Navigating Statutory Compliance and HR Implementation Challenges

Dear Senior,

Greetings for the day. Recently, I joined a construction-based firm in Hyderabad. The firm has been incorporated and functioning for 13 years. However, the strange thing is that there are no statutory provisions implemented here, such as PF and ESI. This means that whatever salary is negotiated with new employees is their take-home pay at all levels without any deductions.

As an HR person, if I want to implement all the above-mentioned statutory requirements, will it be possible now, or will it lead to any statutory complications? Kindly suggest. I am eagerly awaiting your valuable suggestions.

Thanks & Regards,
Rakesh

Hi,

My friend has a problem. Can anyone guide regarding that? He was relieved from X company on March 12, 2013, and joined Y company on the same day. When he is going to join Z company, will that create an issue?

Best Regards,
Arun

Mr. Rakesh Vaduluri,

You can call me to discuss the implementation of ESI, PF, and other statutory matters.

Varghese Mathew
09961266966

Dear Rakesh,

Greetings of the day.

Your said company has to come under BOCW ACT 1996. They have to take registration under this Act before the start of any job. For their offices, they have to take registration under the Shops and Establishment Act. Other compliances include:

1. Registration under EPFO
2. Registration Under ESIC
3. Registration and Enrollment under Professional Tax Act
4. Income Tax
5. Employees Compensation Act if ESIC is not applicable for people.
6. Registration under Contract Labour (R&A) Act 1972
etc.

There are several Local Acts, State Acts to be maintained.

Regards,

Soubhik

Dear Friend,

There are a lot of problems during inspection. A better way is to close the company or start a new company/firm with another PAN card and register it with the Shop Act, EPFO, ESIC, PT, LWF, and obtain other local registrations/licenses. This will prevent any type of problems from arising. Best of luck.

Regards,
N. Dilip
Labour Law Consulting, Auditing, Payroll Outsourcing & Outsourcing
Navi Mumbai
Branch Office - Nagpur
Email: vidarbhaind@ymail.com

Dear Mr. Soubhik/Mr. Dilip,

Greetings for the day. Thank you very much for your valuable information. Yes, it's time to take a huge step for me with respect to the implementation of the above-mentioned. But could anyone suggest how I should approach and present the Proposals & Consequences to the higher management? Help me out...

Thanks in advance.

Regards, Rakesh

Dear Rakesh,

To start up a business, someone has to bell the cat. Tell the higher management that if they want to work with Multinationals and other companies, they should ask for Statutory Compliance. Registration under CLRA ACT (R&A) ACT 1970 is a must. Maintaining of Registers under the Act is required. Trade License, Service Tax registration, and PAN number are necessary. PF registration and compliance with the Employees Compensation Act 1923 are needed. Before providing you with the contract, the Principal Employer will ask you these questions before PQ (Pre-qualification of a Vendor) or before registering you as a Vendor under them. Please approach.

Regards

Hi Rakesh,

You should inform management about the potential consequences during inspections if you decide to proceed with registering under PF/ESIC/PT/LWF, etc., based on the current business situation.

Additionally, I offer Payroll Outsourcing Services through an agreement between myself and the client. I will handle the submission of all registration documents and ensure compliance with the Principal Employer. This arrangement essentially involves you acting as a subcontractor, with all your employees being on my company's payroll. I will manage all necessary compliance, so no issues should arise. However, it is important that you obtain permission from your clients to subcontract from a compliance perspective.

Regards,
N. Dilip
86555 76111

Mr. Rakesh,

I have already explained to you over the phone how to register under EPF and ESI Acts.

Varghese Mathew