Facing Bribery Demands for Labour Certificate Amendment: How Can We Resolve This?

Dear Friends,

I am Jeevarathnam. I joined a small software organization in March 2009 as an Admin Manager. Upon my arrival, I reviewed all the certificates and noticed that the Shops and Establishment Certificate needed to be amended due to the increase in our employee strength. Previously, the administration did not maintain any records in accordance with the rules.

Upon identifying the discrepancy, I met with the Senior Labour Inspector to discuss the necessary amendment. Following the inspection, I provided all the required documents as per his request. However, he is now requesting a substantial bribe, which our director refuses to pay. Despite acknowledging all the reports and accepting the original registration certificate along with FORM A for the amendment, the inspector is withholding the certificate and insisting that our director collect it from his office, a visit our director is unwilling to make.

I possess the acknowledgment of FORM A and a copy of the paid fees challan. Can anyone suggest how we can obtain the certificate, or if there will be any potential issues in the future without the original registration certificate? Additionally, I have a copy of the certificate as well.

Please advise.

Thanks in advance.

Cheerz,
Jeeva

Hi Jeeva,

Please don't pay a bribe. Unless we stop giving bribes, this system won't change. Kindly inform his higher authority if applicable because when we faced a similar situation, we informed his higher authority or filed a complaint with the anti-corruption department. See how things work out soon once that officer is aware of the complaint.

Dear Jeeva,

In our opinion, send the reminder by registered post or by hand with a copy circulated to all his seniors. If even then he does not pay attention to your request, then meet the senior officer personally.

Regards,
R.N.Khola
(Labour Law & Legal Consultants)
09810405361

Hi Jeeva,

It's not a problem with you. If you submit the papers in time with appropriate documents, then it's a problem with the labor department. So no need to worry. Anyway, keep in touch with them and send the letter for reminding the RC with acknowledgment of receipt.

Regards,
Saravanan

Dear Jeeva,

Please contact the Ministry of Labour to resolve this issue.

Regards,
Kalpesh Patel
Labour Consultant
09377591001

Here are a few things to keep in mind before taking any action:

1. Check your records, returns relating to labor; all are ok.
2. Check all compensation and benefits for the labor and staff. Are these as per Law?

If everything is ok and as per Law, and you feel you can justify that you are going correct for everything (as per paper), then there is no need to worry about this, and you can follow Mr. N.K. Khola's reply. Otherwise, you should follow Mr. Kumaracme's advice.

Today's market practice is different from the book. Situation/environmental analysis is always needed before taking any action.

Anurag
Manager-HR & Admin

Dear Jeeva,

Please send a letter under RPAD to him and copy it to his superior, referring to his date of inspection. Kindly mention the records he had inspected. In case of any non-compliance, please state a date by which you would comply.

End the letter with the original certificate that he had taken with him and request to send the same back. Every fortnight, send a reminder, and things should work out.

P. Hari :)

Dear Jeeva,

You might have submitted the registration form and amendment in duplicate, and you must have one office copy of that. There is no need to panic for anything; just keep the office copy with you bearing the inward number with the date from the labor office. Put your remarks that the amendment is under process. I believe you met the Labor officer of your circle. He has to mark "objection" if any on your application for non-issuance of the new registration. If the Labor commissioner asked for any compliance in this regard, you should produce the office copy and state the reason for the pendency.

The rest will work in your favor. Keep on trying; this will certainly help you.

Regards,
Digvijay Sarin

Dear Jeeva, I can understand it's a very frustrating situation; however, look at it as a learning experience. Check your facts. Are you talking about the contract labor registration certificate with the labor department or the shop and establishment license from the municipal body? Form A comes in the amendment of Shops and Establishment License. If you are not working in a factory, then the labor officer's role doesn't come into the picture. Please check all relevant details and only then react. Also, keep regular contact with the GLO until you are sure. My personal advice regarding bribing only happens when your records are not straight. Furthermore, maintain cordial relations with the GLO and explain the company policy to him. If he is a good guy, he will agree to it, but for that, you will have to build a good rapport with him (Show your genuineness). Also, take your director into confidence so that he will be there to support you when needed.

Dear Jeeva,

As per my understanding, the Labour Inspector has accepted and acknowledged all the reports, and he has also accepted the original registration certificate along with FORM A for amendment, right? Now, you need to send polite reminders by registered post. In the end, he will find it difficult to ask for any amount.

Regards,
Anand
9224408539

Jeeva,

It's not a new thing, which you are supposed to do the same. It's a general practice. Maybe this time someone will not accept the bribe, but they will harass you in the future by another activity. This time, maybe you will win the race, but for the future, this could be problematic for either you or your employer. Writing to seniors or any person in any department may not make any sense because you know the whole society (government officials). Unless you have any connection in the government department, you can't get work done. The best option is to hand over the case to ACD; this will send a message everywhere. Every HR/P&A manager is facing such problems, but no one is taking steps against anyone because everyone knows that they will harass you in some other way.

Regards,
Arun

Dear Mr. Jeeva,

As your profile mentions that you are in Bangalore, please let me know which part of B'luru you are located in.

Don't panic.... you can try out the suggestions mentioned by our colleagues.

Dear Jeeva,

Bribery is the tonic for all government officials. So, if possible, resolve the issue by negotiation. Otherwise, be informed that there are no staff (permanent/casual/temporary, etc.) who are drawing salaries/wages without being on the payroll. If everyone is enrolled, you can proceed; things can be managed later if any disputes arise in the future.

Also, please be reminded that the penalty would be very nominal. Ensure that the company is paying minimum wages to employees and that all are enrolled in the payroll register.

Contact the local LEO, and if they do not address your concerns, go directly to the Commissioner.

Regards,

Ajay Shukla

Consultant, Labour Law

Kanpur

09839066035

As per the Factory Act, if you apply for any license and you don't receive any communication from the government department within three months, then you are deemed to have obtained the license. Please remind them, and if they don't reply within one month, send another reminder and wait patiently.

No worries.

Regards,
Amit

Hey friend, the simplest one yar.

Most of such ethical issues nowadays are dealt with in the most prompt way by THE MEDIA.

Go for a sting operation of that official - seriously, as someone said, he'll touch your feet. Ask a reporter to pretend as someone from your company or your director, even who came to collect the letter.

DO NOT BRIBE in any condition; we must now realize it and change something which has become a national character.

Please

Hi Sumana,

Yes, I am from Bangalore itself. I am located near Hebbal, and the office is in HRBR Layout. Our organization is related to software, and I hope it won't fall under the Factories Act. We are under the Shops and Establishments Act itself. As per Mr. Ajay's words, we are paying more than the minimum wages act itself. The least salary for an office boy is 7000/-, others are getting handy pay.

However, there are two problems:
1) Actually, we were registered to a maximum of 19 strength, but we crossed that limit in October 2008. Earlier, the admin didn't approach the labor department. I joined in March 2009, and in the same week, I approached, but he gave acknowledgment only one month back.
2) We didn't even file the annual returns for last year. Now, he didn't even accept and returned it. Moreover, our director is ready to pay any amount of penalty but not ready to pay even a single penny of a bribe.

Let me wait for some time and take appropriate action on the same.

Thanks for your valuable suggestions.

The Registration Certificate under the Contract Labour Regulation and Abolition Act has to be amended or renewed on a yearly basis. This process involves updating the list of new contractors, deleting contractors who have left, and changing any pertinent information or data in the Registration Certificate as and when substantial changes occur. Some states still carry out this process manually, while in the case of the Central Government, it is done online digitally.

Thank you.