Kvjraghunath
Hr Manager
Anindyahcc
Service
Joyneo05
Project Implementer
Survagya
Hr Management, It And Compliances
+7 Others

Thread Started by #mamta agrawal

Hi,
If a company is having shop & establishment Act & After some year, company started its new manufacturing unit with 15 Employes (including Worker) . suddenly its merged both unit now total employee strength of this unit become 30 (including workers) , now 6 month is over n this comapny is not having factory act , ESI Act & PF Act...... So now as a HR i have to proceed further , so i wanna to know how to proceed further for these 3 acts?? is there any penalties ?? should i contact factory inspector ???
Please Seniors help me out in this situation asap as i dont hv experience in statuory compliances .....my email ID is
Regards
Mamta Agrawal
12th September 2010 From India, Mumbai
Mr. Mamta Agrawal,
You have to take both Factory as well as Shop & Establishment registration.
and the same time you have to get PF registration, but for ESI if your factory & office situated with in the esi covered area or not just verify.
for more details please see the link KVJ RAGHUNATH: LABOUR LEGISLATIONS
KVJ Raghunath
<link outdated-removed> ( Search On Cite | Search On Google )
9701966688
12th September 2010 From India, Vijayawada
Mr. Raghunath, Ur website is very awesome and very useful to many members.......................thanx for sharing it.........
12th September 2010 From India, Hyderabad
Mr. KVJ Raghunath,
Thanks For Your reply . I agree with your responce but this company is 1.5 yrs back established . Nw my query is that this company is having 30 employees with more than 10 HP power supply in MIDC area.....is there any offence or penalities ??? In this case how to apply for factory act & PF Act....should we first search for factory inspector ...or before it we hv to do necessary documentation ??????
Regards
Miss Mamta Agrawal
13th September 2010 From India, Mumbai
Mr. vsyamprasad , I want your view also in this regards as U r ESI Inspector Regards Mamta
13th September 2010 From India, Mumbai
Your company is establshed 1.5 yrs back as you.
your establishment will be coverable under ESI from the date, your establishment has attained the no. of employee 10 drawing wages upto Rs. 10000/- per month.
You have to pay the ESI contribution from the date it is applicable to your establishment.
Your establishment will be coverable under PF from the date no. of employee reached to 20 in your establishment.
Dinesh P. Rajbhar
Consultant
13th September 2010 From India, Mumbai
Dear Mamta,
First You have to approach the Concerned Area SSO(Insurance Inspector) or the Regional Office.. along with Form-01 - Registration form under ESI,all the columns are self explanatory only.......You have to submit the Form alongwith all documentary evidence......... after alloting the ESI Code No., u have to comply under ESI as per provisions, in case of any specific queries u feel free to call me on 09443434313.........
Please act speedily, since unnecessary u have to borne interest and damages for late compliance.............
Hope i clarified ur doubt..
13th September 2010 From India, Hyderabad
Mr. VSP ,
IS Concerned Area SSO(Insurance Inspector) will be factory inspector ??? can we approach the Concerned Area SSO(Insurance Inspector) or the Regional Office For ESI before factory act since we dont hv factory act till now .
Regards
Mamta Agrawal
13th September 2010 From India, Mumbai
No....No.... ESI SSO will be different from factory inspector......

First U apply for registration under Factory act, duly applying for licence from the Office of the Inspector of Factories....i hope its little lengthy procedure, which u must face it.....

There after only.........u have to cover under ESI with an evidence of manufacturing of unit.........

Otherwise, as u told u are covered earlier under Shops & Estt. act., till u get the factory license, u can approach the regional authorities with the evidence of shops & estt. registration and since ur unit has crossed 20, u can apply for ESI Code no. based on the shops & estt. act........

Due to the recent amendment in the ESI Act, the concept of 'power' has deleted under the definition of Act.......Only ESI will be concern of 'some manufacturing' and '10' persons are working in the premises or not......

Hope u understand the point............as per my perception i have given this suggestion.....u can go ahead further accordingly..........
13th September 2010 From India, Hyderabad
Dear Mamata,
Please find attached few documents regarding PF, ESIC and labour laws. I have collected it from this forum only.
Request you to kindly go through similar post. U can get lots of information apart from this as well.
Most of these documents have been downloaded by me from this forum only.
13th September 2010 From India, Bangalore

Attached Files
Membership is required for download. Create An Account First
File Type: zip New Compressed (zipped) Folder.zip (5.66 MB, 1593 views)

As I understand:
1. Your firm was registered under the Shops & Establishments Act. Now your Company has started a manufacturing unit and has merged it with the establishment which had been registered under the Shops Act.
From what you have stated, it is very clear that you will have to apply for registration under the Factories Act since manufacturing activity is happening in your unit.
Irrespective of whether you are covered under the Shops Act or the Factories Act, provisions of ESI & PF Acts, a also other Labour laws will continue to apply to your Co. The only major shift will be coverage under the factories Act.
Trust I have answered your query.
For any further cleraification, please feel free to call me on my Mobile: 09717726667 or contact me on my email:
Best Wishes,
Vasant Nair

13th September 2010 From India, Mumbai
Dear mamta
if ur company is merged and earlier u were covered under shop and establishment Act now in this case u have to submit ur shop and establishment license to concerned labour department and have to apply for license under the factories Act.
13th September 2010 From India, Solon
"this company is having 30 employees with more than 10 HP power supply in MIDC area....."
says Miss Mamta Agrawal
But to my knowledge, units in MIDC area are not covered under the Shop and Establishment Act.
Kindly correct if this is wrong.
thanks.
14th September 2010 From India, Mumbai
Dear Mamta,
I have gone thorough all the post, and every one said correct.
I feel you better hire some labour consultant, who will do laision with all the concerned departments for your organization, and do all the necessary registeration etc. for your company as per the different Acts applicable in your state. Because, there is also some other registrations required beside Factory Act, ESI and EPF etc., as per the laws governed in your state/Municipal Limit.
regards,
Bipender Gupta
14th September 2010 From India, Delhi
ESI Act, EPF Act and Factory Act all these are Separate Depts. And thus for the coverage under these you have to go separately.you may go for coverage under these Act simultaneously. Dinesh rajbharConsultant9322503549
14th September 2010 From India, Mumbai
hi could we deduct pf below minimum wages.also tell me that could we bifurcate minimum wages in (basic+ da+ hra) for pf deduction
15th September 2010 From India, New Delhi
You can divide the minimum wages into different allowances, but the gross rate should be equivalent to the minimum wages. Moreover, as stated by you on both Basic and DA, pf deduction is applicable.
Create the allowances in such a manner, where you can justify to the authorities that you are correct. (say 10% of gross is basic, cannot be justified)
Bipender Gupta
15th September 2010 From India, Delhi
It is not gross wages that should be equal to minimum wage. It is Basic & DA which should be equal to minimum wage. For purposes of PF deductions, it will have to be on the statutory minimum wage .
Vasant Nair

16th September 2010 From India, Mumbai
PF is deducted on Minimum Wage. If you bifurcate the statutory minimum wage into Basic, DA, HRA, then the basic and DA will be less tan the minimum wage. That would be incorrect.
16th September 2010 From India, Mumbai
Dear Mr.Nair,
You refer to the term minimum wages.
Can you please suggest under which section of the PF Act is the term "minimum wages" defined?
The term basic wages has been defined which clearly states what should be included and what should not be included.
Section 2(b) defines basic wages.
Section 6 provides for % contribution of Basic Wages + DA + all retaining allowances.
Am I missing something?
Thanks and regards,
Devarajan
18th September 2010 From India, Mumbai
Dear Sir,
What's the mean of 7QA in PF department.
If a company is having shop & establishment Act & After some year, company started its new manufacturing unit with 15 Employes (including Worker) . suddenly its merged both unit now total employee strength of this unit become 30 (including workers) , now 6 month is over n this comapny is not having factory act , ESI Act & PF Act...... So now as a HR i have to proceed further , so i wanna to know how to proceed further for these 3 acts?? is there any penalties ?? should i contact factory inspector ???
Please Seniors help me out in this situation asap as i dont hv experience in statuory compliances .....my email ID is
Regards
Mamta Agrawal[/QUOTE]
29th September 2011 From India, Kanpur
Dear Sir,
Pls give me u email ID
If a company is having shop & establishment Act & After some year, company started its new manufacturing unit with 15 Employes (including Worker) . suddenly its merged both unit now total employee strength of this unit become 30 (including workers) , now 6 month is over n this comapny is not having factory act , ESI Act & PF Act...... So now as a HR i have to proceed further , so i wanna to know how to proceed further for these 3 acts?? is there any penalties ?? should i contact factory inspector ???
Please Seniors help me out in this situation asap as i dont hv experience in statuory compliances .....my email ID is
Regards
Mamta Agrawal[/QUOTE]
29th September 2011 From India, Kanpur
Dear Mamata,
Donot worry. People knows everything while they work. First you have to get the Factory Plan approved by the directorate of factories. For this you may take help of some technical person for making the plan. For this apply through FORM 1 of Factory rules. Then apply through Form 2 for Registration and grant of Licence. You may meet with the factory inspector of your region and he will help you.
For PF and ESI met with the respective inspector of your region. Donot get tense. I assure you they will guide you in all the matters.
Regards
Anindyo
8th June 2015
Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)





About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™