Surprise visit from Labour department, below are the list of documents asked for and resumed the surprise audit.
- Combined muster roll last 3 months (Form T)
- Over Time Register
- Fine Register
- Damage Register
- Advance Register
- Annual Returns
- Half Yearly Returns
- Pay Slip
- Appointment Letter
- Identity Card
- Form A & F Under Payment of Gratuity Act 1972
- Form – D under Equal Remuneration Act 1936
- Form – D under Bonus Act
- Form “X” and “XIII” under Minimum Wages Act – 1948
- License should be obtained under Applicable Labour Law
- Shops & Establishment – Form C / Annual Returns / Acknowledgement
- GST certificate & PAN Card
- EPF & ESI Registration
Notice Received during Audit
- Also the other check what they did was w.r.t Shops and Establishment – the office gave notice to two companies in our floor for not updating the number of employees in Form C , e.g. the respective org had only 6 employees while Form C registration and the actual employee count is 99 .. So they have received the notice from labour department.
- Fyi for Point 11 (Form A & F Under Payment of Gratuity Act 1972) – Even if the gratuity amount is not included in the CTC (cost to company), if the company has more than 10 employees on any day in the preceding 12 months, the employer is required to register for the Payment of Gratuity Act, 1972 and comply with its provisions.
- Under the act, an employer is required to pay gratuity to an employee who has completed at least 5 years of continuous service in the establishment. The amount of gratuity payable is calculated as a certain multiple of the employee’s last drawn salary, subject to a maximum limit of Rs. 20 lakhs.
- If the employer fails to register for the act or does not comply with its provisions, they can face legal consequences, including penalties and fines. It is therefore important for employers to ensure that they comply with the provisions of the Payment of Gratuity Act, regardless of whether the gratuity amount is included in the CTC or not.