Received Notice From Labour Inspector for New Company with 4 employees - CiteHR
Umakanthan53
Labour Law & Hr Consultant
TAMASB
Head Hr
Vivek19
It Business

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Hello,
I started a webdesign company 9 months before and 4 employees are working. 45 days ago a Labour inspector and a person seems to be assistant visited the premise and asked for forms and compliance.I responded that it was a new firm and I request for forms so that i can submit it.He said form is not available in his office or online and i have to get from some xerox shop. I asked is there any charges to fulfill this forms but they didn't respond and his assistant insists that i will come to know when I visited their office.He received a signature from me & my employees for his visit and asked me to visit him in office. In fact he filled the complaints after getting signature from us. I consulted my friend who runs a similar establishment and he suggests I dont need to respond as I am under 5 employees category and they will ask for money if i visit them.
Now after 45 days after inspection I received a notice saying that I didn't produce the registers P,Q,R,S,T.My name board is in full english and Inspector register not maintained.
And I have to pay fine or If this notice doesn't receive any response in 7 days, that he may initiate court proceedings.
I am happy to comply with any law, so please guide me how to respond to this situation. Also considering the fact that it's a new business and employees under 5 do I have any exemption ?

All employees are recruited and receiving salary for past 5 months only.
Dear Vivek,
In general, the commencement of the application of any labor law to the persons hired is concurrent with the dates of their employment in the establishment unless anything specifically provided for otherwise. As far as I know, the very application of the State Shops and Establishments Act is not conditioned by the no of employees hired. Even if there is a single employee, the Act would apply and the employer is expected to maintain the prescribed registers and notices pertaining to employment.
When the Inspector pointed out the defects he noticed during the course of his inspection itself, don't you think that he was acting under some statutory authority and your immediate compliance thereof your statutory responsibility? In this context, the suggestion of your friend seems to be an illegal advice. Instead you ought to have consulted some other employer who is law-abiding or visited the office of the inspector for further guidance.
Now, it would be better to pay the compounding fee imposed while complying with the maintenance of the documents mentioned.

Yes I felt responsibility to comply at first but what made me suspicious is when I asked whether I need to submit forms only or Is there any government fees associated, their reply is come to office let's talk there. They could have told the facts. Is this the way of approach of a government official ? They made me hesistant because of their non-transparent approach.
Also I consulted with law abiding other employers who said they need to bribe them to make them compliance, which confirms their intention.
And also for your information they listed all complaints after getting the signatures.

FORM - P

REGISTER OF ADVANCES PAID, DEDUCTIONS FOR DAMAGES OR LOSSES AND FINES
(See Sub Rule (4) of Rule II of Tamil Nadu Shopes and Establishment Rules, 1948)

Name and Address of the Establishment :
Month Year

Sl.No. Name Father's Name EC No Designation Deduction for Damages / Losses Fines Signature / Thumb Impression of the person employed Remarks
Amount Paid No.of instalments to be recovered Date on which recovery completed Damages Lose Caused Date of Show Cause Notice Total Amount of deductions imposed No.of instalments to be recovered Date on which deduction completed Act or Omission Date of Show Cause Notice Amount of fine imposed Date on which fine recovery completed
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