Dear friends, I need your considered views on the following.
A company in Delhi which is private imited company has less than 10 employees at present as under:
Directors(owners) 2
Managerial staff 2
Support staff 2
Driver 1
Total 7
Then there are temporary interms and free lancers who work as and when required. It has in the past more than 10 employees at one point of time.
The company has issued appointment letters to the managerial staff which does not specify anything about leave entitlement.The company has no formal system of maintaining any record for staff leave and holidays,payment of minimum wages to staff and time of payment of wages/salary and overtime rates as the management feels that being a small company it is not obliged to follow any labour laws.But it is booking all the payments in its books of account and claiming income tax deduction.
My queries are:
1. Whether the above company is covered under Delhi Shops and Establishment Act, As far as I know that the Delhi Shops and Establishment Act applies to all establishments irrespective of no of employees working therein.
2.Whether the above company is covered under PF,ESI, Payment of minimum wages act etc.
3. What is the remedy with theemployees to compel the company to follow the basic labour laws. Can they write to Labour inspector.
Please revert with case laws if available.
Thanks
Prakash
From India , Delhi
A company in Delhi which is private imited company has less than 10 employees at present as under:
Directors(owners) 2
Managerial staff 2
Support staff 2
Driver 1
Total 7
Then there are temporary interms and free lancers who work as and when required. It has in the past more than 10 employees at one point of time.
The company has issued appointment letters to the managerial staff which does not specify anything about leave entitlement.The company has no formal system of maintaining any record for staff leave and holidays,payment of minimum wages to staff and time of payment of wages/salary and overtime rates as the management feels that being a small company it is not obliged to follow any labour laws.But it is booking all the payments in its books of account and claiming income tax deduction.
My queries are:
1. Whether the above company is covered under Delhi Shops and Establishment Act, As far as I know that the Delhi Shops and Establishment Act applies to all establishments irrespective of no of employees working therein.
2.Whether the above company is covered under PF,ESI, Payment of minimum wages act etc.
3. What is the remedy with theemployees to compel the company to follow the basic labour laws. Can they write to Labour inspector.
Please revert with case laws if available.
Thanks
Prakash
From India , Delhi
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