Tuesday, August 25, 2020

Labor Law Compliance in Haryana

The Haryana Labor Department's Portal can be accessed here. Your establishment should create an account on this portal for all eligible filing under various applicable laws online, and to access the latest notifications in their regard. The Ministry of Labor & Employment also has a Shram Suvidha Portal for all necessary information.



Applicability - For salaried employees with Basic Salary + Dearness Allowance less than Rs.15,000 per month, it is mandatory to open a PF account through the employer. Establishments with 20 employees or more are mandatorily required to register for the EPF scheme. Others can register voluntarily. Employees drawing a salary higher than Rs. 15,000 per month can also register voluntarily.

The employer's contribution is calculated as 12% of  Basic + DA. An equal amount is contributed by the employee as well. Out of the employer’s contribution of 12%, 8.33% is directed to Employees’ Pension Scheme. This amount is calculated on the salary of Rs 15,000. Thus, for every employee receiving a Basic amount equal to Rs 15,000 or more, Rs 1,250 each month is invested into EPS. The amount in addition to 8.33% is retained by the EPF scheme. On retirement, the employee receives his entire share plus the share retained to his credit. 

Registration - Online on the EPF Portal. The process for registering is given here and here. Employees have to obtain a UAN through their employers, which is their registration number with the EPF Scheme.

Returns - The amount is paid monthly before the 15th of the subsequent month through a challan online on the portal after logging in.

Forms - All other forms and processes are given on the official EPF website.

Penalty - Late payment invites interest @ 12% p.a. for every single day of delay. Further, penalty from 5% to 25% may be levied depending on the number of months of delay.




Applicability - All factories and other establishments with 10 or more employees.

Registration - Online registration for employer with detail of employees.

Compliance - ESI is payable for those employees whose monthly wage does not exceed Rs 21,000. The contribution rates are 3.25% being the employer share and 0.75% being the employee's share. You can read more about the scheme and its benefits here.

Return - Has to be filed in the form of a challan payment every month by the 15th, with contribution for the immediately preceding month. The portal for making the payment is here.

Penalty - Non payment of the contribution invites maximum imprisonment between 6 months to 3 years, and fine of Rs. 5000, or both.


Applicability - Factories and every other establishments, which employs 20 or more workmen and is at least 5 years old and the company has made in profit in the financial year. The Payment of Bonus Act provides for a minimum bonus of 8.33% of wages. The salary limited fixed for eligibility purposes is Rs. 21,000. The maximum statutory bonus that can be paid out is 20% of Rs. 7,000 (or minimum wages, whichever is higher).

Registration - None

Compliance - Mandatory filing of Annual Return in Form D with Labor Officer

Mode - Offline

Records - Register to be maintained in Form A, B and C

Penalty - 6 months' imprisonment and/or penalty up to Rs. 1000



Applicability - Factories, mines, oil fields, plantations, ports, railways, motor transport undertakings, companies, and to shops and other establishments employing 10 or more workmen. The Act provides for payment of gratuity at the rate of 15 days wages for each completed year of service subject to a maximum of Rs. 10 lakh for every person who has had at least 5 years of completed service with the company. The amount is paid on retirement or superannuation or death/disablement.

Compliance - Mandatory - need to submit Form A for notice of opening of establishment to the concerned Central Labour Office and display the same at office premises.

Return Filing 

Form No.   Ref. to Statute   Description   Due date to be submitted to
             
Form ‘A’   Rule 3(1)   Notice of opening   Within 30 days of opening of the branch
             
Form ‘B’   Rule 3(2)   Notice of closure   Within 30 days of closing of the branch
             
Form ‘F’   Rule 6(1)   Declaration of Nomination   Within 30 days from the date of joining of the employee
             
Form ‘I’   Rule 7(1)   Application for Gratuity by an employee   After completion of 5 and more years
             
Form ‘J’   Rule 7(2)   Application for Gratuity by a Nominee   After the death of the employee
             
Form ‘K’   Rule 7(3)   Application for Gratuity by a legal Heir    

Mode - Offline

Records - Information to be filed as referenced above. Companies may choose to buy a gratuity scheme policy from insurance companies by which they pay an annual premium computed by the insurer, and gratuity liability is paid off from the fund created under such scheme.

Penalty - Punishable with imprisonment for a term which may extend to six months to one year, or with fine which may extend to Rs. 1000, or with both.

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 - POSH

Applicability - Any establishment having 10 or more employees including interns, laborers, etc. is required to constitute an Internal Complaints Committee (ICC) with a minimum of 4 members and that half of such members must be women with a lady Presiding Officer.

If a workplace has less than 10 employees, all complaints must go to the local complaints committee set up as per the Act by district officers of each district.

Registration - None

Compliance - Mandatory filing of Annual Return before 31st Jan; Formation of Internal Complaints Committee (ICC) - display members' list in the office; conduct four workshops a year

Mode - Offline

Records - POSH Policy, List of ICC Members, Minutes of all Meetings

Penalty - Penalty may extend to Rs. 50,000 and also result in punishment under IPC


The Punjab Shops & Commercial Establishments Act, 1958 (applies to Haryana)

Registration - Mandatory at the time of commencement of business on all businesses except those specifically excluded as per the list given in Section 4 of the Act linked above. To be renewed every 3 years.

Mode - Online registration followed by offline submissions

Fee Structure - For registration and renewals is given here

Records - Employees KYC, payroll and attendance records 

Penalty - In case of failure to register, the employer shall be liable for conviction to a fine which shall not be less than Rs 1000 but may extended to Rs 3000 along with the prescribed registration or renewal fee. The employer shall be liable on conviction to a fine not exceeding Rs 100 for the first offence and Rs 300 for every subsequent offence.



Applicability - 10 or more employees including contractual labor

Registration - None

Compliance - Mandatory deduction and payment of LWF contribution on monthly frequency and submission of an annual return - each employee shall contribute to the Fund every month an amount equal to 0.2% of his salary or wages subject to a limit of Rs. 25/- and each employer in respect of each such employee shall contribute to the Fund every month, twice the amount contributed by such employee.

Any payment due to an employee but remaining unpaid with the employer for a period of two years including wages, bonus, gratuity etc. is to be transferred by the management to the Board.

Return Filing - Monthly deduction from salary to be deposited along with annual return before 31st Jan. In case any employee wishes to avail benefits of the Fund, the process for the same is given here.

Mode - Online on the Haryana Portal here.

Records - The relevant forms are given on Pages 20-22 of the pdf document.

Penalty - 2% of contribution amount for each month


The Minimum Wages Act, 1948  (& Rules, 1950)

Applicability - The Act empowers the Government to fix minimum wages for employees working in specified employments. This primarily applies to factory establishments and other establishments where wage earners are employed. It provides for review and revision of minimum wages already fixed after suitable intervals not exceeding five years. The minimum wage rates in Haryana can be accessed here.

Compliance - Wages must be paid before the expiry of the 7th day after the last day of the wage period, if less than 1000 workmen are employed and in other case on the 10th day. Display a notice showing the days on which wages are to be paid.

Return Filing - Annual (Format on Page 20 of the Rules)

Mode - Offline

Records - Register of wages to be maintained along with details of attendance, leaves, fines, advance, deduction and overtime - Formats from Page 18 of the Rules

Penalty - Imprisonment for a term which may extend to 6 months, or with fine which may extend to Rs. 500, or both



Applicability - All factories where 10 or more workers are employed with the use of power, or 20 or more workers are employed without the use of power, engaged in manufacturing activities.

Registration - For registration, licensing and renewals, an online application has to be filed on the portal here.

Compliance - Approval of factory plans, stability, fee structure, return filing, renewal of licenses and other formats are given as part of The Punjab Factory Rules, 1952 (as applicable to Haryana).

Records

S.No.
  
Records To Be Maintained
  
Form No.
  
Section & Rule
             
1
  
Humidity Register
  
6
  
15(1)-Rule 22
             
2
  
Record of Lime-washing painting
  
7
  
11(1)(d) Rules 16 & 105(e)
             
3
  
Record of Examination of Pressure Vessel
  
8
  
31- Rule 56
 
or Plant
    
       
             
4
  
Register of Compensatory holidays
  
9
  
53 Rule 77
     
             
5
  
Overtime Muster Roll for Exempted workers
  
10
  
59-Rule 78
     
             
6
  
Register of adult workers
  
12
  
62-Rule 80
             
7
  
Register of Young Workers
  
14
  
68&69- Rule 86
             
8
  
Register of Leave with wages
  
15
  
83&112-Rule 87
             
9
  
Health Register
  
17
  
10(4)-Rule 14(5)
             
10
  
Muster Roll for Adult Workers
  
25
  
25A-Rule 103A
             
11
  
Register of Accidents
  
26
  
Rule 104
             
12
  
Register of Dangerous Occurrences
  
26A
  
Rule 104
             
13
  
Register of exemptions
  
28
  
Rule 105(a)
     
             
14
  
Particulars of Rooms in the factory
  
29
  
Rule 105-106
             
15
  
Register of Specially Trained Adult Workers
  
35
  
Rule 53
             
16
  
Record of examination of Hoist & lifts
  
36
  
28-Rule 55
             
17
  
Record of Eye Examination
  
38
  
Rule  61-K(4)
     
             
18
  
Pre Employment Health Register
  
39
  
87-Rule 95



Applicability - Every establishment 

Compliance - Duty of employer to pay equal remuneration to men and women workers for same work or work of a similar nature, and not to discriminate at the time of hiring

Registration - None

Return Filing - None

Records - Maintain register in Form D. All forms and register formats given in the Rules here.

Penalty -  Imprisonment for a term which may extend to 1 month or with fine which may extend to Rs. 10,000 or with both.



Registration - None

Compliance - Ever worker shall be allowed 3 national holidays, 5 other holidays as specified in the Schedule to this Act (Page 7 of the linked document). The same may be circulated and displayed as Notice.


The Contract Labour (Regulation & Abolition) Act, 1970

Applicability - Every establishment in which 20 or more contractual workmen are employed or were employed on any day of the preceding 12 months as Contract Labour; and to every contractor who employs or employed 20 or more workmen on any day of the preceding 12 months.

Registration - Mandatory license up to 31st December and the license to be renewed annually with an application 30 days in advance

Compliance - The Principal Employer shall submit an application in FORM-I (CL) in triplicate for Registration of Establishment to the Registering Officer, (Contract Labour) IR-II Branch, Labour Department, 30 Bays Building, Sector-17, Chandigarh within 15 days after coming into existence of establishment. The application shall be accompanied by treasury receipt in token of the payment of prescribed fee for registration of the establishment.

The other forms, license fees and renewal details are given here.

Return Filing - Send an Annual Return in Form-21(CL) in duplicate so as to reach the authorities by 15th February following the close of the year. 

Mode - Offline

Records - Register of contract in Form-8(CL), 9(CL), display notice showing the rates of wages, hours of work, wage period, dates of payment of wages, names and address of the Inspector of his jurisdiction at a conspicuous place. Copy of the abstract should be sent to the Area Inspector.

Penalty - May be Rs. 200 to Rs. 500 per day since day of deployment of labor or applicability.


There are a number of other labor laws which may apply to your organization such as
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