Hr NewsStatutory Compliance

Points to be kept in mind while conducting Labour Law Compliance

Source | LinkedIn : By Seran senguttuvan.MN

First understand what all Labour Laws are applicable to the organization (mainly manufacturing unit)

Then what all to check imp points under various Labour Law:

1) Factories act:
A) Valid Factory License and its renewal on time.
B) Annual Returns submitted on time. Check details filled in Returns are properly mentioned against with it’s supporting.
C) Half Year / Monthly returns submitted on time
D) Proper maintenance of Accident Register and timely intimation of accidents to Factory Inspector within 24/48 hours as cases maybe
E) Overtime wages are paid at double rate of ordinary wages
F) All the Registers are maintained and kept upto date.

2) Contract Labour Act:
A) Annual Returns submitted by Principal Employer. Half yearly returns submitted by Contractor.
B) PE got the registration certificate and contractor have valid licenses.
C) Wages are paid above minimum wage rates. Proper overtime wages are paid
D) Periodical medical checkup are done for all the contract labour

3) Payment of Bonus Act:
A) Check calculation of bonus paid and paid on time
B) Returns submitted on time. All registers are maintained

4) Payment of Wages Act and Minimum Wages Act:
A) All the registers and records are maintained. Returns under the act are submitted

B) Wages are paid above the minimum wage rate and on time as per the act

5) Payment of Gratuity Act:
A) Check if any employees have completed 5 years of employment, if yes, are they paid gratuity at the full and final settlement.

6) PF Act and ESIC Act:
A) Whether all the workers have been issued UAN no and ESIC card
B) Proper deduction of PF and ESIC made and deposited on time

7) Industrial Standing Orders:
A) Check if Act is applicable to the factory. If yes, whether factory have certified standing orders and it is displayed in English and in local language in all departments of the factory.

8) Industrial Disputes Act:
A) Check if factory have Works Committee and if yes, it meets once in every quarter.

Safety Compliance:
A) All the workers are provided with safety shoes. Workers working under cranes and on height are using Helmet.
B) Fire Extinguisher are in place. No expiry medicines are used in First Aid Boxes.
C) Safety Shoes, belt, helmet are used by workers working on height.

Compliance in terms of number and committees:
1) Welfare Officer is appointed if workers are more than 500
2) Safety Officer is appointed in case of more than 1000 workers
3) Safety Committee is formed in case if Safety officer is appointed
4) Works Committee is formed in case of more than 100 workers
5) Internal Complaint Committee is formed in case of more than 10 workers
6) Canteen Committee is formed in case of canteen service
7) Occupational Health Center facilities in place in case of more than 150 workers and factory is carrying hazardous process.


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