Hiring 100 Employees Soon: What Labor Law and Factories Act Concerns Should We Address?

Dear All,

We are going to employ 100 people soon. Is there anything we need to consider regarding labor law and the Factories Act apart from amending our Shops and Establishment certificate?

Thank you.

Yes, you have to amend the certificate with additional payment. Under the Shops Act, you would have to pay Rs. 15,000 for less than 99 employees. If it exceeds 99 employees, then the same needs to be amended by paying another Rs. 15,000.

Apart from that, now you will be in a position to follow the organization's standing orders as per the Factory Act.

To comply with the Industrial Disputes Act, it is necessary to establish a works committee when the workforce size reaches 100 employees.

Additionally, in accordance with the Industrial Employment Standing Orders Act, it is essential to create and finalize standing orders specific to your establishment. These standing orders should be submitted to the labor commissioner after obtaining consent from your employees. In Tamil Nadu and Karnataka, this process must be initiated when the employee count reaches 50, while in other states, it applies when the workforce reaches 100.

Need not. Works committee is necessary only if 100 employees are workmen under the ID Act. The same is true in the case of standing orders also.

Varghese Mathew
9961266966

Industrial Disputes Act, 1947

Works Committee

(1) In the case of any industrial establishment where one hundred or more workmen are employed, or have been employed on any day in the preceding twelve months, the appropriate Government may, by general or special order, require the employer to constitute, in the prescribed manner, a Works Committee. This committee should consist of representatives of both employers and workmen engaged in the establishment. However, the number of representatives of workmen on the Committee shall not be less than the number of representatives of the employer. The representatives of the workmen shall be chosen, in the prescribed manner, from among the workmen engaged in the establishment and in consultation with their trade union, if any, registered under the Indian Trade Unions Act, 1926 (16 of 1926).

(2) It shall be the duty of the Works Committee to promote measures for securing and preserving amity and good relations between the employer and workmen. To that end, the Committee shall comment upon matters of their common interest or concern and endeavor to resolve any significant difference of opinion regarding such matters.