We are a small software and hardware technology company with 15 employees in 2010 to 21 employees now. Last year we were served with factory act penalty for not taken a license and accordingly took a license by hiring a consultant. He was a shame. He did not file annual return under factory act and has not initiated any activity on ESIC front despite a clear instructions to regularise and comply with all laws since 2010 as applicable.

Our administration person ran around and at least got the PF work done and now we pay PF for 4 employees (under 15000). ESIC work is stalled as the required login and password is not being made available by him. Now we have fired him and he goes out with a string of threats of retribution from the concerned authorities as he has "contacts".

Also we do not maintain any records of employees time or attendance as we have flexible time. We do not maintain leave records also ( in the format required by factory act, which we are told is highly complicated). Some 15-16 registers are required to be maintained under factory act, as per the consultant. We have none.

We want to comply and are ready to pay whatever is required as per law. What can be done?


Thanks in advance from a worried employer.

From India, Ahmedabad
Labour Law Index

So follow these steps :-

1) Under rule 107 of Gujarat Factory Rules :-

The manager of every factory shall furnish to the Inspector or other officer appointed by the State Government in this behalf the following returns, namely :

(1) Annual return.- On or before the 1st February of each year, an annual return in duplicate in Form No. 24 relating to the following matters:-

(a) average number of workers employed daily and normal hours worked per week ;

(b) leave with wages ;

(ba) number of discharged or dismissed workers ;

(bb) wages in lieu of leave ;

(c) Compensatory holidays;

(d) Canteens in the case of factories wherein more than 250 workers are ordinarily employed ;

(e) crèches in the case of factories wherein more than 50 women workers are ordinarily employed

(f) Shelters, rest rooms and lunch rooms in the case of factories wherein more than 150 workers are ordinarily employed.

Half yearly return.-

On or before the 15th July and 15th January of each year, a half yearly return in duplicate in Form No. 25;

Penalty : Under section 92 of act, Rs 100000 or 2 years of imprisonment or Both. For any contravention of Act or rules. See website below for every thing on factory act.

2) Suggestion:-

a) File all pending return.

b) Ensure all safety, welfare and other requirement of act are fulfilled.

c) If you have any factory act case pending contact a labour law consultant or a advocate.

3) Regarding the old consultant:-

a) Record any conversation where he threats you.

b) Lodge a FIR under Indian Penal Code , Extortion(Sec 383), Conspiracy(120B)

c) Lodge a case for deficiency of service in Consumer Court.

Visit the website below for all matter

From India, Kolkata
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