Navigating Statutory Compliance for FMCG and Retail: Can You Help with State-wise Requirements?

Dear Seniors,

I need help with statutory compliances for FMCG and retail stores nationwide, such as Dmart and others. I tried to search for the details on this portal but have not succeeded. Can anyone please help me with the following:

Statutory compliances state-wise

1. What are the statutory compliances state-wise?

EPF and ESI code requirements

2. Can only one EPF and ESI code suffice, or do we need to obtain state-wise code numbers? For PF & ESI, can we generate sub-codes/subunit codes?

Acts applicable to Maharashtra

3. Regarding the Bonus Act, Maternity Benefit Act, Payment of Gratuity Act, Contract Labour Act (R&A), and Interstate Migrant Worker Act, do all these acts need to be followed for Maharashtra only? Since the head office is in Mumbai. (Some acts from the above list may be central.)

Additional applicable acts

4. Are there any other acts remaining in addition to those mentioned in point 3?

Thank you.

Central and State Acts for EPF and ESI Registration

There are some Acts that are state subjects and others central. You can take one registration for EPF for the entire organization. With the online facilities in force, you need not take subcodes for EPF for each state or region. However, if you take a subcode for EPF, the employees of the respective region can seek advice from the EPF Office directly as well. Legally, a centralized EPF code is sufficient for the entire organization.

ESI Registration Requirements

For ESI, you should register at the head office level but take subcodes at regional levels. Unlike EPF, under ESI, the need for employees to appear before the local/branch office of ESI is more frequent, and therefore, it is advisable to have separate subcodes for each region within each state. Subcodes can be easily obtained once you have an RC for the main office.

Coverage Under Various Acts

Your establishment will be covered by the Payment of Bonus Act, Maternity Benefits Act, CLRA Act, Interstate Migrant Workers' Act, etc. An establishment shall include your branches in other states as well. Therefore, the coverage will depend on the number of employees in all the branches combined. Since there is no separate registration under the Payment of Bonus Act or Maternity Benefits Act, the coverage is automatic once you employ the required number of employees. Indeed, the Payment of Bonus Act will only be applicable from the year in which you make profits or five years after the commencement of business, whichever is earlier.

Applicability of CLRA and ISMW Act

CLRA and ISMW Act are applicable when you engage contract workers and interstate migrant workers. The latter will depend on whether there is a contractor to engage the interstate migrant workers. If you have branches in different states, the appropriate authority for the settlement of disputes will be Central, and as such, the appropriate authority for the Contract Labour Act will also be the Central Labour Commissioner/Assistant Labour Commissioner (Central). They can issue a certificate for the organization covering the entire country. However, for the Interstate Migrant Labour Act, you may have to obtain separate registration for each state as the appropriate authority under the said Act is the state government in respect of trading establishments and establishments other than those falling under the central sphere, banking, and insurance.