Navigating HR Challenges: Payroll, Workforce Expansion, and Reporting Concerns in Manufacturing

Dear sir, I am working in the manufacturing industry, which started in 1991. My confusion is as follows:

1. There are 200 employees working, but only 95 are on the payroll for whom they are paying PF & ESI. Is this correct?
2. The factory has permission for 95 employees, but they want to increase the workforce in May 2011. Is it possible under the Factories Act? Please suggest.
3. Appointment letters have not been issued to employees yet. Can we start issuing appointment letters as per the law?
4. I hold an MSW qualification, but I report to a department head with lower qualifications who was handling HR activities before my joining. I am feeling disappointed about this. Please provide suggestions.

Thanks & Regards,
Renuka Udaykumar
Bangalore

Dear Renuka,

1. Are 200 employees working, while the rest are on contract or any third-party payroll?

2. There are slabs to consider when applying for the renewal of a license. If you wish to increase your employee count, you can submit a treasury receipt to the factory office based on the applicable slab.

3. I have an LLB and an MBA in HR, but I don't believe that qualifications matter much in comparison to experience. My seniors are just graduates, but their experience makes them experts in the field of Industrial Relations. I have learned a lot from them, which is why I was selected for the HR Executive position with just 1.6 years of experience.

Thank you.