Manager - Human Resource
Korgaonkar K A
Payroll, Domestic Inquiry, Administration,
+5 Others

I work in a advertising firm and the employee strength is 25 as of now and we have been told by the inspector to maintain certain register as per shop & establishment act. We have the process online so is it this compulsory to maintain registers? Plus we do not pay any overtime salary for people waiting back late bcoz our industry requires end moment changes.So is it compulsory to maintain registers if we have the process online? Pls suggest?
I have been asked to maintain
Form J, Form M,Form N, Form II A, & shop inspector Visit book
15th February 2014 From India, Mumbai
Dear Richa,

All records need to be maintained as per respective act. but as understanding the today's world, law has given some substitute for the same, which are given below.

1) As you said, you are processing many things online. so, you may get the exemption certificate for electronic records from labour dept., in that case, you can maintain all records as per computerized which is approved by d by Labour commissioner. (Generally approval gets on Form II under minimum wages act.) no need to maintain the manual register once you gets the Exemption Certificate.

2) Or you may maintain the manual register of Form II, which is having the all necessary details in one register, so, no need to maintain rest of other registers.

3) As you said, you not paying the OT or its periodical wise, then please note that, if your not paying OT or not deducting the any fine, advance etc. then too you have maintain the records showing as "NIL" for respective month.

I hope, you got the satisfactory answer on your all queries.


Tushar Swar
15th February 2014 From India, Mumbai
Dear Thakkar_richa,
The Inspector who visited your establishment is an inspector under the Bombay Shops and Establishment Act.
He has rightly asked you to maintain the registers as listed in your post.
You said, you have on line process. If your on line process out put is as per the format as prescribed in this Act or any other applicable laws to you, you need not to maintain separate registers which are readily available in market. However, you need to take permission to maintain such registers in electronic form.
As regards to overtime salary, you are liable to pay overtime salary double the rate and also maintain overtime register.
Tomorrow if some other inspector visits you under any other law, he will ask you to comply the requirements as applicable to you under his jurisdiction. To you it seems PF, ESI, MLW, PT, MW, Bonus, Gratuity Acts are applicable.
15th February 2014 From India, Mumbai
Hi, Tushar,
Thank you so much for your help.
I have one more doubt. I had read that if any employee works for more than 48 hours a week we have to pay OT. The management is not ready to pay any OT plus as per law I know there should be 21 annual leaves but we just have 12 annual leaves and 12 public holidays. The management is not ready to change. Our working days are-Mon to Friday (8hrs) and Saturday (5 and half hours) and 2 Saturday is a weekly off.
We will face any problems? Pls suggest?
15th February 2014 From India, Mumbai
Hi Korgaonkar K A,
The management is not ready to comply to any act/laws .
We just have 2 employees whos salary is less than 10,000 .
For PF- we have all employees salary more than 6500
For ESI- there are 2 employees whos salary is less than 10,000. So i understand ESIC is applicable to them
For PT- we deduct PT
Minimum Wages- we have all employees have salary more than 7000. So we comply to the minimum wages
For Bonus- We pay annual bonus to those employees having salary less than 10000. We give them one month salary as bonus
Other act management not ready to comply
15th February 2014 From India, Mumbai
Hi Korgaonkar K A,
Pls suggest and help me if I am wrong. I want to comply to the Law but as it is a start up firm the management does not want to.
For OT wages all employees get a com off for waiting late but dont get extra salary. The comp of is adjusted in his leaves
15th February 2014 From India, Mumbai
Dear Richa,

Sorry to say that, Your management treating as per their convenience, at time of Bonus paying they keep finger on laws & rest of the other payment, they doesn't want to follow. like bonus they are paying less than 10k salary, Then why don't they pay to all.

This practice is not good & i seen that, most of small scan industries are not bother to follow the all rules. which are effecting their profitability.

Anyway, in such cases, i would advice on you to don't show the records of OT saying there is nothing any OT & you have to manipulate the attendance data accordingly, which should not show any extract work.

I know, my suggestion is to cheat.but if you don't want to caught in any legal process. so, this is the solutions.

Regarding the Leave, you have to give 21 days leaves for working of 240 days on prorate basis, there is nothing any substitute for the same.

I would suggest to conveyance to your management that, if they cant follow the 100% compliance, then at-least follow 80%. it may reduce the gravity of offense.


Tushar Swar
15th February 2014 From India, Mumbai
Dear Tushar, Thanks for your reply .Ya i understand the law and I know the compliance of is important but even I cant really do anything but thank you so much for helping.
15th February 2014 From India, Mumbai
Dear Richa,
As per the National Holidays and Festivals Act - Company need not give 12 Public holidays . as per law only 26 Jan, 01 May, 15 Aug & 02 Oct are mandatory. Instead of 12 public holidays if you want to ensure compliance and at the same time adhere to management policy of not increasing total leaves/holidays - suggest to make 21 days Annual Leave and just 04 days Public Holiday as stated above.
Sometimes, you can apply a solution which is legally viable and adheres to company norms. Hope this helps.
As for the OT - does the 08 hours include breaks ? how many breaks and what is the period of breaks - based on which you can explore options.
Deena Jagasia
15th February 2014 From India, Mumbai
Dear Deena Jagasia, We will surely go with this idea. Thanks a lot. We do have lunch break which can extend upto 30 min to one hour . There is No fixed rule for lunch breaks or tea breaks
15th February 2014 From India, Mumbai
Dear Thakkar_richa,
You need to understand first what are the laws applicable to you and its' features. Do not bother for your management. If your management is willingly making breach of laws, the management is responsible for consequences and not you.However, you should able to give your management proper inputs on compliance of applicable laws and repercussion on non-compliance of it.
From your above quote what I understand that you should up date yourself on labour laws.
15th February 2014 From India, Mumbai
Ya i am aware about alteast certain laws.
1)For PF- The Act is applicable to establishment having 20 or more and it is mandatory to provide to employee having salary(Basic +DA) less than 6500. I meant none of the employees have salary less than 6500. So here PF can be optional. I also understand that few companies provide optional PF
2) For Bonus- Employees having Basic +DA less than 10,000 are covered. We just have 2 employees and we provide them festival bonus but that is not as per Bonus Act.
3)For Minimum wage - There is certain Amount fixed for skilled and unskilled which is around 7800 /- and all the employees have salary more than 7800
Other Acts like ESIC and Gratuity we have not yet complied too.
Pls correct me if I am wrong
17th February 2014 From India, Mumbai
Dear All,
I am also facing same problem of maintaining registers under the Bombay Shop and Establishment Act.Inspector told me that you should inform to Labour office about your online system.But when I visited labour office they told that now there are no any such type of requirement of submit your details to us,
2nd July 2015 From India, Chandigarh
Dear All,
I was also gone through the same and searching for the discussion on same topic. Thanks to Mr. Koregaonkar & Mr. Prabhudesai on this topic.
Avinash K.
31st August 2016 From India, Mumbai
Dear All,
I have come across the problem of not renewing Shop & Establishment Licence of one of our office, where no employee is working but we had taken licence for it.
But unfortunately, we had missed to renew licence, now shops inspector had pointed out the same and given us letter for this. He also told us that we will receive notice from court for not renewing licence for that office.
I just want to know what would be consequence of such notice from court? we are ready to remit penalty but whether this offence is so serious that it will require notice from court or appearance in court by the directors of the company?
Looking forward for reply.
Avinash K.
31st August 2016 From India, Mumbai
Can anyone le us know the procedure for applying the exemption from filing manual registers? I also have an electronic form of attendance in HRMS module.
18th April 2017 From India,
Please share All the forms & register maintain under Shop & Establishment Act.
23rd September 2017 From India, Jalalpur
what is the name / no of the register under bombay shops & estt act
2nd December 2017 From India, New Delhi
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