Which State's Rules Apply When Employees Are Recruited in One State and Posted in Another?

Respected Seniors,

I have a query. If an employee is recruited in one state and then posted in another state, which state's rules will be applicable to them? For example, if certain rules apply in the recruited state but not in the posted state, will the employee still be governed by the rules of the recruited state?

Please advise urgently.

Thanks in anticipation.

Regards,
Rakseh Yadav
rockey_5120@yahoo.co.in

Dear Sirs,

Actually, our company's head office is in Chennai, and we are posted at the Manesar Plant. The issue we are facing is that our staff's salary and all records are processed and maintained in Chennai, while the workers' records and salaries are managed here in Manesar, Haryana.

There are two key matters to address: Labour Welfare Fund (LWF) and Professional Tax (PT). Both LWF and PT are applicable in Tamil Nadu. However, LWF is applicable in Haryana, while PT is not.

We are currently deducting LWF for the workers here, and since PT is not applicable in Haryana, there are no issues with the workers' data. However, considering that staff salaries are processed in Chennai, they are deducting our professional tax. If the rule states that the regulations apply to employees based on their posting location, which in this case is Haryana, then we may not fall under the PT criteria. Additionally, the authorities in Haryana have instructed us to remit LWF for all staff and workers here.

Now, please advise on the following:
1. Are staff members subject to PT applicability?
2. Should we remit LWF for staff members here in Haryana as well?

Please provide your feedback.

Regards,

Rakesh Yadav

Dear Rakesh,

If you are recruiting employees in another state, then in that case, the labor laws of that state where they are to be employed will be applicable. This is similar to campus placement. However, please note that if any contractor/agent employs five or more persons in a state other than the one where they are to be employed, then The Inter-State Migrant Workmen (R E&C S) Act, 1979 will be applicable.

Regarding the deposit of the labor welfare fund contribution, it is hereby stated that the Labor Department, Haryana's guidelines appear to be correct concerning the deposit of this contribution with the Welfare Commissioner, Haryana for the employees employed at your Manesar Plant.

With Regards,
R.N.Khola

Clarification on Displacement Allowance for Inter-State Migrant Laborers

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Regards,
Sripath