Dear friends, I need your considered views on the following:
A company in Delhi, which is a private limited company, has fewer than 10 employees at present, as follows:
- Directors (owners): 2
- Managerial staff: 2
- Support staff: 2
- Driver: 1
Total: 7
Additionally, there are temporary interns and freelancers who work as and when required. In the past, the company has had more than 10 employees at one point in time.
The company has issued appointment letters to the managerial staff, which do not specify anything about leave entitlement. The company has no formal system of maintaining records for staff leave, holidays, payment of minimum wages to staff, time of payment of wages/salary, and overtime rates. The management feels that as a small company, it is not obliged to follow any labor laws. However, all payments are recorded in the company's books of account and income tax deductions are claimed.
Queries regarding compliance with labor laws
My queries are as follows:
1. Is the above company covered under the Delhi Shops and Establishment Act? As far as I know, the Delhi Shops and Establishment Act applies to all establishments regardless of the number of employees.
2. Is the above company covered under PF, ESI, Payment of Minimum Wages Act, etc.?
3. What recourse do employees have to compel the company to follow basic labor laws? Can they write to the Labor Inspector?
Please revert with any applicable case laws.
Thanks,
Prakash
A company in Delhi, which is a private limited company, has fewer than 10 employees at present, as follows:
- Directors (owners): 2
- Managerial staff: 2
- Support staff: 2
- Driver: 1
Total: 7
Additionally, there are temporary interns and freelancers who work as and when required. In the past, the company has had more than 10 employees at one point in time.
The company has issued appointment letters to the managerial staff, which do not specify anything about leave entitlement. The company has no formal system of maintaining records for staff leave, holidays, payment of minimum wages to staff, time of payment of wages/salary, and overtime rates. The management feels that as a small company, it is not obliged to follow any labor laws. However, all payments are recorded in the company's books of account and income tax deductions are claimed.
Queries regarding compliance with labor laws
My queries are as follows:
1. Is the above company covered under the Delhi Shops and Establishment Act? As far as I know, the Delhi Shops and Establishment Act applies to all establishments regardless of the number of employees.
2. Is the above company covered under PF, ESI, Payment of Minimum Wages Act, etc.?
3. What recourse do employees have to compel the company to follow basic labor laws? Can they write to the Labor Inspector?
Please revert with any applicable case laws.
Thanks,
Prakash