Navigating New HR Systems: Do We Still Need Physical Registers and What If a Labor Officer Visits?

We have recently implemented a punching system, an online attendance system, and a new HRIS in our organization. Given these implementations, do we still need to maintain an Attendance Register, Wage Register, Salary Slip, etc., as all these processes have now moved online?

Steps to Take if a Labor Officer Visits

Kindly advise on what steps to take if a labor officer visits us.

Regards,
Nishant Singh

You need to request an exemption from maintaining a manual attendance and wage register as prescribed under the Minimum Wages Act from the concerned Deputy Labor Commissioner.

In addition to what Mr. Kamal mentioned, I advise you to take a printout of the muster roll, wage register, and overtime register, and keep the records for the completed month. If you are depositing the wages in the bank, attach the receipted copy of the bank remittance details along with the muster roll so that the worker's signature is not required.

Attendance and Payroll Compliance in Maharashtra

In Maharashtra, a manual Attendance Register, Attendance Card, and Payroll are required to be maintained under Section 31 of the Minimum Wages Rule 1963.

To implement a computerized attendance register and payroll, obtaining prior exemption from the Deputy Labor Commissioner is essential.

This pertains to a query about whether you are required to maintain Muster-Roll, Wages Register, and Pay Slips, etc., when you have gone online. I was wondering what "online going" means. What you have done simply is that you have introduced a data collection system for attendance and based on that, you can calculate the salary of employees and other records.

Many factories still have manual attendance systems. Now, let me know whether there is manual attendance marking or automatic marking by a biometric system or anything else. How does this absolve the maintenance of Muster, Wage registers, etc.? It does not exempt you from maintaining the records pertaining to attendance, wage distribution, etc. More and more automated, accurate, fast data entry systems are on their way, but that's only an input method of time record. It does not allow you to dispense with the registers and records of employees. However, for the purposes of easy computing, if you want certain changes or modifications in the format of Wage Register or Attendance, the rules allow that, and with approval from the Labour Commissioner, you can have a suitable format. But you cannot do away with the maintenance of statutory registers, etc.

Challenges with Punching/Attendance Machines

These punching/attendance machines often do not work due to various reasons such as technical faults, electricity problems, injuries to employees' fingers if it is a biometric system, and other issues. There are also risks of data deletion or corruption.

Even though the labor office may permit the discontinuation of manual attendance registers, it is advisable to maintain a manual register, at least for attendance, concurrently with the electronic system. After gaining about a year of experience, a decision can be made regarding the elimination of the manual system.

I am working in a manufacturing company as an HR. My company also wants to install a biometric punching system. Is it possible to connect the punching system to the payroll software so that attendance can be fed directly into the payroll software?

Warm Regards,
Deepak Agarwal