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My wife runs a small garment manufacturing unit in Delhi, She has some employees on her payroll but most of the work force comprises of piece rate tailors those who work on project to project basis and leave when one particular style is over.
Our local labor inspector is asking for 25000 bribe otherwise threatening to challan and drag her into legal actions.
Kindly suggest.
Rizwan Ahmad

From India, New Delhi
Partner - Risk Management
Gopinath Varahamurthi
Mindhour Partner, Ass.professor/adm. Officer,
Senior Hr Advisor And Blogger
General Manager - Hr
Hr, Strategic Development
Private Consultant On Labour Laws


Hi Rizwan,

How many people are working in the garment factory?

It has following applicability:

t applies to factories covered under the Factories Act, 1948. The industries in which ten (10) or more than ten workers are employed on any day of the preceding twelve months and are engaged in manufacturing process being carried out with the aid of power or twenty or more than twenty workers are employed in manufacturing process being carried out without the aid of power, are covered under the provisions of this Act.

So if the no. of people are less than 10 then it does not apply so you need not to worry

About other things, you need to keep in mind:

1. Are you paying them minimum wages? The factories Act has provision for piece wages so there should not be a problem.

2. Are you taking care of following under factories Act

Health- The work condition should not be hazardous

Safety- Enough safety provision should be there

Welfare facilities- Like drinking water, creche for female workers etc

Working hours- 8 hours in a day with over time not more than 10.5 hours

Employment of young persons- Not employed anybody below 18 years

Annual Leave with wages etc.- 1 leave for every 20 days worked

If you are maintaining all records, returns then there should not be an issue.

You may file RTI to the labour department in this regard too

From India, Mumbai

While i agree with all that Govind said below, RTI is not going to make any difference.
People have this myth that RTI will resolve all problems. No it is going to give you nothing in this case.
On to the original problem, in addition to what Govind asked, i would like to know - what is he threatening to do ? What are the non-compliances that he is going to investigate ? What are the requirements that you have not complied with.
Once you give the details, we may be able to help you.

From India, Mumbai

if he is asking for bribe without guiding better get him trapped by anti corruption of police
From India, Hyderabad
gopinath varahamurthi

Really you did get a beautiful appreciation from Shri Govind, however, it is always better to make welfare measures, why not group insurance paid to the employees that will help you in the long run, such welfare measures certainly pay good dividends and good social measures..bribe, is not a question, bribing is the question and that make us do bad things ....
with regards,

From India, Arcot

Hi Rizwan,
pls contact me on 86555 76111 or write me. No need to pay the fees, don't worry. Just I would like to know how related Labour Inspector with PF Act, as Labour Department is different and PF Authority is different.
Dilip Nandanwar
(Labour Law Consulting, Auditing, Payroll Management and Outsourcing)
Navi Mumbai
Br. Off- Nagpur
86555 76111

From India, Mumbai

Greetings Rizwan,

As Mr.Govind has pointed out, if you are on the right side of law then there will be no cause for concern. In my opinion the inspector has observed some lapses in your operation and that is the reason why he is threatening.

Consult a lawyer and express him the observations made by the inspector as you may not be in a position to share such information in a public domain like this.

You are taking about a particular style being part of a project, but the duration of the project is not mentioned. If it exceeds 240 days and if you are covered under the provisions of factories act then these employees need be considered for conferring permanent status.

If the women employees are more than 30 then you need to run a creche.

You need to pay double wages for overtime work performed.

The space available for workmen movement should be as per specifications in the factories act. Generally in small textile units this is violated.

There needs to proper ventilation and lighting.

The women workers cannot be made to work beyond stipulated working hours without obtaining prior permission from the Government.

Like these there are several provisions that could have eluded your attention. This is the reason why you need to consult a lawyer. The bribe sought by the inspector could be much more than a lawyer's fee. It would be prudent on your part to correct the lapses and face the labour inspector's charges with legal support rather than ducking away from it. The course correction will ensure that you are on the right side of law and hence you may not face problems in future.


From India, Madras

Dear friends,

All said and done, a doubt would remain in the minds of Mr.Rizwan as to how the Labour Inspector could harass when "most of the work" is got done thru' the so called 'piece rate' route. It's an illusion that one carries if the job is done thru' piece rate they can get rid of labour act compliances which would ultimately proved to be a wrong notion. Micro, small entreprenuers should be aware and realise that once a premises like a factory exists and workers are carrying out a process considered to be a factory all the related provisions of the Act applies and no escape thru' the piece rate methods for the simple reason that Acts, rules are clear about this aspect. Piece rate method is adopted generally to see optimum productivity is extracted from the workers, cut down costs, to meet deadlines for supply sch. and the entreprenuer need not pay for OBs.under 'time rate' system. It is presumed that Mr.Rizwan might try to avoid PF/ESI/bonus/gratuity/leave and other labour related costs, proper maintenance of records, registers, compliance of various stipulations. But still nobody can prevent the jurisdictional labour officers inspecting a work place, raise violations, issue show cause notices, impose penalties and so on. It's upto the owners to defend themselves based on facts & circumstances within the frame work of law with proper evidences/justifications. We have to accept that while It's also true that despite prevalent elaborate labour legislations in the country workers are exploited in many segments which cannot be justified by saying the organised sector workers enjoys everything and more also.

Country is used to bribing every now and then and there is growing awareness to this menace though many take it for granted as a part of normalcy. We also must accept the fact that "so long as bribe givers exists bribe takers also co-exists". Stop, renounce giving, takers should be branded as anti-social elements and such elements should be treated as outcasts, a "social reformation" a very much need of the day which the future India awaits eagerly. Anything seen on the horizon ?

From India, Bangalore
gopinath varahamurthi

the year 2013 witnessed a lot of changes at the end of the day we appreciate a lot new in our capital we are enjoying a new formation and a new dawn, ofcourse, the rays of sun have never changed, and it saw the new names at Delhi..AAP the newly formed Government enjoyed the new leaf, new avatar, all the Govt. Servants have been put into burn, they are corrupted is the sloga..

The Jal Board in its main stream targetted to the extreme end with cold shivering servants transferred and like a football they are intentionally or unintetionally roll on the ground, the players are different by the time the newly formed AAP. the chief minister Shri Arvind Kejriwal...and its members..

Let us think it over.. what did the Government Servant do?..are they are the authorities playing the game or other political parties, people, self interested ugly people....who are the culprits?...Bribing is the most heinous crime rather than the authorities who are get bribed... unless you are ready to pay to get your work done what else the authorities going to do? case of private industries the bribe is at its highest level with different names, commission, gain, interest of customer, unregulated supply of electronic goods, selling of gas cylinders with high cost in black market, cinema in CDs intentionally manipulating the picture, liquour from known and unknown resources selling of liquour by the authorities by purchasing from canteen to the public at higher cost keeping a margin, medicines at what price?.. thus first let we say bribing is the heinous and not the bribed ...the most is the casteism based bribe, sanctioning of loan, house allotment, land purchase, education and scholarship, organ transplant, employment, what not we left tospeak...

First let us stop bribing ...........

in case there is avoidance deliberately from welfare measures to the employee it is the heinous crime ...

From India, Arcot

Dear Rizwan Ahmad,
Since you have mentioned that your wife runs a small garment manufacturing unit in Delhi and the Local labor inspector is asking money from your wife.Fortunately the solution to the such problems is likely to see the light of the day. Sh Gopinath has rightly mentioned in his mail that the corruption is rampant in almost all the departments of Govt of NCT Delhi and we need to fight it out collectively.In continuation to his mail, I would like to inform you that Sh Arvind Kejriwal, the CM of Delhi has recently launched a helpline to nab corrupt officials.The anti-corruption helpline no. is 011-27357169, which will be opened from 8 AM to 10 PM on all days where you can lodge a complaint.
BS Kalsi
Member since Aug 2011

From India, Mumbai
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