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When establishments need to follow Central Rules of Certain Acts?

Posted by: on 7 February 2019 in Amendments, Business Strategies, Compliance, HR, Human Capital Management, Non classé, Payroll

This post is part of the Coffee Break Guide to Compliance by Anandan Subramaniam. Please subscribe to the blog updates if you’d like to be notified of these posts. Please comment below with your doubts and queries.

The Coffee Break Guide to Compliance – Vol. 30 {When establishments need to follow Central Rules of Certain Acts?}

Is your establishment covered under Central Sphere?

How to identify yourself?

In every Employment legislation, there are essentially 4 specific factors, which determines compliance under the Provisions of such Act/s.

  1. Applicability of the Act
  2. Who is the Appropriate Authority?
  3. What is wages?
  4. Who is an employee?

Appropriate Authority is either State Government or Central Government. For establishments like Railways, Cantonment Boards, Major Ports, Mines and Oilfields, Banking and Insurance Companies, Air Transport Services, controlled industries like Cement, Petroleum industry, Telecommunication, and Central public sector undertakings, Central Government is the Appropriate Authority.

Following is the list of employment enactments which are governed by the respective authorities:

Enacted & Enforced by Central Government  Enacted by Central Government but enforced by both Governments Enacted by Central Government but enforced by State Government Enacted & Enforced by State Government
EPF Act Payment of Wages Act The Employee Compensation Act Shops and Establishments Act
ESI Act Standing Orders Act The Factories Act Labor Welfare Fund Act
Sexual Harassment Act Industrial Disputes Act The Employment Exchanges (Compulsory Notification of Vacancies) Act Subsistence Allowance Act
  Minimum Wages Act   Conferment of Permanent Status Act
  Apprentices Act    
  Maternity Benefit Act    
  Payment of Bonus Act    
  CLRA Act    
  Payment of Gratuity Act    
  Equal Remuneration Act    
  ISMW Act    
  BOCW Act    
  Child Labor Act    
  Labor Laws (exemption from furnishing Returns & maintaining Registers) Act    

Private establishment, which is a Bank or Insurance (both life and non-life) or Mines or Air service companies or Petroleum companies or Telecommunication companies or Cement or Asset Management Companies comes under the purview of Central Sphere. Besides, if you provide any of your establishments’ services through manpower to such establishment which is under the purview of central authorities, you will also come under the purview of the Central Sphere. 

The duty of an employer is as follows: 

  1. Registration – The registration of such establishment is through LIN (Labor Identification Number), which is automatic when such establishment is registered with EPFO or ESI.
  2. Any such establishments need to file annual returns, through online, with details on the following Acts:
    • The Building and other Construction Workers (Regulation of Employment & Conditions of Service) Act, 1996
    • The Contact Labor (regulation and Abolition) Act, 1970
    • The Interstate Migrant Workmen (regulation of Employment and condition of Service) Act, 1979
    • The Employment Provident Funds and Miscellaneous Provision Act, 1953
    • The Employees state Insurance Act, 1948
    • The Mines Act, 1952
    • Regulation 3 of Metalliferous Mines Regulations, 1961
    • The Factories Act, 1948
    • The Motor Transport Workers Act, 1961
    • The Shop & Establishment Act
  3. Obtaining Registration under CLRA while engaging manpower through Vendors.
  4. Ensure the Immediate employer obtains license under CLRA, if applicable.
  5. Ensure payment of Minimum Wages to employees of the establishment and contractual employees, as notified periodically.

Such establishments, irrespective of compliance under Central Sphere, continue to be covered under the State Acts, if not specifically excluded in the provisions of such Acts.  

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TAGS: Anandan Subramaniam Compensation and Benefits Equal Pay Payroll and Compliance The Coffee Break Guide to Compliance

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