Struggling with Statutory Compliance as a Fresher? Seeking Training in Bangalore for PF, Gratuity, and More

Hi! I am Shilpa, handling statutory compliance of my company. My problem is I am a fresher, just completed MBA (HR). I am facing loads of difficulty in handling stat. Comp. like PF, Gratuity, ESI, CLS, and others. Books are not so much helpful. Can anybody suggest if in Bangalore we have any certificate course or some training program in the same? This will give me an edge in my career as well as knowledge; otherwise, these acts are tough to understand. Thank you.
Shilpa

Hi Friends,

Please provide us with some insights as statutory compliance is also one of the primary functions of HR. Books are not very helpful in this regard. Kindly update us with basic and latest methods related to this.

Regards,
Prasad.

Hi,

I hope the attached file will serve the purpose.

Thanks,
N. N. Tiwari

If you guys are starters, you may also want to use the attachment provided here. You need to install it as a desktop program.

Regards,
Sanjay

Easy way to handle this:

a. Get in touch with some of the labor consultants.
b. Try to find out from your HR friends how they handle this.
c. Try to get in touch with some retired labor inspector - he will be of very good help to you.
d. Finally, if your company allows, outsource the activity to some consultant.

Trust the above will give you some idea.

Regards,
Dasa

Dear Shilpa,

You are right that the books are not sufficient. The key is to apply the principles taught in the books. It's time for you to put them into practice. We are all here to help, and please find the attachment regarding statutory compliance. Now, focus on applying the theoretical knowledge in practice.

Regards,
Dennis

Hi Shilpa!

Compliance with statutory provisions is an essential aspect and, to some extent, it is the same everywhere in India except for a few statutes that may be state-specific. Important compliances are as follows:

1. Factories Act: Registration, obtaining a license, and informing the office of the Joint Director, Industrial Safety & Health about the start of operations in the case of new factories. Thereafter, exhibiting extracts of the Act, submitting yearly returns. In case of any accident, sending information in prescribed forms as required by the nature of the accident.

2. Payment of Gratuity Act: Obtaining declarations of all the employees about nominations in the prescribed form. Also taking care of compulsory insurance for the payment of gratuity. Also to make payments of gratuities to eligible employees within a period of 1 month.

3. E.P.F. Act: To deposit EPF contributions by the 15th of every succeeding month and filing monthly return form 12 by the 25th. Also submission of forms 5 & 10 in cases of new employees and employees leaving the job.

4. E.S.I. Act: Submission of forms for new employees for his registration with ESIC. Also paying monthly contributions and submission of returns.

5. Abstracts of Acts to be exhibited: Payment of Gratuity Act, Minimum Wages Act, Payment of Wages Act, Workmen's Compensation Act, etc.

6. Contract Labour (R&A) Act: If employing more than 20, then to obtain registration from the office of the Labor Commissioner or any delegated authority. Also to display an abstract of the act.

7. Payment of Bonus Act: To maintain registers in forms A, B, and C.

8. Environmental Acts: To obtain consent from the State Pollution Control Board to establish and operate and also to display required information regarding operations and pollutants of the company on a prescribed size of the board for the general public to view.

Hope I have covered all important statutory compliances.

I.N. Jha

Dear All,

The best way to learn compliance is to work with a consultant part-time in the evening. Usually, the employees/inspectors working in PF/ESIS, etc., do private practice and have many clients. Instead of looking for some course, the best way is to work with such people in their offices in the evenings or on Saturdays hands-on. Within 6 months, not only will you become an expert, but you will also know how the various inspectorates think.

Thanks,
Praful

Dear Shilpa,

I read every post in the last three pages. Amazing knowledge sharing.

Regarding your question, you said that you're a fresher.

Shilpa, none of us were taught how to fill the ESI and PF challans after completing MBA or how to handle a labor law inspector when he surveys one of our branches and finds non-compliance. We all have learned this on the job. Books or another course won't help you.

One thing that can really help you is your labor law/legal advisor or your immediate boss and alas all of us here at citehr.

Regarding Industrial Relations, you should start working on a few of the important Acts which are:

1. Shops and Commercial Establishments Act / Indian Factories Act (as applicable in your case whether it's a manufacturing concern or an office)
2. Employee State Insurance Act
3. Employees' Provident Fund and Miscellaneous Provisions Act

These three are the main Acts, which every HR fraternity goes through almost daily. Thus, a thorough knowledge of these Acts will help you a lot.

Spend some time on these websites:

- www.epfindia.org
- www.esic.nic.in

Don't just visit these sites, search for every single word on these two websites that comes into your mind related to the mentioned laws.

Take some printouts of Forms, read the instructions carefully. Every form has brief information about it which can be even understood by any layman.

Alternatively, when you're free start making some notes on a particular Act. What will help you more are the definitions of the important terms, say the definition of employee, employer, wages, factory, establishment, etc. These are the main learnings.

Also, keep an eye on the updates or any notifications passed on a particular Act like the Minimum Wages Act, where a notification is released twice a year stating minimum wages for the next six months of the year.

To make you comfortable, we may say IR is not rocket science.

Warm regards,

Umesh Chaudhary (welcomeumesh@yahoo.com)

Hi Shilpa!

Mr. Umesh Chy has rendered practical advice that needs to be imbibed. On my part, I will add a few more Acts which are a must for the professionals of I.R. They are as follows:

1. The Industrial Standing Orders Act
2. The Industrial Disputes Act
3. The Payment of Gratuity Act
4. The Payment of Wages Act
5. The Minimum Wages Act
6. The Payment of Bonus Act
7. The Trade Unions Act
8. The M.R.T.U. & P.U.L.P. Act (For Maharashtra only)

There are many more useful Acts that find applications at one time or another, but the above Acts are almost needed to be referred to daily. Thanks to Mr. Chaudhary and all contributors.

I.N. JHA

Dear Hi,

Can anyone provide me with some information or a presentation based on Statutory Compliances?

I am mainly a Recruitment Manager but am looking for some sort of information based on FAQs of Statutory Compliances. What kind of questions may we have to face at an Interview Board for Statutory Knowledge (those who are at the beginner level) or similar positions?

Regards,

Anubrata
Assistant Manager - Recruitment

Dear Mr. Tiwari,

Can you please tell me if you have mentioned under the EPF Act Form 3A/Form 7 (PS) for the annual contribution card? Should it not be Form 3A/6A? I ask because I have received this information only from Cite HR (i.e., 3A and 6A are the returns to be submitted for the annual contribution card).

Other members, please correct me if I am wrong.

Thanks and regards,
Gururaj.

The minimum number of toilets required that comply with the Factory Act depends on the number of employees. For instance, it is 1 for every 25 employees, 2 for 50, and 3 for 100. Additionally, an extra toilet is needed for every 50 workers thereafter. Please note that this information is not authenticated, so verification is necessary.

You should study some books written by H.L. Kumar:

1. Labour Law - Everybody should know
2. Factory Act 1948
3. State Factory Rules (such as Punjab and Haryana factory rules) - Most states have their own rules on factories.

Sanjay,

Thanks a lot for the wonderful contribution. It is indeed a splendid resource and will provide excellent guidance on statutory compliance requirements.

Regards, Sharmistha.

Hi,

Books in MMS/MBA won't provide much input on your stat compliance. You will get a lot of help from the members who have attached literature on this topic. Refer to them.

When you handle it for the first time, you are actually cleaning up the mess that was made earlier. So now it's time to clean it up and rearrange it.

When a new joiner joins, prepare a separate joining kit. It should include all the necessary documents, including PF, ESIC, and opening a bank account (which are common). Once you start regulating it, everything else will fall into place.

Get the salary structures, understand them, and arrange their forms.

Regarding the older forms, prepare a status report and, as per the information provided by other site HR members, segregate them and execute them.

Once the salary report is prepared, prepare the challans at one go. Submit the challans (PF, ESIC, PT) on or before the 15th of each month, irrespective of different submission dates.

When an employee leaves, fill the requisite withdrawal form and process the 3A forms. Submit them. I guess the annual submission will not be vested in your hands.

A place for everything, everything in its place.

Regards

Dear Anupama,

Just log in to www.epfindia.com where you can find EPF forms and details, and visit www.esic.com for ESI.

For EPF, you need to calculate 12% of basic + DA. In some companies, they provide only basic, but it must be covered as per the minimum wages act of that state. The maximum limit is 6500/-. If you have employees whose basic + DA is more than 6500/, while calculating EPS, you have to limit it to 541/-, and the remaining employer contribution has to be remitted in the EPF fund. Form no. 2 needs to be sent for declaration, and before the 25th of the preceding month, you have to send the details in form no. 5.

For ESI, form no. 1 is a declaration in which you need to attach a postcard-size photo, which will initially be for 3 months. Along with that, you need to send the details in form 3 and clearly categorize male and female. After 3 months, you have to submit the details for the permanent insurance number. Every month before the 21st, you have to remit the employee and employer contributions to the consent bank. Simultaneously, the half-year returns with prescribed forms need to be submitted before April 12 and November 11, with a maximum amount of 10000/- per month.

Hope this information helps you. For more details, kindly email or call at [Login to view] or 9448317309.

Ramnath Bangalore

Dear Members,

These attachments are useful only when your case involves the appropriate Government, specifically the central Government. Please be careful when utilizing this information. If your unit or company is covered under State Rules, then review and adhere to those rules for compliance with different labor laws.

This is submitted with due respect to the members who have provided valuable and knowledgeable material.

Regards,
R.N. Khola
Sr. Associate
Skylark Associates, Gurgaon (Haryana)

Hi Shilpa,

I believe you received valuable information from our team. Could you please let me know which act under your company has been registered? The reason I'm asking is that Statutory Compliance varies from one act to another. For example, under the Factories Act, Companies Act, and Shops & Establishment Act...

If you could confirm the exact act, we can provide you with clarity on the statutory compliance requirements that need to be maintained under that specific act.

Regards,
Ranganath

Hi viewers,

I have attached an article relevant to QC. Please go through it and send your comments.

Thanks and regards,
Jena

Hi viewers,

Please review the personnel management concepts and share your comments on this.

With regards,
Jenadeep

Hi Sir,

I am Suresh. I am presently working in a granite firm. I am looking for an institution that provides a Diploma in IRPM. Please suggest a reputable institution.

With regards,
Suresh P.

Hi Shilpa,

Please find the attachment.

Regards,
R. Raja

Hi,

I need all of your help because I want to change my company. Right now, I am not getting any opportunities for this. Can you help me with 2 years of experience in HR field including ESI, PF, Statutory Register, and Compliance Knowledge?

Ok! BYE

Shilpa in Bangalore, some certificate courses are available like "HR House" and "Schindler Incorporate". You can contact these institutions. Hope that you got the idea.

Mahesh

Dear Mr. Peer Mohamed,

I am in the lookout for a presentation on statutory compliance (PF, ESI, PT, LWF & shops & Est.). Could you please forward one? Email id: hari021157@yahoo.co.in.

Thanks and regards,

Hariharan N

Hi Shilpa,

As you are new to this field, don't worry about statutory. Keep on attending statutory audits by clients or other professionals. You will learn more instead of studying somewhere, and I'm sure it could help you gain perfect statutory knowledge.

Regards,
Ranganath

Hi Shilpa/Prasad,

My kind advice is not to join any institute. I know of some institutes that teach Core HR and Statutory as part of the program. I, too, received training from HR House. However, they do not provide clear training. They tend to skim through the content without delving deep into it.

The best approach would be to get training from a labor or ESI and PF consultant. Alternatively, you can practice on your own by observing and asking questions in this forum. For further details, you can call and receive some important tips from senior individuals.

If there are senior personnel in your office, seek clarification from them as well. They may also provide guidance. If you require more information, feel free to call me.

Jeeva

Hi Shilpa/Prasad,

My kind advice is not to join any institute. I know some of the institutes that teach Core HR and Statutory are part of the program. Even I got trained from HR House. They do not provide clear training. They just skim through the material and move on.

The best thing is to get trained by a labor or ESI and PF consultant. Otherwise, you can practice by yourself by observing and asking questions in this forum. For more details, you can call and get some important tips from senior individuals.

If there are any senior persons in your office, clarify with them as well; they might offer guidance.

If you need more details, feel free to call me.

Jeeva
9343753361

Dear Shilpa,

Greetings for the day!

As you mentioned that you have completed your MBA in HR, then why do you want to pursue a course related to Compliance? If I am not mistaken, HR itself includes Compliance. Books are there to assist you for referrals, and you have to gain knowledge over time by facing different issues and providing better solutions through your innovative ideas and experience.

It's all about gaining experience, not about repeating courses. If you encounter problems, just review the related act carefully, and you will find the provisions related to every issue. However, handling that issue always depends on your awareness and smartness.

Shilpa,

Just check out www.hrhouse.com, which provides training for HR candidates based in Bangalore. The duration of the course is one month. The topics you mentioned are included in their course list. Maybe this will help.

Dear All,

Warm greetings.

Of course, statutory compliance is an important area of HR work, and I have been working on statutory compliance for the past year. I still have a lot to learn. I recently received a file related to this in CitiHR, and I am sharing it again. I hope it will be helpful to you.

If you need any clarification, feel free to give me a call.

Thank you.

Dear Team,

As per our policy, if an employee is absent from work continuously for 5 days, we issue a warning letter. If the employee continues to be absent for 8 days, we proceed with termination.

On a daily basis, we send around 20 warning letters through courier, and typically only 2 or 3 employees return to work after receiving the warning.

As part of our cost-cutting program, we are considering sending the termination letter directly on the 8th day to save money. Could you please advise on the potential legal implications of this approach? Should we still issue a warning letter before terminating an employee?

V. Saravanan 9840773479

Dear Ms. Shilpa,

I think you are satisfied with all the queries and postings, and now you can do it on your own. Please don't go for any practical class because they will charge you more than 10,000/-. So, my advice is to try it yourself or email me, and I will help you with the basics so that you can confidently handle it.

Regards,
Ramnath G Naik
[Login to view]
9448317309

Dear Team,

As per our policy, if an employee does not come to work for continuous 5 days, we used to issue a warning letter. If the employee still does not come for continuous 8 days, we used to terminate him.

Every day we send around 20 warning letters through courier, and only 2 or 3 employees will return to work. Now, as part of our cost-cutting program, can we directly send the termination letter on the 8th day, which will save some money?

I would like to know what the legal implications are if we proceed with this action. Should I issue a warning letter before terminating an employee?

V. Saravanan
9840773479

Mr. Saravanan,

Never make such a mistake as it will create a lot of problems. You have to follow the principles of natural justice as per the Industrial Disputes Act. Conduct a domestic enquiry and then make a decision based on the enquiry report. If you are based in Bangalore, I can assist you.

Regards,
Ramnath
9448317309