Navigating Labor Compliance: Are These Record-Keeping Practices Necessary for Small Software Companies?

Dear Friends,

I am Jeevarathnam, working for a small software company with a staff of 28. Yesterday, a labor inspector visited and requested some records.

They are:

1) Attendance in the prescribed format (Muster Roll) where employees have to physically sign every day. Is this applicable to software companies, and do all companies follow the same practice?

2) In the payslip, we do not show the DA (Dearness Allowance) and he is insisting on it. However, I have not seen DA on payslips in any company. Is it necessary? He mentions that both the employer and employee should sign the payslips. Is this mandatory, and if so, do large companies also require signatures from employees? What about computer-generated payslips?

If DA is compulsory, what is the ratio of DA, and is it calculated on Basic or Gross salary?

3) He mentioned that appointment orders should be given in a preprinted format that is readily available.

4) Is it necessary to maintain gratuity records even if the company is only 2 years old?

5) He is requesting annual returns in the form of Form U. What is Form U, and what information needs to be included in it?

Thank you very much.

Jeevarathnam P

Dear [Recipient],

Whatever the inspector is asking is correct. He cannot ask for things in writing that are illegal, but the software company does not follow the laws of the land. They are required to comply with all laws as other establishments do.

The muster roll should be maintained as per the Karnataka Shops and Establishment Act. Pay slips should be signed by both the employer and the employee, and you should have proof of this. It is not necessary to show DA separately, but you can combine DA and basic and show them under basic.

Dear, you cannot make any record computerized, not even the salary register. If you want to computerize it, all formats must be approved by the labor commissioner, and you should obtain permission for the same.

Thank you.

J.S. Malik

Dear Jeevarathnam P,

The labor law enforcement agency, including the labor inspector, can ask you to produce the relevant records. According to your statement, he has only asked for the statutory relevant records under the State Shop Act, The Minimum Wages Act, 1948, & The Payment of Gratuity Act, 1972. Please go through these enactments and the respective State Rules; you will find all answers to your queries without fail.

Regards,

R.N. Khola

(Labor Law & Legal Consultants)
09810405361

Dear Jeevarathnam,

The Labor Inspector is within his purview. Please meet/contact me in Bangalore to resolve your concerns and ensure compliance in full.

Thanks,
Ram K Navaratna
HR Resonance
9448274030

Dear Mr. Malik,

I argued with the inspector regarding the fact that Basic & DA are being clubbed and shown as basic. However, he is not accepting this explanation. He is particularly adamant about them needing to be separated. What should I do about this? Do you have any idea about the minimum wages for Basic & DA in the IT industry for the years 2009 & 2010? I tried asking him about it, but he refuses to provide the information.

Thanks & regards,
Jeevarathnam P

A quick glance through the "List of scheduled employments minimum wages fixed" by KLJ Publications might help you.

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Please let me know if you need further assistance.

I am working in a public limited company. One day, a labor inspector visited our office and asked for all the registers, which we promptly produced. However, we were unable to provide Form-R, Form-P, and Form T as these are maintained manually and it is not feasible for us to do so. Could you please let me know if there is any software available that would allow us to upload our data?

Regards,
Venkat