Concerned About Low Employee Attendance Before Manufacturing Begins – Is This Normal?

My name is Lovely, and I am a Senior HR Executive in the Measuring Tape Manufacturing industry. This is a new industry that is currently installing machines. We have 22 employees in our company, consisting of 3 staff and 19 workers. However, I have noticed that only 9 employees are showing up in our attendance register. I have discussed this issue with our employer, but he said that since the manufacturing process has not yet started, we can manage with the current number of employees.

Seeking Advice on Employee Attendance Management

Please advise me if this approach is correct. I am concerned that this situation may lead to significant problems for me.

Thank you.

Sub-Manufacturing Process

This reply is only to enlighten you about the definition of a factory but has nothing to do with the validity of your action in showing nine employees instead of 22 employees, as there are other labor enactments governing various labor issues.

In terms of Sec. 2(m) of the Factories Act, a premises becomes a factory only when the manufacturing process is carried out on such premises with the help of power by ten or more workers, or when the manufacturing process is carried out without the help of power by 20 or more workers. Thus, the manufacturing process should be in progress to classify the premises as a factory. In your case, no manufacturing process is being carried out, only machines are being installed. Therefore, in my opinion, the premises cannot be called a factory.

In Seelan Raj v. Presiding Officer Add. Lab. Court, Chennai, 2001 II LLJ 1335, the Apex court held that mere installation of a data processing unit would not convert it into a factory.

Regards,
B. Saikumar

HR & Labor Law Consultant
Chipinbiz Consultancy Pvt. Ltd.
Mumbai

Dear Gandhi & Sai Kumar,

It is correct that since the manufacturing process has not yet started, it will not be a factory. However, at the same time, there could be liabilities under other laws such as PF, ESI, Building Construction Workers Act, Labour Welfare Fund Act, etc., which need to be looked into.

KK Nair