We are covered under the Shops and Establishments Act, 1958. Under this act, we are required to maintain a salary register in Form C and Form D, which includes a field for wage rate. We have been maintaining the register as the law requires, but I am concerned about the potential dangers of not keeping salary data confidential. Revealing such information can significantly demotivate employees.

I am struggling to find a middle ground where my company meets legal requirements while ensuring that the HR department can maintain the confidentiality of the salary data. Seniors, please advise.

Best Regards,
Harsh

From India, Delhi
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I think if your management does not have any way out for this, you can suggest to them, and you can also keep them in safe custody. Being in the HR department, salary is such an issue that needs to be kept safe.

If you are a new employee, first know about the workings of the management and how the previous HR personnel in your position used to keep this data safe, and then decide on what to do.

Regards,
Rivti

From India, Delhi
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Hi Rivti,

I joined this company recently, as you correctly guessed. The management agrees that the data must be kept secret, but so far, nothing has been done by any of my predecessors. Now the problem is, what is the way out? The register is in a format where employees have access to each other's salary data. Is there a substitute for Form C and Form D? Please suggest.

From India, Delhi
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What does the REGISTER contain..........and why it is made PUBLIC.......Segregate the important and unimportant..... Regards, Rivti
From India, Delhi
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It is in a prescribed format as stated by the Shops and Commercial Establishments Act. Let me see if I can find the format online. I would put it here. All employees have to sign it, and it is, therefore, public. :(

BRs
Harsh

From India, Delhi
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As per the provisions of the Shop and Establishment Act, you are required to maintain the salary register in the prescribed form. The prescribed register will have to be produced to the Shop and Establishment Inspector or such appropriate authority as the law requires. That does not mean that it is open for inspection to everyone. Yes, the co-employees will, during the course of getting payments, may get some information about the salary of other staff too; that is unavoidable, but that is not unhealthy. You see, the law requires maintaining various registers/records, etc., so that employers maintain a true account of the payments and the employees don't suffer at the hands of unscrupulous employers, and unwanted disputes between the employer and employee are avoided. This is the law of the land, and we have no option but to fall in line.

DEEPAK THUKRAL

CHANDIGARH

From India, Chandigarh
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Dear Harsh, Who has access to the wage register? It should only be a couple of people in HR and Payroll who have access to this information. Is there a need to make it more pubic? Regards, Aparna

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Dear Aparna,

It is to be signed by the employees every day (FORM C) and at the end of every month at the time of salary (FORM D).

It is also not possible for only HR and the payroll team to have access to it, and not others because we have stores not only in Chandigarh but also in other places. Therefore, for employees to sign it, the register has to be available on-site, and thus, everyone has access to it.

Please suggest any way out. I feel stuck.

Best regards,
Harsh

From India, Delhi
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Dear Deepak,

I do understand that the law requires us to maintain the register, but I still feel it is dangerous and unhealthy for people to know each other's salaries.

And hey Chandigarh... Where do you work?

Best Regards,
Harsh


From India, Delhi
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Hi all,

As I am new in HR, this is my first experience in HR. Can any of you please tell me if Form C and Form D are only meant for shop establishments? Could anyone send me samples of Form C and Form D?

Our company is based in Bangalore and operates in the telecom domain. We are focused on MSG solutions and are just starting out.

Thank you,
Anita

From India, Bangalore
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You can pay the salary through the bank and get an exemption from the labor department to maintain the salary register. On the other hand, you can give the individual a payslip and get it signed on the counterfoil.

Most labor laws are made to keep the employee-employer relationship harmonious. I hope this information will be useful.

Thanks,
RDSharavanan

From India, Madras
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Hi, Sure it is useful, and moreover, hopeful. We do pay salaries through the bank. Are you sure about the part where an exemption can be sought from the labor department so that we need not maintain the registers? I ask this because it was only after my HR legal chap said that there is no way out that I posted this query here! Please revert with an idea. Best Regards, Harsh
From India, Delhi
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Hi,

You can get an exemption from maintaining manual registers by opting for a computerized attendance system. Through this system, individual employees will only need to swipe their card in the Barcoder and will not have to interact with the register. Additionally, for the salary register, when you provide individual employees with a payslip that is different from the Salary register, they will not have access to other employees' salaries, and any salary-related queries will be specific to the individual employee.

General queries typically revolve around the Payscale for their grade, attendance, monthly calculations related to incentives, etc.

With Regards,
Balaji

From India, Coimbatore
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Hi,

As per my knowledge, it's not necessary to get the salary register signed from each and every employee. One needs to sign when the salary is paid to him/her in cash. It's not necessary if paid through cheque or transferred to the bank. For cash, you can get the voucher signed instead of the salary register from the employee to whom the salary is paid in cash and keep a record of the same in the remarks column in the salary register. The best and most secure method is to prepare the salary in Excel or maintain the soft copy for the same. Make the salary sheet password-protected. I hope I have addressed your concern.

Regards,
Priyanka

From India, Delhi
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Dear Friends,

Mr. Harsh is asking how to keep the register in a confidential mood. Mr. Harsh, you may suggest to your management the following approach. Additionally, you should obtain permission from the local labor department to collect confidential signatures from individuals on the "PAYSLIP" itself. To do this, create a copy of each payslip, affix a revenue stamp on one copy, have the individual sign it, and file it. Typically, the salaries of employees in big companies are deposited in bank SB accounts, which should suffice. However, you must secure written permission from the local labor department for this process.

Regards,
PBS KUMAR

From India, Kakinada
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Harsh, Can you be specific as to which industry you belong. For eg: i am in IT - software services. Then it maybe easier to answer your query. UNS.
From India, Pune
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