Dear Seniors I am working as AM - HR in a mid size IT Company in Gurgaon (Haryana). Last week one labor officer visited to our Premises & asked for the labour inspection. He asked for lots of documents related to labor compliance like - Leave registers, Wages registers (with salary slips & signature of employees), Register of deductions etc. but We are not maintaining these registers.

I have some queries regarding the same -

1. Is it necessary for an IT company to maintain these documents & registers?

2. My company established since 2005, but we are not registered under shop & the Establishment act of Punjab & Haryana. Is it mandatory for every company?

3. Regarding this inspection, we have hired one consultant & he is charging around 20K for the settlement, which includes his fees & out of pocket expenses. Is it the only way we can settle this inspection? As it is impossible for us to prepare data & registers from starting 2005.

Please provide clarification on the same.



From India, Delhi

Dear Parul,

You should be compliant with the law of the land.

If the Company is not even registered under the Shops & Establishment Act, it means that you are not compliant with the laws.

You should manage the labour inspection as ignorance of law is no plea.

Fir future, it will be better to get a compliance audit done by an external consultant and then become compliant so that this kind of problem does not occur in future.

You should impress upon the Management that they should invest in being compliant with the law as the savings they do now will have to be paid as penalties and fines as well as loss of goodwill at a later stage and the loss shall be in multiples of the savings made.

If you wish we can help you in being compliant with the law to help you avoid such situation in future.


Kind Regards,

Avika Kapoor

Vice President - Operations

Website: Kapgrow

From India, New Delhi
Hi. Immediately register yourself with Shops & Est Dept.
As per the old Act, it is mandatory to maintain manual records in prescribed form. However, through a special application for exemption, you can be EXEMPT from maintaining manual records. You can then maintain records electronically.
Complying with this is extremely important.
Also, this labour officer was from which dept? Was it SHops & Est dept, or labor dept or any other? Accordingly u will have to approach that dept and address and close this issue.

From India, Mumbai
I am based in Mumbai and the consultants usually charge the same. however, u can ask for quotes from 3/4 consultants and take a call. There's no need to manually maintain the registers IF applied for exemption.
From India, Mumbai
Dear Parul,
These are the basic and mandatory compliance to have i.e. Registration under the Shops & Commercial Establishment Act, and maintain records under the Act in addition to Payment of Wages Act, Minimum Wages Act, Leaves, Payment of Bonus Act. If you settle the issue without legal mandatory compliance, it will be repeated again and again. I am sure you must be legally complying with all the provisions and in such case what is the harm in maintaining the prescribed records. You can seek exemption from keeping these manual registers and have computerized one. You can also seek our help in maintaining these records, registrations and settlement.
P K Sharma

From India, Delhi

I understand that IT companies donot enjoy any special status to claim exemption from any labour laws as applicable. There are number of laws governing the labour legislation viz.- EPF & MP Act, The Factories Act, ESI Act, 1948, Contract Labour Act, Shop & Commercial Estt. Act etc.

The main question arises which of the labour laws/ Acts and rules/regulations framed thereunder are applicable to the IT company of the HR official who started this thread.

Shop & Commercial Estt. Act is only one Act. If using power for manufacturing process whether the IT companies are not covered under The Factories Act, ESI Act, EPF & other similar Acts?. What are the number of employees in said company have also not been indicated.

I think above issues will also arise as and when the officials/Inspectors from other Labour Laws departments will visit the unit for verification of records.

In my opinion, HR officials should firstly see and explore as to which of the Labour Laws are applicable to his unit keeping in view the number of employees, nature of manufacture etc. To restrict the maintenance of the records and compliance under Shop & Commercial Establishment Act will, in my opinion, be of no use if it is found lateron that the said IT company is coverable under The Factories Act and other related legislations as mentioned above.

From India, Noida
Dear all
Thanks for clearing my doubts.
My first step will be getting registered under Shop & EST act.
We have 25 employees in the company. We already have PF registration, & we are submitting LWF annually.
Please let me know what other labor compliance is applicable to my Company.

From India, Delhi
You told, obtained PF Registration & LWF registration, I am sure you are are already registered under Shop & Commercial Establishment Act, you have to ask for Registration Certificate under Shop & Commercial Establishment Act with your management and to be renew it on prior. And records & registers to be maintained under wage register as per Minimum Wages Act, Muster Roll, Leave Register, Bonus Register & Bonus Annual Return, copy of salary slip as per wage register. Consult your labour law consultant, he will do such things.
Dilip Nandanwar
For Vidarbha Industries
(Labour Law Auditing, Consulting, Statutory/Legal Compliance, Payroll Outsourcing & Mgmt, Manpower/Staffing and Govt./Rly. Contracting)
Navi Mumbai
Branch Office - LGF-69, Sanskritik Sankul, Zansi Rani Square, Sitabuildi, Nagpur.
Mail Id-
:-c +91- 86555 76111

From India, Mumbai

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