Don't let Statutory Compliance slow down your business growth!

Statutory compliance refers to the legal framework which organizations must abide by with respect to the treatment of their employees. Most of the company’s time and money goes into ensuring compliance to these laws. Everything to being compliant to the payment of minimum wages to provident fund or maternity benefits needs not just whole lot of time but also experts who can guide on all of these statutory compliance measures.

Appended below please find the point wise things to be checked while preparing Compliance file (Illustration is for Maharashtra state):

Attendance Register

(i) Check whether it's in correct format as per factory Act.

(ii) Check for no. of persons listed in the attendance registers.

(iii) Check for no. of days each person has worked.

(iv) While checking, kindly note that:

(a) It should not be more than 26 days in a month. There should be a ‘day off’, after 48hrs of work.

(b) No person listed in the attendance register should be working more than 08+01 (09) hrs in a day.

(c) No person should have worked more than 48 hrs in a week.

(d) If you find out the number of hours per day for any person exceeding 08+01 (09) hrs, check the endorsement for the same in OT register, for excess hours,for that person.

However, in any case the number of working hours per day should not exceed 10 hrs, per day and the spread over, inclusive of intervals for rest, Shall not exceed 12 hours in any one day. Also, the total number of hours of work in a week, including overtime, shall not exceed 60, and the total number of hours of overtime shall not exceed 50, for any one quarter.

Muster Roll cum Wages Register (Form II):

(i) Check whether it's in correct format as per factory Act.

(ii) Check that name of all the persons in the Attendance Register is available in the Wage Register.

(iii) Ensure that the Basic + DA is as per Minimum Wages for Skilled/Semi Skilled & Unskilled personnel, respectively.

(iv) Check for the number of days paid to an individual are as per Attendance register.

(v) Check for that PF deduction is 12% of Basic + DA + Allowances

(vi) Check for the ESIC Deduction is for personnel up to Rs.21000/- and 0.75% of Gross. (vii) Check for Deduction of PT OF Rs. 175/- for personnel having Salary above Rs. 7500/- and Rs. 200/- for personnel having Salary above Rs. 10000/-. No deduction for personnel having salary below Rs. 7500/-.

(viii) Check for deduction of MLWF .

(ix) Check for OT Payment (If applicable)

OT/Advance/Fine/Damage Registers:

(i) Check for relevant entries, if any. Check with the wage register and Salary Slip.

Salary Slips

(i) Ensure that - No. of days worked, ESI & PF Number is mentioned .

(ii) PF / ESI / PT & MLWF deduction is as per the wage register.

(iii) Check whether the salary is as per wage register.

Bank Statement/ Voucher

(i) Check & tally the amount disbursement is as per the payslip and wage register.

(ii) Check the date of disbursement should be before 07th every month.

PF & ESI

(i) Check for the date of challan for the remittance of payment. It should be before 15th of every month. (ii) Check & Tally the amount disbursement in PF -ECR and ESIC Employee contribution history, is as per the payslip and wage register. (iii) Check that name and PF/ESI deducted amount of all the persons in the Attendance Register and the Wage Register are tallying.

PT & MLWF Challan

(i) Check the dates of the period of challan and date of payment.

WC Policy

Check the period of the policy.

Leave Register (Form - 20)

Submit duly filled leave register .

The most dreaded and the most complicated thing about business is compliance to laws. If not handled properly, these can be one of biggest obstacles to growth. A business operating in India has to comply with various labor laws depending on the geographical location and constitution of the firm/ Company. We assist clients with the maintenance of stipulated records and filing of returns under various laws.

Ms. Shruti Arya

Lead Consultant