Guide me on every thing about statutory compliance requirements.
From India, Hyderabad
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2From India, Hyderabad
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Dear Dee,
Understanding statutory compliance, though often neglected, is important to know because non-compliance can lead to penal action.
The first step is to determine whether the organization falls under the purview of the Factories Act (mostly applicable to manufacturing companies) or the Shop and Establishment Act (commonly relevant to ITES companies).
Once this is established, familiarize yourself with major acts such as PF, Gratuity, Bonus, ESI, and Contract Labour (which are typically sufficient).
- PF: Employers are required to deposit PF monthly and submit returns like Form 5 and 10 related to member joining or leaving, along with an annual return.
- Gratuity: The act mandates payment of gratuity to employees completing 5 years, and it is crucial for employees to fill out a gratuity nomination form upon joining to simplify matters in case of their demise.
- Bonus: With the limit now raised to Rs. 10,000, more employees qualify for bonus coverage. If paying bonuses, maintain a bonus register.
- ESI: Employees earning less than Rs. 10,001 fall under the ESI Act and must be insured accordingly. Monthly contributions (1.75% by employees and 4.75% by employers) need to be deposited, along with biannual and monthly returns (Form 3 and 1 for nomination and declaration) to the ESI department.
- Contract Act: If utilizing contract labor (e.g., security, cafeteria, housekeeping), register the organization under the act and adhere to its provisions.
Consider outsourcing these tasks to a consultant, ensuring timely compliance to avoid penal repercussions for the occupier or establishment manager, as the consultant is not liable for non-compliance.
I hope this information is helpful.
Best wishes,
Sunil Joshi
PGCHRM - XLRI
From United States, Bedford
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Understanding statutory compliance, though often neglected, is important to know because non-compliance can lead to penal action.
The first step is to determine whether the organization falls under the purview of the Factories Act (mostly applicable to manufacturing companies) or the Shop and Establishment Act (commonly relevant to ITES companies).
Once this is established, familiarize yourself with major acts such as PF, Gratuity, Bonus, ESI, and Contract Labour (which are typically sufficient).
- PF: Employers are required to deposit PF monthly and submit returns like Form 5 and 10 related to member joining or leaving, along with an annual return.
- Gratuity: The act mandates payment of gratuity to employees completing 5 years, and it is crucial for employees to fill out a gratuity nomination form upon joining to simplify matters in case of their demise.
- Bonus: With the limit now raised to Rs. 10,000, more employees qualify for bonus coverage. If paying bonuses, maintain a bonus register.
- ESI: Employees earning less than Rs. 10,001 fall under the ESI Act and must be insured accordingly. Monthly contributions (1.75% by employees and 4.75% by employers) need to be deposited, along with biannual and monthly returns (Form 3 and 1 for nomination and declaration) to the ESI department.
- Contract Act: If utilizing contract labor (e.g., security, cafeteria, housekeeping), register the organization under the act and adhere to its provisions.
Consider outsourcing these tasks to a consultant, ensuring timely compliance to avoid penal repercussions for the occupier or establishment manager, as the consultant is not liable for non-compliance.
I hope this information is helpful.
Best wishes,
Sunil Joshi
PGCHRM - XLRI
From United States, Bedford
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Hi Mr.Sunil josi My name is kiran iam working as HRD-Executive,can u pls send me some suggestions for making Factories License forms and covering letter. Thanking you Kiran
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Dear,
Legal compliance is important as it directly attracts legal action against Company Owner, Director, or Occupier. Hence, it becomes necessary to comply with the provisions of applicable acts in stipulated time.
Here is an xls file which consists of the nature of compliance that is to be done under various acts. The information also covers the date/period of compliance. Hope it will be helpful to you.
Thanking you,
Sudhakar Bhadane
Sr. Executive - HR
Nashik - 9850339911
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Legal compliance is important as it directly attracts legal action against Company Owner, Director, or Occupier. Hence, it becomes necessary to comply with the provisions of applicable acts in stipulated time.
Here is an xls file which consists of the nature of compliance that is to be done under various acts. The information also covers the date/period of compliance. Hope it will be helpful to you.
Thanking you,
Sudhakar Bhadane
Sr. Executive - HR
Nashik - 9850339911
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Pl find attached Xls., which contains IF details of maintaining records, registers and returns in TN
From India, Madras
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From India, Madras
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Hi Deeshe You can download all statutory complaince from citehr itself. Type the same in download search. Feel free in case any difficulty Chetan
From India, Mumbai
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From India, Mumbai
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Thank you for the information, Sir. It was greatly helpful. It would be appreciated if you could provide me with some information regarding the scenario where a company declares itself as a loss-making entity and fails to file a return for a bonus. What kind of documents are required in this situation from a compliance perspective?
Regards,
LC
From India, Delhi
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Regards,
LC
From India, Delhi
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Dear Legal Compliance, even Loss making Units are liable to pay Minimum Bonus @8.33%. Payment of Minimum Bonus before due date & Filing of Corresponding Return will amount to "Compliance"
From India, New Delhi
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From India, New Delhi
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Bonus - Now that the limit has been raised to 10000/-, sir please share the memo copy of this.
ESI - All employees drawing less than 10001 are covered under the ESI Act - is it 10000 or 21000.
A semi-annual return is to be compiled, and also a monthly return with Form 3 and 1 (nomination and declaration) is to be submitted to the ESI department every month - there is no memo for this.
From India, Bharatpur
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ESI - All employees drawing less than 10001 are covered under the ESI Act - is it 10000 or 21000.
A semi-annual return is to be compiled, and also a monthly return with Form 3 and 1 (nomination and declaration) is to be submitted to the ESI department every month - there is no memo for this.
From India, Bharatpur
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Labr laws for Vendor compliance Management.pdf
Statutory Compliance of a Industrial or Commercial Unit.xls