Establishing HR Department in Manufacturing Industry - Addressing Labor Law Compliance and Minimum W

Dear Seniors,

I am in the manufacturing industry, specifically in the Bakery and Patisserie sector, with over 150 employees. Currently, there is no HR department established, and I have been tasked with initiating one.

Initially, I have been engaging with each employee to create job descriptions. I am currently analyzing each department to identify existing issues and discussing them with the top management.

In this organization, employees work all 365 days of the year without any holidays. However, I have successfully persuaded the management to provide at least 2 holidays per month. The current wage system pays workers 3200/- per month, contingent on working over 12 hours until the demand is met, with no holidays. I believe this setup may not be sustainable in the long run.

I am seeking your advice and guidance on how to address these challenges effectively. Any insights you can provide would be greatly appreciated.

Thank you in advance.

Regards,
Nidhi

Hi Nidhi,

Greetings!

Please find the attached document herewith for your reference.

Thanks & Regards,

S. Narendra Nath

Dear Nidhi,

What is your background? Are you setting up the HR Dept at the bakery? Where is the bakery situated? The minimum pay could vary from state to state, as per the Minimum Wages Act in force. Are you aware of the Act? If you do not succeed in finding it after searching the web using Google, I will give you the reference. There is more joy in finding it for yourself.

Have a nice day.

Simhan

Dear Simhan,

I come from a management background. Yes, I am setting up the HR department. The bakery is situated in Gujarat.

I am aware of the relevant act, but I would like to know the minimum wages that need to be paid to workers here. I will try to find this information.

However, in case the company does not adhere to the minimum wage requirements, will it pose a significant problem?

Please reply to me.

Nidhi

I am not an HR expert, and I am based in the UK. However, I believe the company could be taken to court to ensure compliance with the Minimum Wages Act. If you contact Mr. Madhu.T.K, the Board Moderator at CiteHr, he will be able to guide you better.

Have a nice day.

Simhan

Dear Nidhishah,

You may set up the HR department in your company, but what is the use of an HR department that couldn't save the workers from exploitation by the capitalists? You said you know the labor law, then where have you read about 12+ hour working?? I think the wages are also lower than the minimum wages act?? The HR department is not only a colorful poster at the workplace but to make the workplace colorful.

I hope I have not hurt your sentiments.

Dear Prashant,

You are absolutely right. I agree with it. I have just joined this organization, and there are many problems. So, I have to fight with the management for the employees' rights. Thank you for your suggestions.

Nidhi

Dear Nidhi Shah,

As you have newly joined, I request and suggest you to not raise your voice against the management but to observe things for around one year. I am sure you will come up with the desired solutions. First, save your job, then only can you save the jobs of others.

"Sar Salamat to Pagadi Hajar"

Hope you can understand...

Dear Prashant,

Yes, definitely I will do it that way, and as time passes, I will gently convince management. I joined one month ago, so now I am somewhat clear about the system here. Thank you for your valuable guidance.

Nidhi

I presume that your factory is not a new one. As such, the factory has been violating the Factories Act and labor laws applicable to your establishment since its formation. Since it is your responsibility to bring the entire system into a process, you have to start from lesson one. Certainly, it is good for you. You may start with legal compliances, i.e., filing of returns required under the Factories Act, Industrial Establishments (National and Festival Holidays) Act (which is a state Act), and so on.

If the situation is like this, I also presume that your establishment is not covered by EPF and ESI. The matter of payment of minimum rates of wages is a serious issue. Though the Minimum Wages Act is a central Act, the minimum wages in respect of your industry in your state are fixed by your state government. You can get a copy of the latest minimum wages to be given to various categories of employees in your industry from the Labor Department.

Being an employee who has substantial control over the establishment, you should not go parallel and get it done through the intervention of enforcing authorities but convince the management and then get your establishment covered by various Acts. You can advise your management about the consequences of non-payment of minimum wages, non-implementation of social security schemes like EPF and ESI, and non-adherence to the hours of work provided in the Factories Act. You may even warn them that non-compliance of many laws is a cognizable offense for which the employer can be prosecuted. But I know many know this but seldom care either due to their relation with the law enforcing authorities or due to their power of money.

It may not happen all of a sudden, but it may take time; still, you can do a lot, and that would be beneficial to the workers. By doing so, the workers will start feeling the presence of HR in their establishment. That is the real HR.

Therefore, trace the Factory license, returns filed during the last years/half-years. Collect information about minimum wages applicable to bakery workers in your area. If not covered by EPF and ESI (if situated in an implemented area), initiate coverage. Fix holidays and off days and ensure that no employee works for more than six days without any off day.

Regards,

Madhu.T.K

Dear Madhu,

Thank you so much for a detailed answer. You have given sound advice. You are an asset to CiteHR on legal issues.

Have a lovely day.

Simhan