Do We Need to Register with Tamil Nadu Labour Dept for Our Chennai Office?

Dear Seniors,

Our company operates in the field of Engineering Design with the Head Office located in Pune. Approximately six months ago, an office was established in Chennai solely for technical support, currently employing seventy-four individuals. Matters such as salary, PF, ESI, and electronic attendance are managed from our Pune office.

We seek clarification on whether it is necessary to register our company with the Tamil Nadu Labour Department. Please note that all labor-related documentation is overseen by the Head Office. Given our registration with the Maharashtra Labour Department, we question the need for additional registration in Chennai and the maintenance of records.

Your prompt response to this matter is greatly appreciated.

Thank you.

Since there is no regulation about the registration (as in other states such as Kerala, AP, Karnataka, etc.), please contact the LABOUR inspector of your area. You can inquire at nearby large shops or offices. Provide the LABOUR inspector with FORM V (under the National and Festival Holidays Act) applicable to your office for the year 2009. You may refer to the Form V from your Pune Office. The inspector will assist you in maintaining registers and records under various acts within his jurisdiction. He will also assign a number in the Form V, such as R.DIS.NO, which should be included in all your communications with the Labour Inspectorate and on all future Form V submissions.

Alternatively, if you require a service provider for this matter (either for a one-time assignment or regular assignments, where they handle all formalities and update registers and records monthly on your behalf), please contact Mr. C.P. Kannan at 9840022709.

Thank you for your immediate reply. When I approach the Labour Inspector, he will definitely ask me to register. My question is, is it mandatory or not? If it is not, why do I have to register? Our Head Office is advising us not to do it as our company is similar to a software company, and the Chennai office is only providing support to the Head Office. Can you clarify if software companies and BPOs (with Head Offices in different locations) are registering here or not? Please assist me in resolving this issue.

Thank you,
erap

Hi,

If your branch office is opened in your city where HO is situated other than the same premises (in this case, consider you have opened one more office two buildings away from your HO), the registration is required, and it is compulsory. As I understand, the registration is not mandatory under shops & establishment regulations; however, you need to consider it as a branch office, and you need to submit the annual returns. Approval of the holiday list from the Labour Inspector is mandatory.

Regards,

Hi,

I think the registration is not required as per TN S&E Act, but you have to maintain the records such as Form P, Q, R, S, T for the Labour Dept.

Requesting all to reply if I am wrong.

Warm Regards,
Balasubramanian

Dear,

Yes, you have to take a license from the authority under the Tamil Nadu Shops and Establishments Act. So, you have to register under the said act. You have to maintain the attendance register there. Only ESI, PF, and other records can be maintained in Pune; however, they can ask for some records during inspection. If you maintain them in Pune, there should be no legal hitch.

Thanks,
J.S. Malik

Thank you for your immediate reply. I discussed with the Head Office (HO), and they are advising against pursuing this as our company primarily focuses on software services, with the Chennai office providing support to the HO.

In this context, I have the following queries:
1. Why do we need to obtain the license? What are the consequences if we do not proceed with it?
2. Can you clarify whether other software (SW) and Business Process Outsourcing (BPO) companies with HOs in different locations are acquiring licenses here?

Please assist me in resolving this matter.

Best regards,
erap