carried out with the aid of power or twenty or more than twenty workers are employed in a manufacturing process being carried out without the aid of power are covered under the provisions of this Act.
So if the number of people is less than 10, then it does not apply, so you need not worry.
Regarding other things, you need to keep in mind:
1. Are you paying them minimum wages? The Factories Act has provisions for piece wages, so there should not be a problem.
2. Are you taking care of the following under the Factories Act:
Health - The work conditions should not be hazardous.
Safety - Enough safety provisions should be there.
Welfare facilities - Like drinking water, a creche for female workers, etc.
Working hours - 8 hours in a day with overtime not exceeding 10.5 hours.
Employment of young persons - Not employing anybody below 18 years.
Annual Leave with wages, etc. - 1 leave for every 20 days worked.
If you are maintaining all records and returns, then there should not be an issue.
You may file RTI to the labor department in this regard too.
From India, Mumbai
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88How many people are working in the garment factory?
It has the following applicability:
It applies to factories covered under the Factories Act, 1948. The industries in which ten (10) or more than ten workers are employed on any day of the preceding twelve months and are engaged in a manufacturing process being carried out with the aid of power or twenty or more than twenty workers are employed in a manufacturing process being carried out without the aid of power are covered under the provisions of this Act.
So if the number of people is less than 10, then it does not apply, so you need not worry.
Regarding other things, you need to keep in mind:
1. Are you paying them minimum wages? The Factories Act has provisions for piece wages, so there should not be a problem.
2. Are you taking care of the following under the Factories Act:
Health - The work conditions should not be hazardous.
Safety - Enough safety provisions should be there.
Welfare facilities - Like drinking water, a creche for female workers, etc.
Working hours - 8 hours in a day with overtime not exceeding 10.5 hours.
Employment of young persons - Not employing anybody below 18 years.
Annual Leave with wages, etc. - 1 leave for every 20 days worked.
If you are maintaining all records and returns, then there should not be an issue.
You may file RTI to the labor department in this regard too.
From India, Mumbai
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While I agree with all that Govind said below, RTI is not going to make any difference. People have this myth that RTI will resolve all problems. No, it is going to give you nothing in this case.
On to the original problem, in addition to what Govind asked, I would like to know - what is he threatening to do? What are the non-compliances that he is going to investigate? What are the requirements that you have not complied with? Once you give the details, we may be able to help you.
From India, Mumbai
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On to the original problem, in addition to what Govind asked, I would like to know - what is he threatening to do? What are the non-compliances that he is going to investigate? What are the requirements that you have not complied with? Once you give the details, we may be able to help you.
From India, Mumbai
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if he is asking for bribe without guiding better get him trapped by anti corruption of police
From India, Hyderabad
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From India, Hyderabad
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Hi!
You received a beautiful appreciation from Shri Govind. However, it is always better to implement welfare measures. Why not consider providing group insurance for the employees? This will benefit you in the long run. Such welfare measures certainly yield good dividends and contribute to good social measures.
Bribe is not the question; bribing is the question. Engaging in bribery leads us to do bad things.
With regards,
From India, Arcot
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You received a beautiful appreciation from Shri Govind. However, it is always better to implement welfare measures. Why not consider providing group insurance for the employees? This will benefit you in the long run. Such welfare measures certainly yield good dividends and contribute to good social measures.
Bribe is not the question; bribing is the question. Engaging in bribery leads us to do bad things.
With regards,
From India, Arcot
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Hi Rizwan,
Please contact me on 86555 76111 or write to me. No need to pay the fees, don't worry. I would like to understand how the Labour Inspector is related to the PF Act, considering that the Labour Department and PF Authority are distinct entities.
Regards,
Dilip Nandanwar
(Labour Law Consulting, Auditing, Payroll Management, and Outsourcing)
Navi Mumbai
Branch Office - Nagpur
86555 76111
vidarbhaind@ymail.com
From India, Mumbai
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Please contact me on 86555 76111 or write to me. No need to pay the fees, don't worry. I would like to understand how the Labour Inspector is related to the PF Act, considering that the Labour Department and PF Authority are distinct entities.
Regards,
Dilip Nandanwar
(Labour Law Consulting, Auditing, Payroll Management, and Outsourcing)
Navi Mumbai
Branch Office - Nagpur
86555 76111
vidarbhaind@ymail.com
From India, Mumbai
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Greetings Rizwan,
As Mr. Govind has pointed out, if you are on the right side of the law, then there will be no cause for concern. In my opinion, the inspector has observed some lapses in your operation, and that is the reason why he is threatening.
Consult a lawyer and explain to him the observations made by the inspector as you may not be in a position to share such information in a public domain like this.
You are talking about a particular style being part of a project, but the duration of the project is not mentioned. If it exceeds 240 days, and if you are covered under the provisions of the Factories Act, then these employees need to be considered for conferring permanent status.
If the women employees are more than 30, then you need to run a creche.
You need to pay double wages for overtime work performed.
The space available for workmen movement should be as per specifications in the Factories Act. Generally, in small textile units, this is violated.
There needs to be proper ventilation and lighting.
The women workers cannot be made to work beyond stipulated working hours without obtaining prior permission from the Government.
Like these, there are several provisions that could have eluded your attention. This is the reason why you need to consult a lawyer. The bribe sought by the inspector could be much more than a lawyer's fee. It would be prudent on your part to correct the lapses and face the labor inspector's charges with legal support rather than ducking away from it. The course correction will ensure that you are on the right side of the law and hence you may not face problems in the future.
Regards
From India, Madras
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As Mr. Govind has pointed out, if you are on the right side of the law, then there will be no cause for concern. In my opinion, the inspector has observed some lapses in your operation, and that is the reason why he is threatening.
Consult a lawyer and explain to him the observations made by the inspector as you may not be in a position to share such information in a public domain like this.
You are talking about a particular style being part of a project, but the duration of the project is not mentioned. If it exceeds 240 days, and if you are covered under the provisions of the Factories Act, then these employees need to be considered for conferring permanent status.
If the women employees are more than 30, then you need to run a creche.
You need to pay double wages for overtime work performed.
The space available for workmen movement should be as per specifications in the Factories Act. Generally, in small textile units, this is violated.
There needs to be proper ventilation and lighting.
The women workers cannot be made to work beyond stipulated working hours without obtaining prior permission from the Government.
Like these, there are several provisions that could have eluded your attention. This is the reason why you need to consult a lawyer. The bribe sought by the inspector could be much more than a lawyer's fee. It would be prudent on your part to correct the lapses and face the labor inspector's charges with legal support rather than ducking away from it. The course correction will ensure that you are on the right side of the law and hence you may not face problems in the future.
Regards
From India, Madras
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Dear friends,
All said and done, a doubt would remain in the minds of Mr. Rizwan as to how the Labour Inspector could harass when "most of the work" is got done through the so-called 'piece rate' route. It's an illusion that one carries if the job is done through piece rate they can get rid of labour act compliances which would ultimately prove to be a wrong notion. Micro, small entrepreneurs should be aware and realize that once a premises like a factory exists and workers are carrying out a process considered to be a factory, all the related provisions of the Act apply and no escape through the piece rate methods for the simple reason that Acts, rules are clear about this aspect. The piece rate method is adopted generally to ensure optimum productivity is extracted from the workers, cut down costs, to meet deadlines for supply schedule, and the entrepreneur need not pay for OBs under the 'time rate' system. It is presumed that Mr. Rizwan might try to avoid PF/ESI/bonus/gratuity/leave and other labour-related costs, proper maintenance of records, registers, compliance of various stipulations. But still, nobody can prevent the jurisdictional labour officers inspecting a workplace, raise violations, issue show cause notices, impose penalties, and so on. It's up to the owners to defend themselves based on facts & circumstances within the framework of law with proper evidence/justifications. We have to accept that while it's also true that despite prevalent elaborate labour legislations in the country workers are exploited in many segments which cannot be justified by saying the organized sector workers enjoy everything and more also.
The country is used to bribing every now and then, and there is growing awareness of this menace though many take it for granted as a part of normalcy. We also must accept the fact that "so long as bribe givers exist, bribe takers also co-exist." Stop, renounce giving, takers should be branded as anti-social elements, and such elements should be treated as outcasts, a "social reformation" a much-needed of the day which the future India awaits eagerly. Anything seen on the horizon?
From India, Bangalore
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All said and done, a doubt would remain in the minds of Mr. Rizwan as to how the Labour Inspector could harass when "most of the work" is got done through the so-called 'piece rate' route. It's an illusion that one carries if the job is done through piece rate they can get rid of labour act compliances which would ultimately prove to be a wrong notion. Micro, small entrepreneurs should be aware and realize that once a premises like a factory exists and workers are carrying out a process considered to be a factory, all the related provisions of the Act apply and no escape through the piece rate methods for the simple reason that Acts, rules are clear about this aspect. The piece rate method is adopted generally to ensure optimum productivity is extracted from the workers, cut down costs, to meet deadlines for supply schedule, and the entrepreneur need not pay for OBs under the 'time rate' system. It is presumed that Mr. Rizwan might try to avoid PF/ESI/bonus/gratuity/leave and other labour-related costs, proper maintenance of records, registers, compliance of various stipulations. But still, nobody can prevent the jurisdictional labour officers inspecting a workplace, raise violations, issue show cause notices, impose penalties, and so on. It's up to the owners to defend themselves based on facts & circumstances within the framework of law with proper evidence/justifications. We have to accept that while it's also true that despite prevalent elaborate labour legislations in the country workers are exploited in many segments which cannot be justified by saying the organized sector workers enjoy everything and more also.
The country is used to bribing every now and then, and there is growing awareness of this menace though many take it for granted as a part of normalcy. We also must accept the fact that "so long as bribe givers exist, bribe takers also co-exist." Stop, renounce giving, takers should be branded as anti-social elements, and such elements should be treated as outcasts, a "social reformation" a much-needed of the day which the future India awaits eagerly. Anything seen on the horizon?
From India, Bangalore
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The year 2013 witnessed a lot of changes. At the end of the day, we appreciate a lot of new things in our capital. We are enjoying a new formation and a new dawn. Of course, the rays of the sun have never changed, and it saw new names at Delhi. AAP, the newly formed government, enjoyed the new leaf, a new avatar. All the government servants have been put into a burn; they are corrupted is the slogan.
The Jal Board, in its mainstream, targeted the extreme end with cold, shivering servants transferred. Like a football, they are intentionally or unintentionally rolled on the ground. The players are different by the time the newly formed AAP, the Chief Minister Shri Arvind Kejriwal, and its members.
Let us think it over. What did the government servants do? Are they the authorities playing the game or are other political parties, people, self-interested ugly people the culprits? Bribing is the most heinous crime rather than the authorities who get bribed. Unless you are ready to pay to get your work done, what else are the authorities going to do? In the case of private industries, bribery is at its highest level with different names - commission, gain, interest of the customer, unregulated supply of electronic goods, selling of gas cylinders at high costs in the black market, cinema on CDs intentionally manipulating the picture, liquor from known and unknown resources, selling of liquor by the authorities by purchasing from the canteen to the public at higher cost keeping a margin, medicines at what price? Thus, first, let us say bribing is heinous and not the bribed. The most is the casteism-based bribe, sanctioning of loans, house allotment, land purchase, education and scholarships, organ transplants, employment. What have we left to speak of?
First, let us stop bribing.
In case there is deliberate avoidance from welfare measures to the employee, it is a heinous crime.
From India, Arcot
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The Jal Board, in its mainstream, targeted the extreme end with cold, shivering servants transferred. Like a football, they are intentionally or unintentionally rolled on the ground. The players are different by the time the newly formed AAP, the Chief Minister Shri Arvind Kejriwal, and its members.
Let us think it over. What did the government servants do? Are they the authorities playing the game or are other political parties, people, self-interested ugly people the culprits? Bribing is the most heinous crime rather than the authorities who get bribed. Unless you are ready to pay to get your work done, what else are the authorities going to do? In the case of private industries, bribery is at its highest level with different names - commission, gain, interest of the customer, unregulated supply of electronic goods, selling of gas cylinders at high costs in the black market, cinema on CDs intentionally manipulating the picture, liquor from known and unknown resources, selling of liquor by the authorities by purchasing from the canteen to the public at higher cost keeping a margin, medicines at what price? Thus, first, let us say bribing is heinous and not the bribed. The most is the casteism-based bribe, sanctioning of loans, house allotment, land purchase, education and scholarships, organ transplants, employment. What have we left to speak of?
First, let us stop bribing.
In case there is deliberate avoidance from welfare measures to the employee, it is a heinous crime.
From India, Arcot
Acknowledge(0)Amend(0)
Dear Rizwan Ahmad,
Since you have mentioned that your wife runs a small garment manufacturing unit in Delhi and the local labor inspector is asking for money from your wife, fortunately, the solution to such problems is likely to see the light of the day. Sh. Gopinath has rightly mentioned in his mail that corruption is rampant in almost all the departments of the Government of NCT Delhi, and we need to fight it out collectively. In continuation of his mail, I would like to inform you that Sh. Arvind Kejriwal, the CM of Delhi, has recently launched a helpline to nab corrupt officials. The anti-corruption helpline number is 011-27357169, which will be open from 8 AM to 10 PM on all days where you can lodge a complaint.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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Since you have mentioned that your wife runs a small garment manufacturing unit in Delhi and the local labor inspector is asking for money from your wife, fortunately, the solution to such problems is likely to see the light of the day. Sh. Gopinath has rightly mentioned in his mail that corruption is rampant in almost all the departments of the Government of NCT Delhi, and we need to fight it out collectively. In continuation of his mail, I would like to inform you that Sh. Arvind Kejriwal, the CM of Delhi, has recently launched a helpline to nab corrupt officials. The anti-corruption helpline number is 011-27357169, which will be open from 8 AM to 10 PM on all days where you can lodge a complaint.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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