Follow Us:
Ashish Baid

Government of Haryana formulated the scheme of “Third Party Certification” (hereinafter referred as “TPC”) vide its Notification No.11/38/2016-4Lab dated 10th August, 2016.

It is formulated to simplify the business regulations. History is evident that Labour Laws and compliance in terms of the Labour Laws were never took so serious by entrepreneur, for the reason that, like Statutory audit or Internal audit, there was no law passed where it was mandatory to conduct audit under Labour Laws. Well, this Scheme is boom for both, professional to perform the skill in Labour Law compliance audit and for industries, to compare their performance in terms of Applicable Laws and whether all the applicable provision of the Laws are complied with.

In olden days, filing of annual returns, maintenance of Muster Roll and proper payment of wages were considered as 100% compliances in terms of Labour Law. In today’s corporate world, investor also wants to invest in the companies or into business, where the company have less litigation, compliances and relations with the Government departments are properly maintained. Government department never impose any fines or penalty if the Company are compliant with the applicable laws. Company have to bear lot of financial losses due to heavy fines and penalties are imposed on the manufacturing businesses.

TPC Scheme will cover both Factories and Shops and commercial Establishment.

TPC scheme is optional and will cover the compliance of the following Laws:

1) Minimum Wages Act, 1948

2) Payment of Wages Act, 1936

3) Contract Labour (Regulation and Abolition) Act, 1970

4) Payment of Bonus Act, 1965

5) Payment of Gratuity Act, 1972

6) Maternity Benefit Act, 1961

7) Child Labour (Prohibition & Regulation) Act

8) Punjab Shops and Commercial Establishments Act

9) Equal Remuneration Act 1976

10) Motor Transport Workers’ Act

11) Punjab Industrial Establishments (National & Festival Holidays & Casual and Sick Leave) act

Who can certify the TPC Scheme ?

The said scheme can be certified only by Compliance Auditor.

Compliance Auditor are:

1) The Practising Company Secretary (“PCS”), who is a member of the Institute of Company Secretaries of India (“ICSI”) as per Section 3 of the Company Secretary Act, 1980.

2) Approved by Central Government

3) Who was not into employment / on payroll of the establishment in the unit where he is conducting audit / consultant for the establishment for last three years.

What is the major benefit for complying with the requirement of TPC Scheme ?

The units which submit the TPC Scheme will not be inspected by any Inspector / Labour Commissioner through any random list of inspection. This unit(s) will be inspected only when there is any serious complaints.

Standards laid down under various Labour Laws:

1) PCS should maintain log book with the details :

– Name and address of the units audited

– Name of the person carried out, contact person, date of audit conducted and date of submission of audit report

2) PCS and authorised person should not disclose any facts, secret, working process, confidential information, even after he ceases to be auditor of any unit(s), failure to which, he may be liable for criminal or civil proceeding.

3) If PCS has not done audit in line with the provisions of any acts or rules and regulations framed thereunder, he can be debarred from conducting TPC audit.

4) Audit Schedule should be shared with Labour Commissioner by both, Head of the establishment and by Auditor, 30 days in advance before the commencement of the audit.

5) On receipt of the Audit Report by the Head, he shall make the action plan, submit the same to the Labour Commissioner along with the necessary supporting / document(s)

6) Such establishment need not carry any inspection if they are opting for TPC Scheme and conducting audit periodically on annual basis.

Disclaimer: This article is written purely from the point of view of PCS, Compliance Auditor.

(Author can be reached at 8097979445 or on ashishbaid.2009@gmail.com)



Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Post by Date
July 2024