Delhi Shop And Establishment Act & Labour Laws For Branch Office

Dear Sirs,

Good day. Kindly note that I am working in a shipping company with its main office in Chennai. The company is registered in Chennai and is now planning to open a branch office in Delhi. Employees working in the Delhi office will have their salaries deposited in Chennai, and PF and gratuity will be deducted as per the laws.

Please advise if:
1) This branch office also needs to be registered in Delhi.
2) Any special points that are applicable as per the Delhi Shop and Establishment Act. Will the laws of Chennai also apply to employees in Delhi? Should copies of all Chennai forms be kept in the Delhi office?
3) Are there any special labor laws applicable as per the Delhi Shop and Establishment Act?

Please provide me with information on the above queries. Thank you in advance for your cooperation.

Best regards,
csn

Dear CSN,

As far as Central labor laws are concerned, you are okay complying with those at Chennai after registration at the central office of those laws. However, state labor laws have to be complied with as per state law.

As for the Delhi Shops and Establishment Act, there is no need to worry about this. Up to now, you are required to comply with the registration without any late payment under the Delhi Shops and Establishment Act. You have to keep the records in the prescribed Form G and H, and certain other criteria must be followed as per the enacted law.

If you still have any queries, feel free to contact me for Delhi / NCR.

Regards,

Adv. Raj Singh Phogat

Dear Mr. Phogat,

Good evening. Thank you very much for your information. However, I am unable to understand what needs to be done before we start the branch office in Delhi. If you could list out the requirements that need to be fulfilled from my end to comply with the state laws in a point-wise manner, I can then explain it to my head office and seek approval for the same. Once the head office has a clear understanding, we can utilize your services for the necessary tasks.

Thanks and regards,
csn

Dear CSN,

In addition to Central Taxation Laws (direct tax, indirect tax, service tax, excise, and customs), you have to comply with state taxation laws (value-added tax, stamp duty Act, State excise duty) as well as local body (MCD, NDMC, DDA) taxes applicable as per the nature of business.

I am attaching the list of labor laws of central and state enacted in India, and you have to comply with them as per their applicability to your nature of business.

Your company secretary will also handle the company returns of the branch office, so there is no need to worry about the same.

The applicability of laws to your nature of business will be clear after knowing the trade/business nature.

Thanks.

Adv. Raj Singh Phogat
Labor Law Consultant
7428133893

Dear Mr. Phogat,

Good evening, sir.

Firstly, thank you very much for your reply. I am very grateful to you.

Further to the above query, please note the main job of this branch office is to provide manpower for working on the ship from North India to my head office and arranging all travel documents for them.

For your information, service tax is being paid by my head office in Chennai.

Please advise in this case which state laws I am applicable for or if I am exempted from complying with any of the state laws. All laws followed by my head office in Chennai are sufficient.

Thanks in advance for your reply on the above subject.

Thanks and regards,
CSN

Dear CSN,

I am replying with respect to the labour law legislation applicability with respect to Delhi state as below:-

1. With respect to The Employees’ State Insurance Act, 1948 and The Employees’ Provident fund and Miscellaneous Provisions Act,1952 , there is no problem for the record being kept at the chennai office being the central Acts and authorities too.

2. Wtih respect to the following Acts, no state legislation has taken place and the central acts are accepted and implimented by the central labour officers in Delhi.

a)The Contract Labour (Regulation and Abolition) Act, 1970

b)The Equal Remuneration Act, 1976.

c)The Industrial Disputes Act, 1947

d)The Payment of Bonus Act, 1965

e)The Payment of Gratuity Act, 1972



With respect to sl no-2 acts and their applicability you may maintain the records at the chennai office and in soft copy so that you may show the records to the inspecting authorities when ever is required. Display the relevant Annexures at the Notice board as stipulated in the Acts and Rules.

3. With respect to the following Acts, State authorities are implimenting authorities:

a) The Minimum Wages Act, 1948

b)The Payment of Wages Act, 1936

c)The Maternity Benefit Act, 1961

d)The Industrial Employment (Standing Orders) Act, 1946

e)The Workmen’s Compensation Act, 1923

f)Delhi Shops and Commercial Establishment Act, 1954

Sl No-2 & 3 above are the State List of labour law implimentation and their compliances have to be made in Delhi. However you may comply them at Chennai office but keep the records in the soft copy to show to the inspecting authorities whenever required. Display the relevant part of the Annexures at the Notive Board as stipulated in Acts and Rules.

For any further query you may contact me.

Thanks

Adv. Raj Singh Phogat

7428133893

Dear Mr. Phogat,

Good afternoon. Thank you very much for all the valuable information provided by you. I have no words to thank you. I am very grateful and highly obliged for your answers to my query.

Please reply to one more query - am I required to register my office with NDMC or is it not required as my business nature is that of a service provider and it is a branch office.

From all our discussions, I conclude that this branch office has no additional laws to comply with; everything can be managed at the head office in Chennai, and a copy of the same should be kept at the branch office.

Thanking you in advance for your reply to the above query.

Thanks and regards,
csn

Dear CSN,

You have to register yourself with the Delhi Shops and Commercial Establishment Act, 1954. Moreover, if you run the office for 365 days a year, then you have to apply for the exemption under sections 14, 15, and 16 of this act. You also have to apply to the labor commissioner for keeping the records in soft copy rather than hard copy so that you may not face any problems in operation.

In addition to the above, other state labor laws have to be complied with in due course and not immediately.

Thanks.

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Dear sir,

Can you confirm how to decide where to obtain a labor license, either from the central or state government?

WR//
J.B. Singh

Dear CSN,

Could you please provide a list of registers under the Delhi (State) Contract Labour Act within the National Territory Act? I have checked through Google as well, but have not been able to obtain any information from the available resources.

Sunil Choughule.

Dear Sir,

I want to know if I am to resign from my job, how many days before should I inform my company? Also, if the employer does not pay all my dues, what can I do?

Thank you.

Dear sir,

I want to know if I am to resign from my job, how many days before should I inform my company? Also, if the employer does not pay all my dues, what can I do?

Thank you.

Dear Mr. Raj,

I am working with an educational institute in Delhi. However, we would like to start another new branch institute in Delhi itself. How do I proceed towards it? What are the local laws, and what documents will be required to start up with the new branch?

Many Thanks,
Gopesh

Please suggest to me about union labor - how to handle their demands, relations, etc.

Amol Thakur
7755957393

Dear Mr. Thakur,

If you are an educational institute in Delhi, you must adhere to and comply with the following labor laws:

Applicable Acts:
1) The Employees Provident Funds And Miscellaneous Provisions Act, 1952.
2) Minimum Wages Act, 1946.
3) Contract Labour (Regulation and Abolition) Act, 1970.
4) Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979.
5) Maternity Benefit Act, 1960.
6) Industrial Disputes Act, 1961.
7) Payment of Bonus Act, 1965.
8) Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1966.
9) Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Act, 1988.
10) Child Labour (Prohibition & Regulation) Act, 1986.
11) Equal Remuneration Act, 1976.
12) Payment of Gratuity Act, 1979.

Additionally, as an educational institution, you are also governed by the Delhi School Education Act and must ensure compliance with it and other statutory bodies.

I believe this information provides you with the necessary details to proceed. If you require my services, please do not hesitate to reach out.

Best regards,
Adv. Raj Singh Phogat
7428133893