Streamlining HR Compliance for a 500+ Employee Car Dealership: What Steps Are Essential?

Dear All, I am in the process of streamlining the HR process in terms of statutory compliance for an automobile showroom. I understand that we have to follow guidelines as per the Shops & Establishment Act. As the employee strength of all branches put together is 500+ employees, I request support and suggestions on the mandatory compliance activities related to the premises and associated employees.

Thanks & Regards.

If any showroom is included in the plan approved by the Inspector of Factories for the service station as one within the premises, then the staff members of the showroom would fall under the provisions of the Factories Act, 1948.

Compliance Requirements for Service Centers and Showrooms

Service centers shall come under the Factories Act, 1948, and showroom branch offices will come under the purview of the Shops & Establishments Act.

Statutory Compliance Needed

You need to comply with the following statutes:

1. PF Act
2. ESI Act
3. Shops & Commercial Establishments Act
- Payment to Labour Welfare Fund
- Remittance of Professional Tax to Panchayat/Municipality/Corporation

For Service Centers

- Compliance under various provisions of the Factories Act
- Maintenance of records, etc.

Payment Obligations

- Payment under the Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act, and Payment of Gratuity Act, etc. (applies to showroom and service center)

Dear BSudars20, in addition to what Radhakrishan Nair said above, you are also liable to comply with the POSH Act at every workplace. It seems from your profile that you are an HR consultant and have undertaken an assignment to streamline the HR processes in terms of statutory compliance for an automobile showroom. Your client appears to be a large company with a presence in multiple locations, possibly across different states, which we are not aware of. You need to also be mindful of the local laws.

If any kind of manufacturing activity, as defined under the Factories Act, is carried out in the showroom, it may fall under the Factories Act. You have to handle this situation delicately and smartly as there are many ambiguities in the laws. Please bear in mind that activities such as repairing, oiling, washing, and cleaning fall under manufacturing activity.

Thank you.

Thank you, @Akhil Bhartiya. I appreciate you bringing up the subject of the implementation of POSH in the workplace. Yes, as you guessed, I have taken up this assignment recently, and the company has its dealer showrooms across the state of Jharkhand (not multi-state though). I have around 9 years of experience, of which 6 years of association has been with a manufacturing MNC.

We plan to implement the compliance measures in phases, streamline the showroom activities first, and then gradually move towards the premises falling under the Factories Act.

Regards,
Sudarshan