Employment laws compliance & advisory service providing opportunities

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GOLDMINE OF OPPORTUNITIES IN EMPLOYMENT LAWS AND
ADVISORY SERVICES

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About the Author:
Dr. Rajkumar Adukia left no stone unturned during his career span expanding to
more than 39 years. Having graduated from Sydenham College of Commerce &
Economics in 1980 as 5th rank holder in Bombay University and he has also
received a Gold Medal for highest marks in Accountancy & Auditing. He
cleared the Chartered Accountancy Examination with 1st Rank in Intermediate
and 6th
Rank in Final. He also secured 3rd Rank in the Final Cost Accountancy
Course. He has been awarded G.P. Kapadia prize for best student of the year
1981. He also holds a Degree in law, PhD in Corporate Governance in Mutual
Funds, MBA, Diploma in IFRS (UK), and Diploma in Labour law and Labour
welfare, Diploma in IPR, Diploma in Criminology.
His mantra is to provide services to clients that help them in building better and
sustainable businesses. He is a knowledge seeker and believes that knowledge
needs to be ingrained and used for the benefit of society at large.

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LEVERAGE YOUR KNOWLEDGE FOR NATION BUIDLING
Every Enterprises, as they are responsible for employment generation, GDP
contribution and improvisation of industrial standards, there role is considered
vital in the development of an economy. However the success of an enterprise
largely depends upon efficiency of workforce, for this reason it is essential for
an employer to protect the interest of each employee within his organisation. As
no asset of an organisation is as valuable as its employees.
Additionally there exists multiple employment laws that confered certain duties
and responsibilities upon the employer, who is obligated to follow the same and
ensured a cordial employment relations.
The author believes that the full package guide providing complaince and
advisory service for such enterprises/organisation is crucial as it will make the
organisation statutory compliant, and will dynamic businesses to grow.
Since buisnesses are generally concerned about achieving their goals, they tend
to neglect the signficance statutory compliance, at this point they will be
needing a professional guidance who will ensure that the company is
safeguarded by ensuring that the employees are well taken care of resulting in
greater efficiency.
It is also important that this compliance commitment should not looked upon
merely to save from penal consequence, instead they serves as powerful tool
that ensures a stable progress and enhances the goodwill of organization.
The wisdom of professional in the capacity of mentors will inspire growth of
organisation subsequently leading it towards the path of success that further
contribute in strentghning nation’s economy.

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IGNITE YOUR UNLIMITED GOALS WITHOUT ANY BOUNDARY
AND SHARE YOUR EXPERTISE
If success is an engine then passion is fuel to that engine. Have you ever
wondered how successful people are better able to stick to their plans and
achieve even more success in their life? Well the mantra is
PASSION- START- CONSISTENCY-SHARING THE EXPERTISE-
GROW WITH ALL
As we have said earlier passion tends to drive success, mere passion will not
help to achieve everything you want if you don’t start.
“Everything is created twice, first in the mind than in reality”
 Robin Sharma, The Monk Who Sold His
Ferrari: A Fable About Fulfilling Your
Dreams And Reaching Your Destiny
There is no good time to start than now, things will happen the way you want
them to happen only if you start working on it.
Mere saying that “I Want” won’t let it happen you need to set your goals and
remember there is no limit to your goals. Additionally set goals that motivate
you, meaning such goals that make you happy, that are important to you.
It is equally important that you are committed to your goal, to maximize the
likelihood of success. To make sure this write down all your goals and why they
are important to you this will helps you to refresh again whenever you will lose
confidence in your ability to make it happen.

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They say the setting goal is much simpler than being consistent on it, perhaps
the power of consistency may be the only factor that separates successful and
unsuccessful people. Successful people are successful because they chose to be
consistent with their goals, actions, and passion. Remember there is no shortcut
to hard work.
If you make it this far let us now discuss how to share your knowledge.
See having knowledge and expertise is one thing and sharing them among
fellow aspirants is another thing. When you share your knowledge it helps to
deepen your knowledge and engrains what you know.
Be A Leader- Stand Up – Be Vocal About What You Have To Offer
The legendary Greek Philosopher “Aristotle” once said- “Man is by very nature
a social animal; Society is something that precedes the individual.”
Therefore if we know something it becomes our duty to reach out as success is
not just about achieving your goal but to inspire others. We are blessed to be
born in the internet age where we can meet 1000s of people on a single digital
platform. It helps us to reach out to society that needs our services.
Powerful social media tools such as Facebook, Linked-in, Gmail, Youtube,
Blogs websites, Twitter, What’s app, Instagram, e- articles, etc. allows us to
share our knowledge and expertise and helps connecting people even though
they are living miles apart.
Collaborating and knowledge sharing:
The Internet has been the single biggest achievement of humans in the last 20
years that has removed almost all communication barriers. Social media apps
have emerged as collaborating and knowledge-sharing tools that permit

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individuals to join a community share and collect relevant knowledge. The
Facebook group can join 6000 groups, similarly, a person can send over 2000
emails daily, and professional expertise tools such as linked in allows you to be
part of 100s of the group. Additionally, a certain platform such as Twitter,
blogs, podcasts helps to put our viewpoints.
Podcast power:
Although there are lots of tools available across the internet for knowledge
sharing, audio content is more digestible and absorbable, than is possible
through the podcast.
For whom podcast is beneficial:
Consultant, Advisors, Motivational coach, experts- podcast allows such
professionals who have the desire to motivate others and possess valuable
knowledge and expertise that they can share with society. Not only this will
benefit the end-user but their experience will add to their learning.
You may be a legal professional, or a doctor, or a sports person, and there is no
code of ethics of profession that will debar you from your knowledge sharing. A
doctor will share his health tips, a sportsperson may share his fitness tips and a
lawyer may share his knowledge for general legal awareness.
Before the digital age, book writing, news articles were such few channels of
knowledge sharing, although these are equally important in the present age,
with little technological advancement you will reach your fellow learners
perhaps much faster.
We take this opportunity to invite the knowledge-sharing hub as we feel it is our
prime duty to share what we know with society. Let us become members and
address the community which needs our services.

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At this juncture, we find it apt to remember English Historian and Geologist
Charles Darwin’s famous quote
“In the long history of humankind those who learned to collaborate and
improvise most effectively have prevailed.”

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1. Introduction:
The employment laws play a significant role in work environment. Our
constitution recognizes the right to livelihood as a feature of right to life and
thereby covered under the wide range of fundamental right. Such employment
laws are proof that the services of the employee are valued in that respective
organization they are working.
While business planning and executing the same are crucial for the
success of business, but protecting the interest of your employee and
acknowledging their contribution in the success path of business is equally
important. The employment/labour laws are enacted with object of protecting
interest of employees and conferring employer with certain duties and
responsibilities and ultimately maintain cordial relationship between employer
and his employees.
The employment laws in India consists of different acts enacted by the
government and monitor through nodal ministry namely the Ministry of Labour
and Employment and four new labour codes enacted recently although this
codes are yet to be implemented.

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2. List of Central Labour Laws under M/o Labour & Employment
1. The Minimum Wages Act, 1948
2. The Payment of Wages Act, 1936
3. The Payment of Bonus Act, 1965
4. The Equal Remuneration Act, 1976
5. The Trade Unions Act, 1926
6. The Industrial Employment (Standing Orders) Act, 1946.
7. The Industrial Disputes Act, 1947
8. The Weekly Holidays Act, 1942
9. The Factories Act, 1948
10.The Plantation Labour Act, 1951
11.The Mines Act, 1952
12.The Building and Other Constructions Workers’ (Regulation of
Employment and Conditions of Service) Act, 1996
13.The Motor Transport Workers Act, 1961
14.The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
15.The Contract Labour (Regulation and Abolition) Act, 1970.
16.The Bonded Labour System (Abolition) Act, 1976
17.The Sales Promotion Employees (Conditions of Service) Act, 1976
18.The Inter-State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act, 1979.
19.The Cine Workers and Cinema Theatre Workers (Regulation of
Employment) Act, 1981
20.The Dock Workers (Safety, Health and Welfare) Act, 1986
21.The Child Labour (Prohibition and Regulation) Act, 1986
22.The Working Journalists and Other Newspapers Employees
(Conditions of Service) and Miscellaneous Provisions Act, 1955

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23.The Working Journalists (Fixation of rates of Wages) Act, 1958
24.The Employees’ Compensation Act, 1923
25.The Employees’ Provident Funds and Miscellaneous Provisions Act,
1952
26.The Employees’ State Insurance Act, 1948
27.The Maternity Benefit Act, 1961
28.The Payment of Gratuity Act, 1972
29.The Unorganized Workers’ Social Security Act, 2008
30.The Building and Other Construction Workers Cess Act, 1996
31.The Mica Mines Labour Welfare Fund Act, 1946
32.The Cine Workers Welfare (Cess) Act, 1981
33.The Cine Workers Welfare Fund Act, 1981
34.The Limestone and Dolomite Mines Labour Welfare Fund Act, 1972
35.The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines
Labour Welfare (Cess) Act, 1976
36.The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines
Labor Welfare Fund Act, 1976
37.The Beedi Workers Welfare Cess Act, 1976
38.The Beedi Workers Welfare Fund Act, 1976
39.The Labour Laws (Exemption from Furnishing Returns and
Maintaining Registers by Certain Establishments) Act, 1988
40.The Employment Exchange (Compulsory Notification of Vacancies)
Act, 1959
3. List of new labour law codes:
1. The Code on Wages, 2019
a. The Code on Wages (Central Advisory Board) Rules, 2021
2. The Occupational Safety, Health and Working Conditions Code, 2020
3. The Code on Social Security, 2020
4. The Industrial Relations Code, 2020

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The four labour codes as above are intended to replace almost 29 existing laws
thereby simplifying and modernizing the labour regulations. A well compliance
of regulatory provision is seen as an indicator of ease of doing business which is
directly effectuating the growth of nation. Therefore it is crucial for an
organization to be aware of all labour related laws and timely complying with
the same. In this journey they surely be needing assistance of specialists who is
master in almost every sphere of the corporate functions.
This specialist can provide their excellent services to all forms of organization
especially handling compliance work and giving crucial advises driving the
growth of business. As the profession of chartered accountancy is well known
for smooth knowledge of all regulatory mechanism, procedural aspect, financial
handling, this professionals meaning the Chartered Accountant are better fitted
for this role.

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4. LABOUR REFORMS IN INDIA
 The central government proposes to replace 29 existing labour laws with
four Codes. The objective is to simplify and modernise labour regulation.
 The major challenge in labour reforms is to facilitate employment growth
while protecting workers’ rights. Key debates relate to the coverage of
small firms, deciding thresholds for prior permission for retrenchment,
strengthening labour enforcement, allowing flexible forms of labour, and
promoting collective bargaining.
 Further, with the passage of time, labour laws need an overhaul to ensure
simplification and updation, along with provisions which can capture the
needs of emerging forms of labour (e.g., gig work). This note discusses
these challenges and the approaches taken by the four Codes.
 Coverage: Most labour laws apply to establishments over a certain size
(typically 10 or above). Size-based thresholds may help firms in reducing
compliance burden. However, one could argue that basic protections
related to wages, social security, and working conditions should apply to
all establishments. Certain Codes retain such size-based thresholds.
 Retrenchment: Establishments hiring 100 or more workers need
government permission for closure, layoffs or retrenchments. It has been
argued that this has created an exit barrier for firms and affected their
ability to adjust workforce to production demands. The Industrial
Relations Code raises this to 300, and allows the government to further
increase this limit by notification.
 Labour enforcement: Multiplicity of labour laws has resulted in distinct
compliances, increasing the compliance burden on firms. On the other
hand, the labour enforcement machinery has been ineffective because of
poor enforcement, inadequate penalties and rent-seeking behaviour of
inspectors. The Codes address some of these aspects.

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 Contract labour: Labour compliances and economic considerations
have resulted in increased use of contract labour. However, contract
labour have been denied basic protections such as assured wages. The
Codes do not address these concerns fully. However, the Industrial
Relations Code introduces a new form of short-term labour – fixed term
employment.
 Trade Unions: There are several registered trade unions but no criteria
to ‘recognise’ unions which can formally negotiate with employers. The
Industrial Relations Code creates provisions for recognition of unions.
 Simplification and updation: The Codes simplify labour laws to a large
extent but fall short in some respects. Further, the Code on Social
Security creates enabling provisions to notify schemes for ‘gig’ and
‘platform’ workers; however, there is a lack of clarity in these definitions.
 Delegated Legislation: The Codes leave several key aspects, such as
the applicability of social security schemes, and health and safety
standards, to rule-making. The question is whether these questions
should be determined by the legislature or be delegated to the
government.
Simplification of labour laws
 The 2nd
National Commission on Labour (NCL) recommended
consolidation of central labour laws. It observed that there are numerous
labour laws, both at the centre and in states. Further, labour laws have
been added in a piecemeal manner, which has resulted in these laws being
ad-hoc, complicated, mutually inconsistent with varying definitions, and
containing outdated clauses.2
For example, there are multiple laws each
on wages, industrial safety, industrial relations, and social security; some
of these laws cater to different categories of workers, such as contract
labour and migrant workers, and others are focused on protection of

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workers in specific industries, such as cine workers, construction
workers, sales promotion employees, and journalists. Further, several
laws have differing definitions of common terms such as “appropriate
government”, “worker”, “employee”, “establishment”, and “wages”,
resulting in varied interpretation. Also, some laws contain archaic
provisions and detailed instructions (e.g, the Factories Act, 1948 contains
provisions for maintaining spittoons and frequency of white-washing
walls).
 The Commission emphasised the need to simplify and consolidate labour
laws for the sake of transparency, and uniformity in definitions and
approach. Since various labour laws apply to different categories of
employees and across various thresholds, their consolidation would also
allow for greater coverage of labour. Following the recommendations of
NCL, the four Codes on wages, industrial relations, social security, and
occupational safety were introduced in Parliament.
 While the Codes consolidate and simplify existing laws to some extent,
they fall short in some respects. For example, the Codes on occupational
safety and social security continue to retain distinct provisions of each of
the laws that these Codes subsume. For example, while the Occupational
Safety Code contains provisions on leaves for all employees, it continues
to retain additional leave entitlements for sales promotion employees (e.g.
earned medical leave for 1/18th of time on duty). Similarly, while the
Codes rationalise definitions of different terms to a large extent, they are
not uniform in all respects. For example, while the Codes on wages,
occupational safety and social security contain the same definition of
“contractor”, the code on industrial relations does not define the term.
Finally, while the government stated that 40 central labour laws would be
subsumed, the four Codes only replace 29 laws. The Annexure to this
note lists the laws which are being subsumed by each of the Codes.

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Delegated Legislation
 Under the Constitution, the legislature has the power to make laws and
the government is responsible for implementing them. Often, the
legislature enacts a law covering the general principles and policies, and
delegates detailed rule-making to the government to allow for expediency
and flexibility. However, certain functions and powers should not be
delegated to the government. These include framing the legislative
policy to determine the principles of the law. Any Rule should also
remain within the scope of the delegating Act. The question is which
matters should be retained by the legislature and which of these could be
delegated to the government.
 The labour Codes delegate various essential aspects of the laws to the
government through rule-making. These include: (i) increasing the
threshold for lay-offs, retrenchment, and closure, (ii) setting thresholds
for applicability of different social security schemes to establishments,
(iii) specifying safety standards and working conditions to be provided
and maintained by establishments, and (iii) deciding the norms for
fixation of minimum wages.

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5. THE CODE ON WAGES, 2019
 The Code on Wages, 2019 was introduced in Lok Sabha by the Minister
of Labour, Mr. Santosh Gangwar on July 23, 2019. It seeks to regulate
wage and bonus payments in all employments where any industry, trade,
business, or manufacture is carried out. The Code replaces the following
four laws: (i) the Payment of Wages Act, 1936, (ii) the Minimum Wages
Act, 1948, (iii) the Payment of Bonus Act, 1965, and (iv) the Equal
Remuneration Act, 1976.
 Coverage: The Code will apply to all employees. The central
government will make wage-related decisions for employments such as
railways, mines, and oil fields, among others. State governments will
make decisions for all other employments.
 Wages include salary, allowance, or any other component expressed in
monetary terms. This does not include bonus payable to employees or any
travelling allowance, among others.
 Floor wage: According to the Code, the central government will fix a
floor wage, taking into account living standards of workers. Further, it
may set different floor wages for different geographical areas. Before
fixing the floor wage, the central government may obtain the advice of
the Central Advisory Board and may consult with state governments.
 The minimum wages decided by the central or state governments must be
higher than the floor wage. In case the existing minimum wages fixed by
the central or state governments are higher than the floor wage, they
cannot reduce the minimum wages.

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 Fixing the minimum wage: The Code prohibits employers from paying
wages less than the minimum wages. Minimum wages will be notified
by the central or state governments. This will be based on time, or
number of pieces produced. The minimum wages will be revised and
reviewed by the central or state governments at an interval of not more
than five years. While fixing minimum wages, the central or state
governments may take into account factors such as: (i) skill of workers,
and (ii) difficulty of work.
 Overtime: The central or state government may fix the number of hours
that constitute a normal working day. In case employees work in excess
of a normal working day, they will be entitled to overtime wage, which
must be at least twice the normal rate of wages.
 Payment of wages: Wages will be paid in (i) coins, (ii) currency notes,
(iii) by cheque, (iv) by crediting to the bank account, or (v) through
electronic mode. The wage period will be fixed by the employer as
either: (i) daily, (ii) weekly, (iii) fortnightly, or (iv) monthly.
 Deductions: Under the Code, an employee’s wages may be deducted on
certain grounds including: (i) fines, (ii) absence from duty, (iii)
accommodation given by the employer, or (iv) recovery of advances
given to the employee, among others. These deductions should not
exceed 50% of the employee’s total wage.
 Determination of bonus: All employees whose wages do not exceed a
specific monthly amount, notified by the central or state government, will
be entitled to an annual bonus. The bonus will be at least: (i) 8.33% of

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his wages, or (ii) Rs 100, whichever is higher. In addition, the employer
will distribute a part of the gross profits amongst the employees. This
will be distributed in proportion to the annual wages of an employee. An
employee can receive a maximum bonus of 20% of his annual wages.
 Gender discrimination: The Code prohibits gender discrimination in
matters related to wages and recruitment of employees for the same work
or work of similar nature. Work of similar nature is defined as work for
which the skill, effort, experience, and responsibility required are the
same.
 Advisory boards: The central and state governments will constitute
advisory boards. The Central Advisory Board will consist of: (i)
employers, (ii) employees (in equal number as employers), (iii)
independent persons, and (iv) five representatives of state governments.
State Advisory Boards will consist of employers, employees, and
independent persons. Further, one-third of the total members on both the
central and state Boards will be women. The Boards will advise the
respective governments on various issues including: (i) fixation of
minimum wages, and (ii) increasing employment opportunities for
women.
 Offences: The Code specifies penalties for offences committed by an
employer, such as (i) paying less than the due wages, or (ii) for
contravening any provision of the Code. Penalties vary depending on the
nature of offence, with the maximum penalty being imprisonment for
three months along with a fine of up to one lakh rupees.

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a. The Code on Wages (Central Advisory Board) Rules, 2021
Section 42 under Chapter V of the Code on Wages, 2019 provides
for the provision of central advisory board which is to assign the
function of advising the central government on below atter:
(a) fixation or revision of minimum wages and other connected
matters;
(b)providing increasing employment opportunities for women;
(c) the extent to which women may be employed in such
establishments or employments as the Central Government
may, by notification, specify in this behalf; and
(d)any other matter relating to this Code
Therefore the Central Government in exercise of the power conferred under
Section 67 (2) (s) and (t) notified the Code on Wages (Central Advisory Board)
Rules, 2021 that replaces the the Minimum Wages (Central Advisory Board)
Rules, 2011 and the Minimum Wages (Central) Rules, 1950 so far they relate to
section 7,8,9 of the Minimum Wages Act, 1948
6. THE CODE ON SOCIAL SECURITY, 2020

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 The Code on Social Security, 2020 was introduced in Lok Sabha by the
Minister of State for Labour and Employment, Mr. Santosh Kumar
Gangwar, on September 19, 2020. It replaces nine laws related to social
security, including the Employees’ Provident Fund Act, 1952, the
Maternity Benefit Act, 1961, and the Unorganised Workers’ Social
Security Act, 2008. Social security refers to measures to ensure access to
health care and provision of income security to workers.
 Social security schemes: Under the Code, the central government may
notify various social security schemes for the benefit of workers. These
include an Employees’ Provident Fund (EPF) Scheme, an Employees’
Pension Scheme (EPS), and an Employees’ Deposit Linked Insurance
(EDLI) Scheme. These may provide for a provident fund, a pension
fund, and an insurance scheme, respectively. The government may also
notify: (i) an Employees’ State Insurance (ESI) Scheme to provide
sickness, maternity, and other benefits, (ii) gratuity to workers on
completing five years of employment (or less than five years in certain
cases such as for journalists and fixed term workers), (iii) maternity
benefits to women employees, (iv) cess for welfare of building and
construction workers, and (v) compensation to employees and their
dependants in the case of occupational injury or disease.
 In addition, the central or state government may notify specific schemes
for gig workers, platform workers, and unorganised workers to provide
various benefits, such as life and disability cover. Gig workers refer to
workers outside of the traditional employer-employee relationship (e.g.,
freelancers). Platform workers are workers who access other
organisations or individuals using online platforms and earn money by
providing them with specific services. Unorganised workers include
home-based and self-employed workers. It also provides for social
security funds for unorganised workers, and gig and platform workers.

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 Coverage and registration: The Code specifies different applicability
thresholds for the schemes. For example, the EPF Scheme will apply to
establishments with 20 or more employees. The ESI Scheme will apply
to certain establishments with 10 or more employees, and to all
establishments which carry out hazardous or life-threatening work
notified by the central government. These thresholds may be amended by
the central government. All eligible establishments are required to
register under the Code, unless they are already registered under any
other labour law.
 Contributions: The EPF, EPS, EDLI, and ESI Schemes will be financed
through a combination of contributions from the employer and employee.
For example, in the case of the EPF Scheme, the employer and employee
will each make matching contributions of 10% of wages, or such other
rate as notified by the government. All contributions towards payment of
gratuity, maternity benefit, cess for building workers, and employee
compensation will be borne by the employer. Schemes for gig workers,
platform workers, and unorganised workers may be financed through a
combination of contributions from the employer, employee (or
aggregators for gig workers and platform workers), and the appropriate
government.
 For the purpose of schemes for gig and platform workers, the Bill
specifies a list of aggregators including ride sharing services and food
delivery services. Any contribution from an aggregator may be at a rate
notified by the government falling between 1-2% of the annual turnover
of the aggregator, subject to a cap of 5% of the amount paid or payable by
an aggregator to the gig and platform workers.
 Social security organisations: The Code provides for the establishment
of several bodies to administer the social security schemes. These

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include: (i) a Central Board of Trustees, headed by the Central Provident
Fund Commissioner, to administer the EPF, EPS and EDLI Schemes, (ii)
an Employees State Insurance Corporation, headed by a Chairperson
appointed by the central government, to administer the ESI Scheme, (iii)
National and State Social Security Boards, headed by the central and state
Ministers for Labour and Employment, respectively, to administer
schemes for unorganised workers (with the National Board also
responsible for gig and platform workers), and (iv) state-level Building
Workers’ Welfare Boards, headed by a Chairperson nominated by the
state government, to administer schemes for building workers.
 Inspections and appeals: The appropriate government may appoint
Inspector-cum-facilitators to inspect establishments covered by the Code,
and advise employers and employees on compliance with the Code.
Administrative authorities may be appointed under the various schemes
to hear appeals under the Code. For instance, the appropriate government
may notify an appellate authority to hear appeals against the order of the
Inspector-cum-facilitator for non-payment of maternity benefits. The
Code also specifies judicial bodies which may hear appeals from the
orders of the administrative authorities. For example, industrial tribunals
(constituted under the Industrial Disputes Act, 1947) will hear disputes
under the EPF Scheme.
 Offences and penalties: The Code specifies penalties for various
offences, such as the failure to pay gratuity, which may be punished with
imprisonment of one year. Some offences may also be compounded
(settled)
7. THE INDUSTRIAL RELATIONS CODE, 2020

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 The Industrial Relations Code, 2020 was introduced in Lok Sabha on
September 19, 2020. It seeks to replace three labour laws: (i) the
Industrial Disputes Act, 1947, (ii) the Trade Unions Act, 1926, and (iii)
the Industrial Employment (Standing Orders) Act, 1946.
 Trade unions: Under the Code, seven or more members of a trade union
can apply to register it. Trade unions that have a membership of at least
10% of the workers or 100 workers, whichever is less, will be registered.
The central or state government may recognise a trade union or a
federation of trade unions as Central or State Trade Unions, respectively.
 Negotiating unions: The Code provides for a negotiation union in an
industrial establishment, having registered trade unions, for negotiating
with the employer. If there is only one trade union in an industrial
establishment, the employer is required to recognise such trade union as
the sole negotiating union of the workers. In case of multiple trade
unions, the trade union with support of at least 51% of workers on the
muster roll of that establishment will be recognised as the sole
negotiating union by the employer.
 Unfair labour practices: The Code prohibits employers, workers, and
trade unions from committing any unfair labour practices listed in a
Schedule to the Code. These include: (i) restricting workers from
forming trade unions, (ii) establishing employer sponsored trade union of
workers, (iii) coercing workers to join trade unions, (iv) damage to
employer’s property, and (v) preventing any worker from attending work.
Any person who commits unfair labour practices is punishable with a
fine between ten thousand rupees and two lakh rupees.

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 Standing orders: All industrial establishments with at least 300 workers
must prepare standing orders on certain matters. These include: (i)
classification of workers, (ii) manner of informing workers about hours of
work, holidays, paydays, and wage rates, (iii) termination of employment,
(iv) suspension for misconduct, and (v) grievance redressal mechanisms
for workers. The central government will prepare model standing orders,
based on which the industrial establishments will prepare their standing
orders.
 Notice of change: Employers must not change the conditions of service
in certain matters without giving notice of the proposed changes to the
workers being affected, or within 21 days of giving such notice. These
matters include wages, contribution, allowances, working hours, and
leave.
 Lay-off and retrenchment: Employers of non-seasonal industrial
establishments such as mines, factories, and plantations with 50 to 300
workers must (i) pay 50% of basic wages and dearness allowance to a
worker who has been laid off, and (ii) give one month’s notice or wages
for the notice period to the retrenched worker. Lay-off is the inability of
an employer from giving employment to a worker due to reasons such as
shortage of coal, power, or breakdown of machinery. Retrenchment
means termination of services of a worker for reasons other than
disciplinary action. Any person who contravenes these provisions is
punishable with a fine between fifty thousand rupees and two lakh rupees.
 Non-seasonal industrial establishments with at least 300 workers must
take prior permission of the central or state government before lay-off,
retrenchment or closure. The central or state government may increase
this threshold by notification. Such establishments must pay 50% of

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basic wages and dearness allowance to a worker who has been laid off.
In case of retrenchment, the employer must either give three months’
notice or pay the retrenched worker for the notice period. Any employer
who violates these provisions will be punishable with a fine between one
lakh rupees and ten lakh rupees.
 Within one year of retrenchment of workers, if an employer seeks to re-
employ a person, he must prefer retrenched workers over other persons.
 Voluntary arbitration: The Code allows for industrial disputes to be
voluntarily referred to arbitration by the employer and workers through a
written agreement. After investigating the dispute, the arbitrator will
submit the arbitration award to the government. Industrial disputes
include disputes related to terms of employment, non-employment and
dismissal, retrenchment, or termination of workers.
 Resolution of industrial disputes: The central or state governments may
appoint conciliation officers to mediate and promote settlement of
industrial disputes. These officers will investigate the dispute and hold
conciliation proceedings to arrive at a fair and amicable settlement of the
dispute. If no settlement is arrived at, either party to the dispute can
make an application to the Industrial Tribunal, constituted under the
Code. The central government may also constitute National Industrial
Tribunals for settlement of industrial disputes which: (i) involve
questions of national importance, or (ii) could impact industrial
establishments situated in more than one state. The tribunals will have
two members each, one judicial member and one administrative member
with the specified qualifications.

26
 Exemptions from the Code: The 2020 Bill provides that the central or
state government may exempt any new establishment or a class of new
establishment from all or any provisions of the Code in public interest.
8. THE OCCUPATIONAL SAFETY, HEALTH AND WORKING
CONDITIONS CODE, 2020

27
 The Occupational Safety, Health and Working Conditions Code, 2020
was introduced in Lok Sabha by the Minister of Labour and Employment,
Mr. Santosh Kumar Gangwar, on September 19, 2020. The Code
consolidates 13 existing Acts regulating health, safety, and working
conditions. These include the Factories Act, 1948, the Mines Act, 1952,
and the Contract Labour (Regulation and Abolition) Act, 1970.
 Coverage: The Code will apply to establishments employing at least 10
workers. It will apply to all mines, docks, and establishments carrying
out any hazardous or life-threatening activity (may be notified by the
central government). Certain provisions of the Code, such as health and
working conditions, apply to all employees. Employees include workers
and all other persons earning wages for any work, including managerial,
administrative, or supervisory work.
 Exemptions: The appropriate government can exempt any workplace or
activity from the Code in case of a public emergency, disaster, or
pandemic for up to a year. Further, the state government can exempt new
factories from the Code for the specified period for creating more
economic activity and employment.
 Registration and license: Establishments covered by the Code are
required to register within 60 days (of the commencement of the Code)
with registering officers, appointed by the central or state government.
Factories may be required to obtain a license to operate. The Code
requires those hiring workers such as beedi and cigar workers and
contract labourers to obtain licenses.

28
 Duties of employers: Duties of employers include: (i) providing a
workplace that is free from hazards, (ii) providing free annual health
examinations in notified establishments, and (iii) informing relevant
authorities in case any accident at the workplace leads to death or serious
bodily injury to any employee. Additional duties are prescribed for
employers in factories, mines, docks, plantations, and building and
construction work, including provision of a risk-free work environment,
and instructing employees on safety protocols.
 Rights and duties of employees: Duties include taking care of their own
health and safety, complying with safety and health standards, and
reporting unsafe work incidents to the Inspector. Employees also have
certain rights including the right to obtain information on safety and
health standards from the employer.
 Work hours: No worker will be required or allowed to work in any
establishment for more than eight hours in a day. For overtime work,
workers must be paid at twice the rate of daily wages. Prior consent of
workers is required for overtime work. Women can work past 7 pm and
before 6 am, subject to any safety-related or other conditions prescribed
by the government.
 Leave: Workers cannot be required to work for more than six days a
week. Further, they must receive one day of leave for every 20 days of
work per year.
 Working conditions: Working conditions will be notified by the central
government. Conditions may include hygienic work environment, clean
drinking water, toilets, ventilation, and adequate lighting.

29
 Welfare facilities: Welfare facilities such as canteens, first aid boxes,
and crèches, may be provided as per standards notified by the central
government. Additional facilities may be specified for factories, mines,
docks, and building and construction works, such as welfare officers and
temporary housing.
 The Code includes three schedules containing lists of: (i) 29 diseases that
the employer is required to notify the authorities of, in case a worker
contracts them, (ii) 73 safety matters that the government may regulate,
and (iii) 40 industries involving hazardous processes. The lists may be
amended by the central government.
 Inspectors: The government can appoint inspector-cum-facilitators to
conduct inspections and inquire into accidents. They have certain
additional powers in case of factories, mines, docks, and building and
construction works, including: (i) reducing the number of employees
working in sections of the establishment, and (ii) prohibiting work in
dangerous situations.
 Advisory boards: The central and state governments will set up
Occupational Safety and Health Advisory Boards at the national and state
level. These Boards will advise the respective government on the
standards, rules, and regulations to be framed under the Code.
Safety committees: The government may require certain establishments to
constitute safety committees in case of a certain class of workers. The
committees will be composed of representatives of the employer and workers

30
and will function as a liaison between them. The number of representatives of
workers in the committee must not be less than that of the employer.
9.
9. ADVISORY SERVICES

31
The country’s eased regulatory scenario and improved ease of doing are
increasingly offering opportunities to businesses to grow. Every Business leader
needs a professional help to assist them in developing and delivering strategic
direction to their respective business.
Key component in advisory services includes:
1. Strategy planning and implementation:
These services are aimed at assisting the top management of an
organisation in deciding the strategic direction and ensuring their
functional heads buy into the vision of the organisation.
2. Market assessments and competition landscaping:
The professionals may helps businesses become more aware of their
market, operating landscape, competition and own positioning. Our
business consulting services typically include market size (volume and
value), growth (historical and projected), demand-supply gap analysis,
price point analysis, value chain, competitor analysis, drivers/challenges
and trends, relevant models showing the business strengths and
positioning, etc.
3. Business planning: through the analytical skill, the professional may
come up with business planning, it will cover the detailed market
scenario, operating model, regulatory aspects, pricing and margins basis
competition, supply chain model, fixed and variable expenses etc.
4. Commercial due diligence: Companies preparing for a transaction or
currently in an ongoing transaction need an analysis of the market and
competition, supply chain and validation of the future projections of the
business basis the management model, customer interviews, competition
and market assessment. Along with these analysis, they can provide a
reasonability assessment on the financial projections by the management

32
along with a detailed report, which can be used by investors and financial
institutions to formulate their view on the transaction.
5. Annual plan of operation:
This will including all preparation and targets to be achieved in the
coming year in light with budgetary plan. The professional may set
common top-down and bottom-up objectives to be achieve throughout the
year. To ensure the well implementation of annual plan the professional
may also come up with strategies of quarterly monitoring tracking the
implementation.
6. Landing an excellent deal
The advisory services also includes the Deal advisory aspect, the business
may constantly come across with the concept of offering or accepting a
deal. There comes point in every organization where they will need to
seize the opportunities to jump on crucial business with intention
expanding their business. The professional with knowledge of marketing
condition, potential in deal in light of benefit to the organization may
advise either to go for it or do certain modifications in it, suitable to
achieve desire success out of it.
There assistance is essential in every step for successful closure of deal.
For that they will be providing service such as
a. Strategy for better implementation ensuring desire output
b. Review of business plan
c. Research of marketing condition, trends, practice etc.
d. Targeting partners that will go for the deal, taking note of their
present professional needs
e. Negotiating the deal
f. Finalizing the MoU
g. Due diligence ensuring documentations, study reports etc.
h. Making available the pro’s and con’s of deal etc.

33
It is a common practice that every day business may come across with the offer
of deal putting them under a dilemma to accept or reject it. In this dicey
situation they may always go for crucial advise of professionals whose
responsibility with offer of deal is to
i. Determining the potential in deal
j. Studying the same and taking market tour, finding the similar
instances analyzing their results
k. Facilitating negotiation motivated with their business growth goal
l. Figuring out the solution suitable for both sides
m. Finally conveying their advise and closing the deal
7. Fund raising:
The required amount of funding for a business is as important as oxygen for an
asthama patient. The professional by connecting through financial institutions
such as banks, NBFCs private equity and venture capital funds lands significant
fund deal with well planned assesstment of finances.

34
10.HOW THE ASSISTANCE IN EMPLOYMENT LAWS
COMPLIANCE OF ENSURES THE GROWTH
ORGANIZATION?
The professionals are required to be well versed with the regulatory knowledge,
compliance requirement, technical procedure, policy requirement etc. There
services especially in terms up to date compliance of mandates conferred over
the organization through various legislation including the employment
legislation are not just important so to save from penal consequences rather they
drive the growth the business taking them new heights of success, increasing the
business efficiency by improving upon their ease of doing business.
Knowledge: knowledge being the valuable assets of a professional which has
taken them to the position that they are now, cater the success of organisation
that they are providing guidance to.
Optimisation: The assitance of professional in setting up the organisational
structure of buisness ensures optimises of execution and excellence.
Alignment: The pattern of internal management of an organisation are design
in such way so as to ensure that the same are in alingment with strategic growth
plans.
Implementation set-up: The added advantage of professional assistance is that
they are updated with latest regulatory requirement and that reflects from the
innovating mechanism that further ensure the successful implementation

35
11.HOW THE PROFESSIONAL CAN HELP THE
ORGANIZATION FOR COMPLYING WITH THE
EMPLOYMENT LAWS?
The assistance of expert is crucial for any business since its inception. There
service may start right from planning the organization chart. Every business
comprises of number of employees who are working constantly on all levels of
departments whether it be financial, legal, management etc.
Organization Structure:
In deciding the structure of organization there are crucial factors which are
needed to give attention to.
a. Reporting relationship: It is all about patterns of formal communication.
This should be set in such a way that there shall not be any situation of
miscommunication and the same time done with focus of time saving. For
instance the marketing and operation team should be connected to

36
common communication so that each of them will understand their
respective function.
b. Lines of authority: This will decides the chain of reporting that is the
question to who the person will report.
c. Chain of command: this pertains to determining the layers of top
managerial position and lowest managerial position.
d. Delegating authority : This aspect deals with the intend of under
burdening the managerial work as well as giving opportunities to
subordinate to learn and develop new skills
e. Responsibility and authority: Although at the initial stage the leader of
the business are accorded all responsibilities and authorities, but as it
grows they have assign certain function to the subordinate staff so that
they could focus on crucial planning and figuring out the ways to execute
it to further growth of business.
Monthly management:
As explained earlier there are several layers of reporting, management,
authorities involve in an organization. Therefore keeping the track of
everyone’s performance and account is bit of a task that can be reduce with
professional assistance.
This involves certain functioning such as:
a. Maintaining the accounting records of each employee, the data pertaining
to fixed assets accounting, Employee expense reimbursements etc.
b. Supervision of the in-house accounting team
c. Strategies for budget planning, review and comparing with actual reports
of expenses. Keeping the track of financial performance
d. Suggest measures to improve overall efficiencies in the processes

37
Advise/consultancy
The organization structuring as explaining is one of the advisory services.
Additionally the professional may provide their crucial advise in drafting and
can even undertaking the actual drafting of the policies while doing so they are
require to include and involve key recommendations and requirement.
The organization policies are usually comprises of work conditions, employee
benefits, office rules, code of conduct, and various factors related regulations. It
should be such smooth written like a handbook for employee noting all the
rights and responsibilities they are assigned with.
Compensation structure:
From the employment point of view compensation is one such crucial aspect
that the organization cannot afford to give less attention to. So the professional
assistance of expert with regard to Employee tax compliance will be required so
as to draft the compensation structuring.
Handholding supporting in employment laws compliance:
The employment law being the crucial for stable growth of every organization,
it is significant that the mandates provided under it, are well complied. This
task can be better performed by expert who will take responsibilities of
periodical compliance ensuring the business is in accordance with regulations.
Owing to the fact of constant updates in regulatory mechanism, this professional
may provided there assistance in implementing any change in provisions,
clarifications, notified after the effective date.

38
12.LABOUR LAW COMPLAINCE OF INDIA
Statutory compliance under various labour laws has to be ensured by
establishments. It is not just limited to the statutory deposits, returns and records
to be maintained by the employer under various labour laws, but also to
represent them in case of prosecution under various statutes. Hence, it hardly
needs to be emphasized that the labour related laws cast an obligation on the
employer for meticulous, impeccable and timely compliances. In the event of
violation or delay in complying with the statutory requirements, the
consequences in terms of levy of damages, prosecution is inevitable.
A specimen checklist to check compliance of labour laws is given hereunder.
Legislation Objective &
Applicability
Compliance
Requirements
The Apprentices Act ,
1961
This Act provides for the
regulation and control of
training of apprentices,
and to supplement the
availability of trained
technical employees for
the industry. The Act
requires employers to
hire apprentices in
certain designated trades
as notified by the
Government.
 Appointment of
apprentices if the
company falls
under the notified
industry.
 Submission of
returns as
stipulated under
the Act.
 Maintenance of
registers as
required under the
Act.
The Contract Labour
(Regulation & Abolition)
This Act regulates the
employment of Contract
 Working
conditions of

39
Act , 1970 and Rules Labour in certain
establishments and
provides for its abolition
in certain circumstances.
It applies to every
establishment or
contractor wherein 20 or
more workmen are or
were employed on any
day of the preceding 12
months as contract
labour.
workmen.
 Adequate facilities
like drinking
water, canteen etc
for workmen.
 Adequate facilities
for women
workers also.
 Maintenance of
registers as
required under the
Act.
 Submission of
returns.
The Employee State
Insurance Act , 1948
This Act provides for the
provision of benefits to
employees in case of
sickness, maternity and
employment injury. All
employees including
casual, temporary or
contract employees
drawing wages less than
Rs 10000 per month are
covered.
 Remittance of
contribution every
month.
 Maintenance of
registers.
 Submission of
returns as per the
provisions of the
Act.
The Employee's
Provident Fund and
Miscellaneous
The EPF and M Act
provides for the
compulsory institution of
 Payment of
contribution every
month.

40
Provisions Act , 1952 contributory provident
funds, pension funds and
deposit linked insurance
funds for employees.
This Act applies to
industries specified in
Schedule I employing 20
or more persons and any
other class of
establishments
employing 20 or more
persons notified by the
Government.
 Maintenance of
registers.
 Submission of
returns as per the
provisions of the
Act.
The Employment
Exchanges (Compulsory
Notification of
Vacancies) Act , 1959
The Employment
Exchanges Act aims to
provide for compulsory
notification of vacancies
to employment
exchanges. It applies to
all establishments in the
public sector and to
establishments in the
private sector ordinarily
employing more than 25
employees.
 Intimation of
vacancy to the
local employment
exchange when
vacancy arises.
 Submission of
returns.
The Equal Remuneration
Act , 1976
This Act provides for
payment of equal
remuneration to men and
women workers, for the
 No discrimination
with regard to
payment for the
same work done

41
same work and prevents
discrimination on the
grounds of sex against
women in the matter of
employment, recruitment
and for matters
connected therewith or
incidental thereto. This
Act is applicable to
almost every kind of
establishments.
by men and
women workers.
 Maintenance of
register.
The Factories Act
provides for the health,
safety, welfare, service
conditions and other
aspects of workers in
factories. It applies to all
factories employing
more than 10 people and
working with the aid of
power or employing 20
people and working
without the aid of power.
It covers all workers
employed in the factory
premises or precincts
directly or through an
agency including a
contractor, involved in
 Licensing and
renewal of licence
under the Act.
 Provision of
adequate safety
measures within
the factory
premises.
 Provision of
adequate welfare
measures like
creche, canteen,
wash room etc for
the workers.
 Payment of wages
as per the
provisions of the

42
any Act.
 Payment of
overtime wages.
 Maintenance of
registers.
 Submission of
returns.
The Industrial Disputes
Act , 1947
The objective of the
Industrial Disputes Act is
to secure industrial peace
and harmony by
providing machinery and
procedure for the
investigation and
settlement of industrial
disputes by negotiations.
This Act applies to every
industrial establishment
carrying on any business,
trade, manufacture or
distribution of goods and
services irrespective of
the number of
workmen employed
therein. Every person
employed in an
establishment for hire or
reward including
 Prevention of
unfair labour
practices.
 Prior permission
of appropriate
Government /
concerned labour
authority for
laying off or
retrenching the
workers or closing
down the
industrial
establishment.
 Payment of
compensation to
workers on
account of closure
or lay off or
retrenchment.

43
contract labour,
apprentices and part time
employees to do any
manual, clerical, skilled,
unskilled, technical,
operational or
supervisory work, is
covered by the Act.
The Industrial
Employment
and Standing Orders
Act , 1946
The Standing Orders Act
requires employers to
clearly define and
publish standing orders
(service rules) and to
make them known to the
workmen employed by
them. It applies to every
industrial establishment
where 100 or more
workmen are/were
employed on any day of
the preceding 12 months.
 Formulation of
service rules and
obtain its approval
from the
concerned Labour
authority.
 Display of
standing orders in
a prominent place
for the knowledge
of workers.
The Maternity Benefit
Act ,
1961
The Maternity Benefit
Act aims to regulate the
employment of women
in certain establishments
for certain periods before
and after child birth and
to provide for maternity
benefits including
 Grant of leave
along with
payment of wages
after child birth or
any other
maternity related
problems like
abortion etc.

44
maternity leave, wages,
bonus, nursing breaks
etc.
It is applicable to every
factory, mine or
plantation including
those belonging to
Government, irrespective
of the number of
employees, and to every
shop or establishment
wherein 10 or more
persons are employed or
were employed on any
day of the preceding 12
months.
 Submission of
returns.
The Minimum Wages
Act , 1948
This Act was formulated
to provide for fixing
minimum rates of wages
in certain employments.
It applies to all
Establishments
employing one or more
persons and engaged in
any of the scheduled
employments.
 Provision of
minimum rate of
wages as
prescribed by the
government.
 Maintenance of
registers as
prescribed under
the Act.
 Submission of
returns.
The Payment of Bonus The object of the  Payment of bonus

45
Act ,
1965
Payment of Bonus Act is
to provide for the
payment of bonus
(linked with profit or
productivity) to persons
employed in certain
establishments and
matters connected
therewith. This Act is
applicable to every
factory and to every
establishment wherein 20
or more workers are
employed on any day
during an accounting
year.
in accordance with
the provisions of
the Act.
 Submission of
returns
The Payment of Gratuity
Act , 1972
The Act provides for a
scheme for the payment
of gratuity to employees
engaged in factories,
mines, oilfields,
plantations, ports,
railway companies,
shops or other
establishments.
The Act enforces the
payment of 'gratuity', a
reward for long service,
 Payment of
gratuity to
employees leaving
the establishment
after
completion of 5
years.
 Notice of opening
to concerned
labour authority.
 Displays required

46
as a statutory retiral
benefit. Every employee
irrespective of his wages
is entitled to receive
gratuity if he has
rendered continuous
service of 5 years or
more than 5 years.
under the Act.
 Maintenance of
registers of
allocable surplus,
bonus etc.
 Submission of
annual returns.
The Payment of Wages
Act,
1936
The Act ensures payment
of wages in a particular
form at regular intervals
without unauthorised
deductions. It is
applicable to any factory,
any railway
establishment and any
industrial or other
establishment like
tramway service, motor
transport service, air,
oilfield, plantation,
workshop, or other
establishment producing,
adapting or
manufacturing any
article, establishments
engaged in construction,
development and
 Payment of wages
without any
unauthorised
deductions.
 Maintenance of
registers of fines,
deductions,
advance, wages
etc.
 Displays as per the
provisions of the
Act.
 Submission of
annual returns.

47
maintenance of
buildings, roads,
bridges or canals,
navigation,
irrigation or water
supply,transmission,
generation and
distribution of
electricity/power and any
other establishment
notified by the Central or
a State Government.
The The Indian Boilers
Act ,
1923
The Act aims to regulate
the licencing and use of
boilers in the
Industry. It applies to all
establishments using a
boiler.
 Licensing of
boilers
 Adequate safety
precautions
 Appointment of
trained personnel
to handle the
boilers.
 Maintenance of
registers as per the
provisions of the
Act.
The Weekly Holidays
Act , 1942
The Weekly Holidays
Act provides for grant of
weekly holidays to
 Provision of
weekly holidays.

48
persons employed in
shops, restaurants and
theatres.
The Trade Unions Act ,
1926
This Act provides for
registration of trade
unions (including
association of
employers) with a view
to render lawful
organisation of labour to
enable collective
bargaining. The act also
confers certain protection
and privileges on a
registered trade union. It
applies to all kinds of
unions of workers and
associations of
employers which aim at
regularizing
labour management
relations.
 Registration of
trade unions in
accordance with
the provisions of
the Act.
The Workmen’s
Compensation Act , 1923
The act aims to provide
workmen and their
dependents,
compensatory payment,
in case of accidents
arising out of and in
course of employment
 Provision of
compensation in
case of accident.
 Submission of
returns as
stipulated under
the Act.

49
and causing either death
or disablement of
workmen.
The act applies to
factories, mines, docks,
construction
establishments,
plantations, oilfields and
other establishments
listed in Schedule II and
III of the act but
excludes establishments
covered by the ESI Act.
To facilitate day to day functioning, a sample checklist of periodic
Returns and Information to be filed with the concerned authority, which
could be effectively followed to ensure compliance of various employment
laws, is given below.
Month wise
Month Legislation Form Return Authority
The
Employment
Exchanges
(Compulsory
ER 1 Quarterly
return
Local
Employment
exchange

50
Notification
of
Vacancies)
Act ,
1959
January The The
Factories act,
1948
Vary
according to
State Rules
State rules Chief
Inspector of
Factories
Februay The The
Minimum
Wages Act,
1948
Form III Annual return Regional
labour
inspector
July The
Employment
Provisions
Act , 1952
Exchanges
(Compulsory
Notification
of Vacancies)
Act ,
1959
ER 1 Quarterly
return
for quarter
ended
June
Local
employment
exchange
December The Payment
of Bonus
Form D Annual return Regional
labour

51
Act, 1965 and
Rules
Inspector
Every month
Legislation Form Compliance Authority
The Employee
State Insurance
Act , 1948
Challan Remmittance of
contribution
Regional ESI
office
The Employee's
Provident Fund
and Miscellaneous
Challans Remmittance of
contribution
Regional ESI
office
The Employee's
Provident Fund
and Miscellaneous
Provisions Act ,
1952
Return Return of
employees joining
and leaving the
organisation.
Regional PF
office
On occurrence
Date Legislation Form Compliance Authority
Within 15
days
The Contract
Labour
(Regulation
& Abolition)
Form VIB Commencement
and/or
completion of
each contract

52
Act , 1970
and Rules
Concerned
Labour
Inspector of the
region
Immediately
in
case of death
and
within 48
hours in case
of accident
The
Employee
State
Insurance Act
1948
Form 16 Report of
accident
Regional ESI
office
Within 30
days of
applicability
of Act
The Payment
of Gratuity
Act, 1972
Form A Notice of
opening
Regional
labour
authority
Sr.
no.
Legislation Certifications
1 The Payment of Wages Act, 1936 1) Annual Certificate
provides that the wages
were paid in accordance
with the Act
2) How many number of
employees in the
establishment governed by
the Act

53
3) No deduction from wages
has been made other than
those authorised under the
Act
4) Calculation of wage period
2 The Payment of Bonus Act, 1965 1) Determination of
Available and Allocable
surplus and correctness of
Computation
2) Timely payment of bonus
3) Bonus is paid to the
eligible persons.
4) Whether the company paid
minimum or maximum
bonus ?
3 The Provident Funds and
Miscellaneous Provisions Act
1) Timely deposits of
employer and Employee's
dues with Provident Fund
2) Reporting of cases where
proceedings under the Act
have been initiated against
the Directors for recovery
of dues.
3) If the Employer has created
its own trust, whether the
terms of trust are more
beneficial than those
provided under the trust?
4 The 1) Whether liability for

54
gratuity has been provided
for in the accounts
maintained or not ?
2) Whether the company has
formed another trust that
would take over the
liability arising out of
gratuity ?
3) Number of claims during
the year for the payment of
gratuity and time taken for
its settlement.
4) Whether the Gratuity has
been paid in accordance
with the provisions of the
Act ? 5) Whether any
dispute exists/arises
against the company for
non payment of gratuity ?
If so, details thereof
5 The Trade Union Act, 1926 1) Number of Registered
Trade unions in operation
in the factory and its
affiliations to any All India
Organisations of trade
Unions.
4 The Employees Compensation Act,
1923
1) Fatal Accidents are to be
reported.
2) time taken for payment for

55
compensation. Disputes on
settlement of compensation
to be reported.
3) Any case of occupational
Disease reported in the
factory or establishment.
4) Insurance Cover for
meeting the liability.
5) Pending disputes under the
Act and its natures along
with note on liability
accepted by the Employer.
8 The Minimum Wages act, 1948 1) Whether the company is
paying the wages in
accordance with the
provisions of the Act?
13.THE LABOUR LAWS (EXEMPTION FROM FURNISHING
RETURNS & MAINTAINING REGISTERS BY CERTAIN
ESTABLISHMENTS) ACT, 1988
Objective: The main objective of the Act is to exempt establishments
employing a small number of persons from furnishing returns and maintaining
registers under certain labour laws. This Act relieves the small companies from
following cumbersome paperwork that is required under various labour laws
both at the Central and State level thereby reducing the compliance requirement
under various labour laws.

56
Applicability
• This Act is applicable to small establishments or very small establishments.
• An establishment may be an industrial or other establishment or factory or
plantation or newspaper establishment.
• Small establishment means an establishment in which not less than ten and not
more than nineteen persons are employed or were employed on any day of the
preceding twelve months.
• Very small establishment means an establishment in which not more than nine
persons are employed or were employed on any day of the preceding twelve
months.
Exemption from returns and registers under certain labour laws:
Small establishments and very small establishments are exempted from
submitting returns and maintaining registers under the following Acts:
1) The Payment of Wages Act, 1936
2) The Weekly Holidays Act, 1942
3) The Minimum Wages Act, 1948
4) The Factories Act, 1948
5) The Plantations Labour Act, 1951
6) The Working Journalists and other Newspaper employees (conditions
of service) and
Miscellaneous Provisions Act, 1955

57
7) The Contract Labour (Regulation and Abolition) Act, 1970
8) The Sales Promotion employees (Conditions of Service) Act, 1976
9) the Equal Remuneration Act, 1976
But the employer of small and very small establishments should continue to
do the following:
i. Issue wage slips in the Form XI prescribed in the Minimum Wages
(Central) Rules, 1950, made under Secs. 18 and 30 of the Minimum
Wages Act, 1948 (11 of 1948)
ii. Issue slips relating to measurement of the amount of work done by
piece rated worker required to be issued under the Payment of Wages
(Mines) Rules, 1956 made under Secs. 13 A and 26 of the Payment of
Wages Act, 1936 (4 of 1936)
iii. File returns relating to accidents under Secs. 88 and 88 A of the
Factories Act, 1948 (63 of 1948), and Secs. 32 A and 32 B of the
Plantations Labour Act, 1951 (69 of 1951).
Returns and registers under the act:
Instead of maintaining registers and filing returns under the above mentioned 9
legislations, the employer of small and very small establishments should do the
following:
• Submit Core returns in Form A for the year ending 31st December.
This return should be submitted on or before the 15th February of the
succeeding year by small establishments and very small establishments.
This return should contain the details of the establishment / employer /

58
principal employer / contractor and the nature of operation / industry
/work carried on.
• Maintain register in Form B.
This is the register of wages required to be maintained by small
establishments. It should be maintained within seven days of the expiry of
the wage period.
• Maintain register in Form C.
This is the muster roll to be maintained by small establishments.
• Maintain register in Form D.
This is the monthly register showing welfare amenities to be maintained
by small establishments. It should be completed within seven days of the
expiry of each calendar month.
• Maintain register in Form E.
This is the monthly register of muster roll cum wages required to be
maintained by very small establishments.
Penalty: An employer who fails to comply with the provisions of the Act will
be liable to payment of fine that may extend to Rupees five thousand in case of
first conviction and in case of second or subsequent conviction, the employer
will be liable to imprisonment for a period not less than one month but may
extend to six months or with fine not less than Rupees ten thousand rupees but
may extend to Rupees twenty thousand, or with both.

59
14.THE EASE OF COMPLIANCE TO MAINTAIN REGISTERS
UNDER VARIOUS LABOUR LAWS RULES, 2017
The Ministry of labour & employment has notified “Ease of Compliance to
maintain Registers under various Labour Laws Rules, 2017” on
21st
February 2017 which has in effect replaced the 56 Registers/Forms under 9
Central Labour Laws and Rules made there under in to 5 common
Registers/Forms. This will save efforts, costs and lessen the compliance burden
by various establishments.
Such 9 labour laws are as under:

60
i. The Building and Other Construction Workers (Regulation of
Employment and Conditions of Service) Act, 1996 (27 of 1996);
ii. The Contract Labour (Regulation and Abolition) Act, 1970 (37 of
1970);
iii. The Equal Remuneration Act, 1976 (25 of 1976);
iv. The Inter-State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act, 1979 (30 of 1979); (v)
v. The Mines Act, 1952 (35 of 1952)
vi. The Minimum Wages Act, 1948 (11 of 1948);
vii. The Payment of Wages Act, 1936 (4 of 1936);
viii. The Sales Promotion Employees (Conditions of Service) Act, 1976
(11 of 1976); and
ix. The Working Journalists and Other Newspaper Employees
(Conditions of Service) and Miscellaneous Provisions Act, 1955 (45
of 1955)
The five common Registers/Forms are as under:
FORM A
FORMAT OF EMPLOYEE REGISTER
[Part-A: For all Establishments]
Name of the Establishment-------------------------Name of Owner-----------------------------LIN-
-----------
Sr. Employee Name Surname Gender Father/spouse’s Date Nationality Education Date of Desig

61
no. code name of
birth
joining nation
1 2 3 4 5 6 7 8 9 10 11
Categor
y
address
(HS/S/S
S/US)
Type of
employ
ment
Mobile UAN PAN ESIC
IP
LWF A
Ad
har
Ba
nk
A/
C
nu
mb
er
B
an
k
Branch
(IFSC)
Present
address
Perm
anent
12 13 14 15 16 17 18 19 20 21 22 23 24
Series
book
no.
Date
of
exist
Reason
for exit
Mark of
identification
Photo Specimen
signature/thumb
impression
Remarks
*(Highly Skilled/Skilled/Semi Skilled/Un Skilled)
[PART B: FOR THE MINES ACT, 1952 (35 of 1952) ONLY]
Sr. no. in
employee
register
Name Token
number
Date of first
appointment
with present
owner
Certificate
of
age/fitness
taken (for
14 to 18
years)
Place of
employment
(underground
/open
cast/surface)
Certificate of
vocal training
Number date
1 2 3 4 5 6 7 8
Nominee Adult person to be contacted in case of
emergency
Remarks Signature of
mines

62
manager
Name Address Name and
relationship
Address Mobile
9 10 11 12 13 14 15
Not necessary in case digital form
FORM B
FORMAT FOR WAGE REGISTER
Rate of minimum wage and since the date
Highly skilled Skilled Semi-skilled Un skilled
Minimum basic
DA
Overtime
Name of the Establishment______________________Name of Owner______________________
LIN_______________________________
Wage period From To (Monthly/Fortnightly/Weekly/Daily/Piece Rated)
Sr.no. of
employe
e in
register
Nam
e
Rate
of
wag
e
No. of
days
worke
d
Overtim
e hours
worked
Basi
c
Specia
l basic
D
A
Paymen
t online
HR
A
Other
s
Tota
l
1 2 3 4 5 6 7 8 9 10 11 12
Deduction Net
Payment
Employer
share PF
welfare
found
PF ESIC Society Income
Tax
Insurance Others Recoveries Total
13 14 15 16 17 18 19 20 21 22
Receipt by Employee/Bank Date of payment Remarks

63
Transaction ID
23 24 25
In case of Mines Act any Leave Wages paid should be shown in the Others Column and specifically
mentioned in the Remarks column also.
FORM C
FORMAT OF REGISTER OF LOAN/ RECOVERIES
Name of Establishment___________________________LIN_________________________
Sr. no. of
employee
in register
Name Recovery type
(damage/loss/fine/advance/loans)
Particulars Date of
damage /
loss
Amount
1 2 3 4 5 6
Whether
shows
cause
issued
Explanation
heard in
presence of
No. of
instalments
First
month/year
Last
month/year
Date of
complete
recovery
Remarks
7 8 9 10 11 12 13
*Applicable only in case of damage/loss/fine
FORM D
FORMAT OF ATTENDANCE REGISTER
Name of Establishment_____________________________ Name of
Owner______________________LIN _____________________________
For the Period From To
Sr. no. in
employee in
register
Name Relay or set
work
Place of
work date
Summary
no. of days
Remarks
no. hours
Signature of
register
keeper

64
1 2 3 4
…..31
In
Out
1 2 3 4, 5,6,7 8 9 10
FORM E
FORMAT OF REGISTER OF REST/LEAVE/LEAVE WAGES UNDER THE MINES ACT,
1952, THE SALES PROMOTION EMPLOYEES (CONDITIONS OF SERVICE) ACT, 1976
AND THE WORKING JOURNALISTS (CONDITIONS OF SERVICE) AND
MISCELLANEOUS PROVISIONS ACT, 1957
Name of Establishments______________________ Name of Owner
_______________________LIN_______________________________
For the Year
Sr. no. in
employee
register
Name No. of
days
worked in
the year
Details of compensatory rest
Opening
balance
Added Rest not
allowed
Rest
availed
Closing
balance
1 2 3 4 5 6 7 8
Details earned leave Details of medical balance
Opening
balance
Added Leave availed
closing
balance
Openi
ng
balanc
e
Added Leave
availed
Closing balance
Details of other leave remarks

65
Opening balance Added Leave availed Closing balance
17 18 19 20 21
15.COMPLAINCE UNDER THE SEXUAL HARASSMENT OF
WOMEN AT WORKPLACE (PREVENTION, PROHIBITION
AND REDRESSAL) ACT, 2013 (POSH)
The Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013 was enacted sixteen years after the Supreme court
judgment in the Vishaka & Ors vs State Of Rajasthan & Ors AIR 1997 SC 3011
decided on 13 August, 1997 wherein the apex court have laid down the
guidelines to be observed in all work places that guarantees protection against
sexual harassment, abuse more importantly sexual harrasment at workplace.
The 12 points in guidelines famouly known as “Vishakha Guidelines” were to
be strictly observed till the enactment of suitable and effective legislation

66
pertaining to protecting right of women to be protection from sexual harassment
at workplace.
Pursuant to the judgments the central government enacted the aforesaid act that
guarantee the protection against sexual harassment of women at workplace and
for the prevention and redressal of complaints of sexual harassment and for
matters connected therewith or incidental thereto.
The act vide chapter VI Section19 conferred certain duties upon the employer
that includes
(b)Providing a safe workplace enviroment
(c) Display at relevant place of workplace the penal consequences of
sexual harassment and order of Internal Committee
(d)Organising workshops, awareness programme, orientation
programmes, for sensitising the employees with provision of the
act
(e) Facilities to Internal committee / Local Committee to deal with
compliant and inquiry into compliant
(f) securing the attendance of respondent and witnesses before the
Internal Committee or the Local Committee
(g)giving relevant information to the Internal Committee or the Local
Committee
(h)provide assistance to the woman if she so chooses to file a
complaint in relation to the offence under the Indian Penal Code
1860
(i) causing the initiation of action
(j) treat sexual harassment as a misconduct under the service rules and
initiate action for such misconduct
(k)monitor the timely submission of reports by the Internal Committee

67
compliance:
1. to constitute the Internal Complaints committee under section 4 of
the act consisting of as below
- a Presiding Officer who shall woman working employed at
senior level
- two Members from amongst employees preferably
committed to the cause of women or who have had
experience in social work or have legal knowledge;
- one member from amongst non-governmental organisations
or associations committed to the cause of women or a person
familiar with the issues relating to sexual harassment
2. A Local Complaints Committee (LCC) will be set up in each
district to hear complaints from institutions where there are fewer
than ten employees, or where the complaint is against the employer
himself
Composition:
- One chairperson women working in block, taluka or tehsil or
ward or municipality in the district
- Two member where at least one shall be a woman from non-
governmental organisations or associations committed to the
cause of women or a person familiar with the issues relating
to sexual harassmen
- One concerned officer the social welfare or women and child
development in the district
Complaint before such committee and who is eligible to make complaint in the
absence of aggrived women:
In case of physical incapacity
- Relative
- Frience
- Co worker
- Officer of National / State commision of women
- Person with knowledge of concerned incident with her
written consent

68
In case of mental incapactiy
- Relative
- Frience
- Special educator
- Qualified psychatrist / psychologist
- Guardian/ authority under whose care complainant is
receiving care / treatment
- Person with knowledge of concerned incident with written
consent
In case of complainant’s death
- Any Person with knowledge of concerned incident with
written consent of legal heir
In case of other reason
- Any Person with knowledge of concerned incident with her
written consent
company policy acknowledging women employee protection:
The employee must make policy in such way:
1. Make sure there is a policy that has been “effectively” communicated to
all workers, irrespective of whether they are paid or volunteers.
2. Display details of both informal and formal ways available to a worker to
address/complain about workplace sexual harassment.
3. Undertake orientation on workplace sexual harassment for all workers in
respective organizations, establishments or institutions.
4. A Complaints Committee which is trained in terms of skill and capacity is
critical for building trust.
5. Encourage senior persons/leaders/supervisors or any person who can
influence employmentrelated decisions, to become role models.

69
6. Men and women should be included in building a culture which no longer
tolerates workplace sexual harassment
Penal consequence:
 An employer can be subjected to a penalty of up to INR 50,000 for:
 Failure to constitute Internal Complaints Committee
 Failure to act upon recommendations of the Complaints Committee; or
 Failure to file an annual report to the District Officer where required; or
 Contravening or attempting to contravene or abetting contravention of the
Act or Rules. Where an employer repeats a breach under the Act, they
shall be subject to:
 Twice the punishment or higher punishment if prescribed under any other
law for the same offence.
 Cancellation/Withdrawal/Non-renewal of registration/license required for
carrying on business or activitie
Disclosure of compliance of above Act in Annual Report is mandatory for
companies:
The Companies (Accounts) Rules, 2014, to make it part of the mandatory non-
financial disclosures in annual reports of private companies under Section 134
of the legislation wherein non-disclosure attracts penal provisions given under
subsection (8) of the said section 134.
Accordingly, all companies will have to provide “a statement that the Company
has complied with provisions relating to the constitution of Internal Complaints
Committee under the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013”, a panel meant to inquire into sexual
harassment complaints filed by women employees. Section 134 lists the

70
disclosure framework that directors of companies have to comply with in the
annual reports
16.STARTUP INDIA BENEFIT OF SELF CERTIFICATION-
EASIER COMPLIANCE OF LABOUR AND ENVIROMENTAL
LAWS
Started from 16th
January 2016 the Startup India initiative of government have
rejuvinated the potential of budding enterprenuers. Innovation being the heart
and soul the government has set criteria for an entity that can be recognised as
Startup.
Vide G.S.R. 127 (E) DATED 19th February 2019 notified by DPIIT the
government widening the scope of Startup provided that
An entity shall be considered as a startup(meaning of Startup) if it satisfies all
the following conditions:

71
i. If it is incorporated/registered as any of the followings:
a. Private Limited Company (as defined in Companies Act, 2013).
b. Partnership Firm (registered under Partnership Act, 1932).
c. Limited Liability Partnership (registered under Limited Liability
Partnership Act, 2008).
d. One Person Company (as defined in Companies Act, 2013).
Provided that such entity is not formed by splitting up or reconstruction of a
business already in existence, further it has not completed ten years since
incorporation/registration as above.
ii. Its turnover for any of the financial years has not exceeded INR 100
Crore.
iii. It satisfies any of the following conditions:
 It is working towards:
- Innovation of new products/processes/services or
- Development of new products/processes/services or
- Improvement of existing products/processes/services
 It is a scalable business model with a high potential of:
- Employment generation or
- Wealth creation.
Under the Startup India initiative, eligible companies can get recognised as
Startups by DPIIT, in order to access a host of tax benefits, easier compliance,
IPR fast-tracking & more.
Requiement fof recognition:

72
a) Certificate of Incorporation/Registration and PAN: Incorporation details
such as Incorporation Number, Date of Registration, Permanent Account
Number (PAN), Name of the registered entity (Private Limited company/
Limited Liability Partnership / Registered Partnership Firm)
b) Total No. of directors/partners and details of each director/partner with
respect to Name, Mobile No., Email ID and complete address.
c) Entity details with respect to Industry, sector and category in which it
deals.
d) Details of Authorized Representative ( Name, Designation, Mobile No.
and Email ID)
e) Number of Employees including founders.
f) Whether any awards/recognition received by the entity? if yes, need to
upload document with respect to award/recognition received.
g) What is the problem the startup is solving? It needs to be explained in
maximum 250 words.
Brief about the entity with details on the problem solved, solution
provided, uniqueness, and revenue model adopted
h) How does your startup propose to solve above mentioned problem? It
needs to be explained in maximum 250 words.
i) What is the uniqueness of your solution? It needs to be explained in
maximum 250 words.
j) How does your startup generate revenue? It needs to be explained in
maximum 250 words.

73
k) Links or upload additional document to support your application. (eg.
Website link, Videos, Pitch Deck, Patents, etc.). It is mandatory to
provide any one.
l) Proof of concept such as pitch deck/ website link/ video (in case of a
validation/ early traction/ scaling stage startup)
Easier compliance benefit:
a) Compliance with Labour & Environment Laws: In order to reduce the
regulatory burden on Startups, it has been allowed to self-certify
compliances with certain labour & environment laws for a period of three
years from the date of incorporation.
In respect of labour laws no inspection will be carried out unless they
receive a credible& verifiable complaint of violation, filed in writing and
approved by at least one level senior to the inspecting officer.
Relief in following Labour Laws:
o The Building and Other Constructions Workers’ (Regulation of
Employment & Conditions of Service) Act, 1996
o The Inter-State Migrant Workmen (Regulation of Employment &
Conditions of Service) Act, 1979
o The Payment of Gratuity Act, 1972
o The Contract Labour (Regulation and Abolition) Act, 1970
o The Employees’ Provident Funds and Miscellaneous Provisions Act,
1952
o The Employees’ State Insurance Act, 1948
Relief in following Environment Laws:
o The Water (Prevention & Control of Pollution) Act, 1974
o The Water (Prevention & Control of Pollution) Cess (Amendment) Act,
2003

74
o The Air (Prevention & Control of Pollution) Act, 1981
The process for easier compliace:
Self Declaration at Shram Suvidha Portal:
1. First, Register at Shram Suvidha Portal (Please ignore if you are already
Registered)
2. Login into Portal
3. After successful login, Click link "Is Any of your Establishment a Startup?"
17.THE SELF-CERTIFICATION-CUMCONSOLIDATED
ANNUAL RETURNS SCHEME FOR VARIOUS SHOPS/
ESTABLISHMENT/FACTORIES (MAHARASHTRA)
With the objective to reduce visits of the Government officers / inspectors for
inspection of Shops/ Establishment / Factories which opt for the scheme without
compromising on safety, health, welfare and social security of workers
/employees and allow them to submit consolidated annual returns in lieu of
multiple returns under various labour laws the Government of Maharashtra vide
GR No. MISC- 2015/CR- 76/Desk Lab-9 introduced the “self-certification-

75
cum-consolidated annual returns scheme available for all Shops / Establishment
/ Factories in the State and any occupier /proprietor /partner/ director/ employer/
principal employer/ contractor except those with industrial activities covered
under the Maharashtra Factories (Control of Industrial Major Accidents Hazards
) Rules , 2003 or the factories in which there is use, storage, handling or
processing of hazardous chemicals, which are toxic or highly inflammable or
explosive or processes where in such a substances are likely to be generated or
discharged.
Any occupier / proprietor / partner / director / employer/ principal employer /
contractor desiring to join the scheme shall submit an application with an
undertaking in the format prescribed as below along with the required amount
of security deposit to the Regional Self-certification Committee concerned.
APPLICATION FORM
From M/s.
To,
The Additional Commissioner /
Deputy Commissioner of Labour,
Government of Maharashtra
(of that Division)
Sub : Application for registration to be covered under Self
Certification -cum- Consolidated Annual Return Scheme under
laws being implemented by Department of Labour as per the terms
& conditions of the Scheme.
Sir,

76
I / we have gone through the above said scheme and have understood the same.
I/we wish to be covered under(subscribe for) the said Scheme. As such I / we
request you to kindly issue me / us necessary registration under the same.
The necessary information and documents, as required under the Scheme, are
enclosed. I / we undertake to abide by all terms and conditions of the Scheme.
It is also certified that I / we am/are competent and duly authorized to make any
statement or provide any information to any Central / State Government agency
on behalf of this shop / establishment / factory named ____________________
__________ ______ _______________
Kindly issue the necessary approval at the earliest.
Yours Faithfully,
[Name and Address of the
occupier/proprietor/partner/d
irector/employer/ principal
employer/ contractor]
Encl:- Authority Letter
LIST OF DOCUMENTS TO BE ATTACHED
1) Name & address of the establishment
with e-mail, telephone No. mobile/fax
No. etc. with registration under shop /
factory, partnership/ occupier / proprietor
/director /employer and others.
2) No.of workers employed i) Permanent ii)
Temporary iii) Contract labour iv) Casual
labour

77
3) Registration No. and date alongwith
attested copy of registration under the
Factories Act, 1948 if applicable.
4) Registration No. and date along with
Bombay Shops & Establishment Act,
1948 if applicable.
5) Registration No. and date along with
Contract Labour (Regulation &
Abolition) Act, 1970 if applicable.
6) Licence No. and date under the Contract
Labour (Regulation & Abolition) Act,
1970 if applicable.
7) List of raw materials used and products,
if the factory is manufacturing or
processing unit
8) Details of bank draft attached
9) Name and address of the shops
/establishment./factory with telephone/
mobile/fax nos. and e-mail address if any.
10) Name and address of the
occupier/proprietor/ partner
/directors/employer/principal employer
/contractor with telephone/mobile/fax
nos. and e-mail address if any.
11) Name and residential address of
the manager or person responsible for
supervision or control of the shops

78
/establishments/factory with
telephone/mobile/fax nos. and e-mail
address if any.
12) Registration No./License No. &
Date of commencement of the
shops/establishment/ factory
13) Nature of industry/ activity –
manufacturing, Trading, Services .
Signature of Authorised
Person.
Place :
Date
UNDERTAKING
[To be filed by the Occupier/Proprietor/Partner/Director/Employer/Principal
Employer/Contractor on a Non-Judicial Stamp Paper of Rs.100]
I/we___________________________S/o.Shri.__________________________
R/o__________________________________________________________and
Occupier/Proprietor/Partner/Director/Employer/Principal Employer/Contractor
of M/s. _______________________________here by state as under.
That I/we have applied for grant of coverage of shops/establishment./factory by
the name of
______________________________________________________________
situated at [complete address of the shops/factory/establishment.] the Self
Certification-cum-Consolidated Annual Return Scheme of the Labour

79
Department, Government of Maharashtra as notified vide Resolution No. No
MISC-2015/CR 76/Lab-9, dated 23rd June, 2015.
3. That I/we have gone through the Scheme and have fully
understood the contents of this Scheme and undertake to abide by
the same.
4. That it is declared that I/we are complying with and will continue
to comply with all provisions of labour laws covered under this
Scheme.
5. I/We agree that in case of violation detected in my/our shops/
establishments/factories under the labour laws covered under the
scheme during Self Certification period, I/We will be responsible
for the consequences . If any violation are detected during the
course of inspection, it will be processed as per the provisions of
the respective labour laws.
6. I/we shall not engage or permit to engage any child labour and
bonded labour in the my/our establishment /shop / factory.
PLACE :
DATE:
DEPONENT.
VERIFICATION
I/we, the above named deponents do hereby further solemnly affirm that the
contents given above are true and correct to my/our knowledge.
PLACE :
DATE :
DEPONENT.
Enc.1. Annexure - I Application form, 2.. Annexure - II [List of documents]

80
Once submitted the Regional Self-Certification Scheme Committee will
scrutinize the application within 15 days of its submission and allot a
registration number to the respective occupier /proprietor/ partner/ director/
employer/ principal employer/ contractor and this number shall be quoted in all
correspondence under the Scheme.
Validity of the Scheme :
Once the occupier / proprietor / partner / Director / employer / principal
employer / contractor has opted for the Scheme, it shall be valid for a period of
5 financial years. After 5 financial years, the occupier / proprietor / partner /
Director / employer / principal employer/contractor may renew the registration
under this Scheme for further 5 financial years by submitting a fresh application
with the required security deposit and fees accordingly. However, the employer
will be free to withdraw from the Self-Certification Scheme at any time before
completion of 5 years by informing the Self-Certification Scheme Committee
concerned in this regard. In such cases of premature withdrawal from the
Scheme, the Security deposit paid at the time of registration will be forfeited.
Coverage under the Scheme :
The Scheme will cover following labour laws :
ii. The Payment of Wages Act, 1936 and the
Rules made there under,
iii. The Minimum Wages Act, 1948 and the
iv. The Contract Labour [Regulation &
Abolition] Act, 1970 and the Rules made
there under,
v. The Maternity Benefit Act, 1961 and the

81
vi. The Payment of Bonus Act, 1965 and the
Rules made there under, vi. Payment of
Gratuity Act, 1972 and the Rules made there
under,
vii. The Equal Remuneration Act, 1976 and the
viii. The Maharashtra Workmen's Minimum
House Rent AllowanceAct,1983 and the
ix. The Factories Act, 1948 and the Rules made
there under
x. The Maharashtra Shops and Establishment
Act, 1948 and the Rules made there under,
xi. The Inter State Migrant Workmen
[Regulation of Employment and Conditions
of Service] Act, 1979 and Rules, 1980 and
the Rules made there under,
xii. The Beedi & cigar Workers (conditions of
Employment) Act, 1966 and the Rules made
there under,
xiii. The Motor Transport Act, 1961 and the
Rules made there under, xiv. The Child
Labour (Prohibition & Regulation) Act,
1986 and the Rules made there under,
xiv. The Sexual Harassment of women at work
place (Prevention, Prohibition and
Redressal) Act,2013.
xv. The Bonded Labour System (Abolition) Act,
1976.

82
Filing of Self-Certification-cum-Consolidated Annual Returns :
After getting enrolled for the Scheme, the concerned occupier/ proprietor /
partner / director / employer / principal employer / contractor shall file
SelfCertification-cum-Consolidated Annual Return in the format prescribed
along with required supporting document / information.
Format:
FORM FOR SELF CERTIFICATION -CUM-CONSOLIDATION ANNUAL
RETURN TO BE SUBMITTED BY OCCUPIER / PROPRIETOR / PARTNER
/ DIRECTOR / EMPLOYER / PRINCIPAL EMPLOYER / CONTRACTOR
FOR COMPLIANCE OF LABOUR LAWS
I/we , Mr./Mrs./Miss._____________________________ hereby certify that
I/we am/are the Occupier/Proprietor/Partner/Director/Employer/Principal
Employer/Contractor of the shops/establishment/factory whose identification
and general details are as follows. I/we hereby certify that my/our
shops/establishments/factories have fully and correctly complied with all the
labour laws under the Scheme and the status of compliance of following labour
laws and annual return of my/our shops/establishments/factory during the year
____________________ is as under. (list our the labour laws)
Consequences of submitting false information in the Return :
The occupier / proprietor / partner / director / employer / principal employer /
contractor if found at any stage submitting false information in the
SelfCertification-cum-Consolidated Annual Return, he will be asked to submit
justification/ explanation to the concerned Regional Committee and the
Regional Committee will decide whether the registration under the Scheme
need to be cancelled/suspended. If at a later stage, returns are found to contain
false information, the occupier / proprietor / partner / Director / employer /
principal Employer / contractor will be liable for legal action under relevant

83
provisions of the laws. The decision of the State Level Committee in this regard
shall be final.
18.ESSENTIALS OF EMPLOYMENT AGREEMENT
Employment agreement is an agreement that is entered into between two
parties, i.e. the employer and employee. It is a document that pacifies the
responsibilities and duties expected of an employee. It also described the profile
of the job and the title. The document ensures that the employee knows his
place in the organisation and what is expected of him. Employment agreements
should be created in a way that is just and fair for all the employees. If this is
followed, employees will do their tasks and responsibilities well and without

84
any negative emotions toward their employers. Usually employment contracts
contain only vague references to the "policies and procedures to which the
employee will be bound". The employer should provide the employee with all
of the company policies and other documents that relate to the contract or are
referred to in the contract.
Following are the usual contents of an employment agreement:
1) Name of the parties involved
2) Starting date of employment
3) Title and description of the job
4) Location of work
5) Hours of work
6) Probationary period
7) Salary
8) Restrictive terms
9) Holidays
10) Other information like deductions, permissible expenses, notice
period etc.
The employment agreement may be beneficial for both parties because they will
know what responsibilities they are getting in to. On the part of the employees,
they are assured that they will be able to get compensation as an exchange for
the work they rendered. Employees will also be clearly informed about the
things that employers are expecting them to do. On the part of the employers,
they are assured that their employees are well informed of the things that they
should do, as well as their obligations for the company. Through employment
agreement, employers will not be left immediately by their employees without

85
providing them enough time to seek for someone who will take the latter’s
place.
Certain important issues that need to be taken care of before finalizing the
employment agreement are given hereunder:
• Identify the long term requirement of employees.
• Identifying the workmen and employees not covered under definition of
workmen, respectively.
• Local laws of the State should be borne in mind while drawing up the
contracts
• Issue appointment letters which clearly define the employment terms
and conditions.
• Employment contracts, where necessary, should be put in place with
clauses for wages, benefits, non compete, confidentiality, term,
termination etc.
• Depending on the requirement, use fixed term contracts for workmen.
• The terms and conditions of the employment should be clearly
explained to employees before execution and should be drafted without
any ambiguity.
A detailed checklist for an Employee Agreement is given hereunder:
1. Details of employment
a. Full name of employer and employee
b. Address of employer
c. Place of work of employee, and, where the employee is required or
permitted to work at various places

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