How to start with Labor Laws audit ?
1) First prepare list of basic labor laws which will be applicable.
2) Prepare few basic details on applicability of various section like requirement of canteen, creche, rest room, etc.
3) Prepare few basic details on appointment of welfare officer, safety officer, etc.
Various Points to be checked:
1) Factories act:
– Factory License, nature of business, validity of license and strength of manpower.
– Factory Layout cover each and every department of factory
– Annual returns and half year returns submitted on time with correct details
– All story statutory registers are maintained
– Appointment of Safety Officer, Welfare Officer, if applicable, and its qualification matching as per the act
– Canteen, Creche, rest room facilities are available
2) Contract Labor Act:
First check if this act is applicable to factory and to contractor. General rule say it is applicable for more than 20 contract workers. But it differs differs from state to state, like 10 in Gujarat, 5 in Delhi, 10 in WB.
– Principal Employer Registration, all contractor are listed on RC
– Contractor have valid License
– Contractor have submitted all dues like PF, ESIC, PT, LWF on time.
3) PF, ESIC and PT
– Company have issued UAN, ESIC card to all employees
– All dues are deposited on time
4) Payment of Gratuity Act:
– Gratuity are paid to left employees who have completed 5 years
– Company have authorised one managerial personnel in organisation to receive all notice, letter, communication, etc.
5) Payment of Bonus Act:
– Bonus are paid on time. Returns in Form D is submitted, register are maintained
6) Payment of Wages and Minimum Wages Act:
– All registers are maintained
– Payment of Wages are done on time.
– Wages are paid above minimum wages.
7) Industrial Standing Order:
– Standing orders are certified from Certifying officer
– All the provision of standing order are complied with.
8) Check minutes book of various committees and check if any important complaints raised, whether it is resolved.
9) Maternity Benefit Act: Compliance with provision are complied with.
Disclaimer: Originally written by me. Do not copy paste with your name.
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Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018