Dear Seniors,
I am working as AM - HR in a mid-size IT Company in Gurgaon (Haryana). Last week, a labor officer visited our premises and asked for the labor inspection. He requested various documents related to labor compliance, such as Leave registers, Wages registers (with salary slips and employees' signatures), and Register of deductions. However, we are not maintaining these registers.
I have some queries regarding the same:
1. Is it necessary for an IT company to maintain these documents and registers?
2. My company has been established since 2005, but we are not registered under the Shop and Establishment Act of Punjab and Haryana. Is registration mandatory for every company?
3. Concerning this inspection, we have hired a consultant who is charging around 20K for the settlement, which includes his fees and out-of-pocket expenses. Is this the only way we can settle this inspection? It is impossible for us to prepare data and registers from the beginning of 2005.
Please provide clarification on the same.
Regards,
Parul
From India, Delhi
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2I am working as AM - HR in a mid-size IT Company in Gurgaon (Haryana). Last week, a labor officer visited our premises and asked for the labor inspection. He requested various documents related to labor compliance, such as Leave registers, Wages registers (with salary slips and employees' signatures), and Register of deductions. However, we are not maintaining these registers.
I have some queries regarding the same:
1. Is it necessary for an IT company to maintain these documents and registers?
2. My company has been established since 2005, but we are not registered under the Shop and Establishment Act of Punjab and Haryana. Is registration mandatory for every company?
3. Concerning this inspection, we have hired a consultant who is charging around 20K for the settlement, which includes his fees and out-of-pocket expenses. Is this the only way we can settle this inspection? It is impossible for us to prepare data and registers from the beginning of 2005.
Please provide clarification on the same.
Regards,
Parul
From India, Delhi
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Dear Parul,
You should comply with the law of the land. If the company is not even registered under the Shops & Establishment Act, it means that you are not compliant with the laws. You should manage the labor inspection as ignorance of the law is no plea.
For the future, it will be better to get a compliance audit done by an external consultant and then become compliant so that this kind of problem does not occur in the future. You should impress upon the management that they should invest in being compliant with the law, as the savings they make now will have to be paid as penalties and fines, as well as a loss of goodwill at a later stage, and the loss shall be in multiples of the savings made.
If you wish, we can help you in being compliant with the law to help you avoid such a situation in the future.
Thanks,
Kind Regards,
Avika Kapoor
Vice President - Operations
Website: Kapgrow
From India, New Delhi
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You should comply with the law of the land. If the company is not even registered under the Shops & Establishment Act, it means that you are not compliant with the laws. You should manage the labor inspection as ignorance of the law is no plea.
For the future, it will be better to get a compliance audit done by an external consultant and then become compliant so that this kind of problem does not occur in the future. You should impress upon the management that they should invest in being compliant with the law, as the savings they make now will have to be paid as penalties and fines, as well as a loss of goodwill at a later stage, and the loss shall be in multiples of the savings made.
If you wish, we can help you in being compliant with the law to help you avoid such a situation in the future.
Thanks,
Kind Regards,
Avika Kapoor
Vice President - Operations
Website: Kapgrow
From India, New Delhi
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Hi. Immediately register yourself with Shops & Est Dept. As per the old Act, it is mandatory to maintain manual records in the prescribed form. However, through a special application for exemption, you can be exempt from maintaining manual records. You can then maintain records electronically. Complying with this is extremely important.
Also, which department did this labor officer belong to? Was it Shops & Est Dept, the labor dept, or any other? Accordingly, you will have to approach that department to address and close this issue.
From India, Mumbai
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Also, which department did this labor officer belong to? Was it Shops & Est Dept, the labor dept, or any other? Accordingly, you will have to approach that department to address and close this issue.
From India, Mumbai
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I am based in Mumbai, and the consultants usually charge the same. However, you can ask for quotes from 3-4 consultants and make a decision. There's no need to manually maintain the registers if you have applied for an exemption.
From India, Mumbai
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From India, Mumbai
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Dear Parul,
These are the basic and mandatory compliance requirements i.e. registration under the Shops & Commercial Establishment Act, and maintenance of records under the Act, in addition to compliance with the Payment of Wages Act, Minimum Wages Act, Leaves, and Payment of Bonus Act. If you resolve the issue without adhering to the legal mandates, it may recur. I trust that you are already ensuring legal compliance with all the provisions, so why not maintain the prescribed records? You have the option to seek exemption from maintaining manual registers and transition to computerized ones. Additionally, you can reach out for our assistance in managing these records, registrations, and settlements.
Regards,
P K Sharma
From India, Delhi
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These are the basic and mandatory compliance requirements i.e. registration under the Shops & Commercial Establishment Act, and maintenance of records under the Act, in addition to compliance with the Payment of Wages Act, Minimum Wages Act, Leaves, and Payment of Bonus Act. If you resolve the issue without adhering to the legal mandates, it may recur. I trust that you are already ensuring legal compliance with all the provisions, so why not maintain the prescribed records? You have the option to seek exemption from maintaining manual registers and transition to computerized ones. Additionally, you can reach out for our assistance in managing these records, registrations, and settlements.
Regards,
P K Sharma
From India, Delhi
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Sir(s),
I understand that IT companies do not enjoy any special status to claim exemption from any labor laws as applicable. There are a number of laws governing the labor legislation viz. - EPF & MP Act, The Factories Act, ESI Act, 1948, Contract Labor Act, Shop & Commercial Estt. Act, etc.
The main question arises: which of the labor laws/Acts and rules/regulations framed thereunder are applicable to the IT company of the HR official who started this thread.
Shop & Commercial Estt. Act is only one Act. If using power for the manufacturing process, whether the IT companies are not covered under The Factories Act, ESI Act, EPF & other similar Acts? The number of employees in said company has also not been indicated.
I think the above issues will also arise as and when the officials/Inspectors from other Labor Laws departments will visit the unit for verification of records.
In my opinion, HR officials should firstly see and explore as to which of the Labor Laws are applicable to his unit keeping in view the number of employees, nature of manufacture, etc. To restrict the maintenance of the records and compliance under Shop & Commercial Establishment Act will, in my opinion, be of no use if it is found later on that the said IT company is coverable under The Factories Act and other related legislations as mentioned above.
From India, Noida
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I understand that IT companies do not enjoy any special status to claim exemption from any labor laws as applicable. There are a number of laws governing the labor legislation viz. - EPF & MP Act, The Factories Act, ESI Act, 1948, Contract Labor Act, Shop & Commercial Estt. Act, etc.
The main question arises: which of the labor laws/Acts and rules/regulations framed thereunder are applicable to the IT company of the HR official who started this thread.
Shop & Commercial Estt. Act is only one Act. If using power for the manufacturing process, whether the IT companies are not covered under The Factories Act, ESI Act, EPF & other similar Acts? The number of employees in said company has also not been indicated.
I think the above issues will also arise as and when the officials/Inspectors from other Labor Laws departments will visit the unit for verification of records.
In my opinion, HR officials should firstly see and explore as to which of the Labor Laws are applicable to his unit keeping in view the number of employees, nature of manufacture, etc. To restrict the maintenance of the records and compliance under Shop & Commercial Establishment Act will, in my opinion, be of no use if it is found later on that the said IT company is coverable under The Factories Act and other related legislations as mentioned above.
From India, Noida
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Dear all,
Thank you for clearing my doubts. My first step will be getting registered under the Shop & EST Act. We have 25 employees in the company. We already have PF registration, and we are submitting LWF annually. Please let me know what other labor compliance is applicable to my company.
From India, Delhi
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Thank you for clearing my doubts. My first step will be getting registered under the Shop & EST Act. We have 25 employees in the company. We already have PF registration, and we are submitting LWF annually. Please let me know what other labor compliance is applicable to my company.
From India, Delhi
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Hi,
You mentioned that you have obtained PF Registration and LWF registration. I am sure you are already registered under the Shop and Commercial Establishment Act. You need to request the Registration Certificate under the Shop and Commercial Establishment Act from your management and ensure its timely renewal. Additionally, records and registers such as the wage register as per the Minimum Wages Act, Muster Roll, Leave Register, Bonus Register, Bonus Annual Return, and a copy of the salary slip as per the wage register need to be maintained. I recommend consulting your labor law consultant as they will assist you with these matters.
Regards, Dilip Nandanwar For Vidarbha Industries (Labor Law Auditing, Consulting, Statutory/Legal Compliance, Payroll Outsourcing & Management, Manpower/Staffing, and Government/Railway Contracting) Navi Mumbai Branch Office - LGF-69, Sanskritik Sankul, Zansi Rani Square, Sitabuildi, Nagpur. Mail Id - vidarbhaind@ymail.com Phone: +91-86555 76111
From India, Mumbai
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You mentioned that you have obtained PF Registration and LWF registration. I am sure you are already registered under the Shop and Commercial Establishment Act. You need to request the Registration Certificate under the Shop and Commercial Establishment Act from your management and ensure its timely renewal. Additionally, records and registers such as the wage register as per the Minimum Wages Act, Muster Roll, Leave Register, Bonus Register, Bonus Annual Return, and a copy of the salary slip as per the wage register need to be maintained. I recommend consulting your labor law consultant as they will assist you with these matters.
Regards, Dilip Nandanwar For Vidarbha Industries (Labor Law Auditing, Consulting, Statutory/Legal Compliance, Payroll Outsourcing & Management, Manpower/Staffing, and Government/Railway Contracting) Navi Mumbai Branch Office - LGF-69, Sanskritik Sankul, Zansi Rani Square, Sitabuildi, Nagpur. Mail Id - vidarbhaind@ymail.com Phone: +91-86555 76111
From India, Mumbai
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