Disadvantages Of ESIC And PF From COMPANY\'S POINT OF VIEW. - CiteHR
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Dear friend
If your company wishes to continue its business; it HAS TO COMPLY with the labour laws.
There is no question of CHOICE; or deciding of advantages or disadvantages.
Such matters should be reported to the Authorities, as a whistle-blower; and such erring MDs and owners should be brought to book and punished.
You must have seen the remarks of other members.
It is HORRIFYING to know that such heinous violations are being committed by an IT company.
Regards.
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Dear Sh. Raj Kumar Hansdahji,

I generally read your comments in this cite with too much attention and I feel that you have very rightly expressed your views. But I must submit again that the level of compliance of labour laws in India is very very poor. As a result, the poor workers are not in a position to get their due legal rights as laid down in various labour laws including social security laws.

The member who initiated this thread has now stated that their principal employer has divided the establishment in number of units and hence their unit is not coverable under different labour laws. I may bring to your notice that such like tactics are adopted by employers to avoid implementation of labour laws. However, I want to inform that that the bifurcation of unit into various parts will not help much because there are number of court judgments in respect of EPF & Misc. Prov. Act as well as ESI Act, 1948 vide which Hon'ble courts have clubbed different units as one for implementation of labour laws on the basis of facts of unity of purpose, unity of functioning, unity of finance, transferability of workers from one unit to another and continuity of manufacturing process etc.

If it comes into the knowledge of above authorities that there was artificial division of unit and in actual the same constituted as one, the same will be coverable, in my opinion, from that date when all the units total employed minimum numbers as required in above enactments.

Further I feel that HR officials working in the factories/establishments are employees and have to follow the orders of their owners and therefore have very little option with reference to ensure the strict compliance of statutory laws.
Dear Harsh
I totally agree with your views.
There are constraints in ensuring compliance; especially for fresh HRs who lack experience and strength of commitment.
However, our endeavor should be to GUIDE THEM IN THE RIGHT PATH.
These are the formative years for the young HR professionals, and we should not let them acquire a complacent ("chalta hai") attitude that will affect their whole life and career, but enable them to pick up the right knowledge and attitude.
Even if they are not able to ACT in the right way due to lack of authority, they should know and be aware of what is right and legal.
Warm regards.
Respected Raj Kumar SIr,
I know that company is not going on a correct path regarding IR laws but even if i want to change the current policies within the organization that is not possible for me because, as Harsh Sir Said it is already very difficult for me to start this new trend all of a sudden in a company working from 56 years and all over that I am the whole sole person in HR Department with only 3 months of experience. No one is there to support me for the same. But THANKS A LOT for understanding my problem and helping me.
I will keep your words in mind and will definitely not acquire a complacent ("chalta hai") attitude. I'll still put my all efforts with my boss to let him follow all the laws that are necessary and compulsory. Even if they do not agree, at least i can keep these points in mind for my better career.
Thanks and Regards
Tanay Singh Kulshreshtha
HR Executive
Respected Harsh SIr,
Thanks a ton for understanding my actual problem. Yes that is very difficult for me to suddenly put any change in company's policy or to make them follow laws and regulations but i'll try my level best to bring the change.
The only questions that arises in my mind is:
WHAT IS THE WAY THROUGH WHICH I I CAN CONVINCE MY BOSS TO MAKE A SOLE COMPANY AND MAKE HIM START FOLLOWING THESE PRACTICES?
Harsh Sir and respected seniors please help me on this if possible...
Thanks and Regards
Tanay Singh Kulshreshtha
HR Executive
Dear Kulshreshthaji,
In this thread, we have shared with you some of our experience in respect of labour laws particularly EPF & ESI. For you kind information I am enclosing herewith a copy of judgment of Hon'ble Supreme Court of India, which is very relevant in the matter as discussed by you. As suggested by senior members in above remarks, I hope you will form your definite opinion, and will work for tension-free environment in your organisation by making compliance of all statutory laws.

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File Type: docx Hon'ble SC Judgment ON EPF CLUBBING 26-11-2011.docx (33.4 KB, 31 views)

Dear Tanay,
As u mention above that you start ur career recently with 3 months so its natural to face difficulty in any org and u r not wrong anywhere. I suggest always try to learn new things everyday thru routine work or by website. There is so many things in HR which need time to learn and understand.
Always read factory act and other acts to understand HR function and basic requirement of statutory compliance in org.
Dear Harsh SIr,
Thanks for the Reference you provided, i.e. Judgment of Hon'able SC regarding clubbing of two different entities.
With the above Example i came to know some points,
1) All the Three Entities are working under same Director. One Entity is having another Director, but she is from the same family.
2) All four companies are having Financial Integrity with each other.
3) Employees are swapped within the organization
4) They are using Different letter heads but with same Contact No and Gram No.
I guess these points are enough, along with the above example to let me explain my boss the future consequences.
Thanks Harsh sir and all Respected seniors in helping me sorting out this matter.
Regards
Tanay singh kulshreshtha
HR Executive
Dear Sh. Kulshreshtha,
After reading your thread, I feel 'Gimmicks' would not amount to a unprofessional or impolite word if I use here your higher ups have resorted to. Gross violation of the laws enacted for welfare of employees is not only a penal offense but it is a sin morally. Please persuade your higher ups to stop these unfair practices and resort to the unavoidable implementation of these statutes ASAP.
Regards,
Lalit Thakkar

Dear
In such a case , you need not to educate your management. Just give a tip of information to the ESI, PF department. They will give the PROS N CONS to you r management if not complianced with the Act.
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