Do We Still Need to Keep Physical Registers Under the Factories Act Despite Using Payroll Software?

Maintaining Registers Under the Factories Act

We process the salary through advanced payroll software. Everything like attendance, leave, salary preparation, and all the registers and returns can easily be maintained with the help of software. Still, do we need to maintain the following registers under the Factories Act:

1. Muster Roll [Form 25]
2. Wages Register
3. Leave Book [Form 16]
4. Leave with Wages Register [Form 15]
5. Register of Adult Worker

Regards,
Dinesh Kumar
Sr. HR Executive

As per the act, we have to maintain all the records physically. The software is an additional facilitator for the company. Therefore, we have to maintain all the records in registers as per all acts.

Regards,
Srihari

The Challenge of Manual Record-Keeping with Large Employee Numbers

But suppose there are more than 3,000 employees; in this case, we cannot update the muster roll manually, nor can the leave book be updated manually. The same goes for maintaining the register manually, as it is time-consuming. When we are so advanced in introducing new technology, how can it be justified to maintain the register? It is quite the opposite of the concept of "Save Tree Save Earth." When all the reports are readily updated and produced electronically, what is the use of maintaining all these?

Regards,
Dinesh Kumar

Suppose your 3,000 employees are employed at different units, in different places, and you are responsible for auditing the records. Would you solely trust electronic records to certify the muster roll and be 100% satisfied that the wage bill being claimed is accurate? Electronic records are susceptible to manipulation without a trail. Please think from this angle.

Secondly, the muster roll and leave register need not be maintained manually. Periodically, say once a month, you can take a printout, sign it, and preserve it.

Regards,
Ganesh

The answer is still yes. As per the act, you have to maintain all the registers. So, what is the option, you may ask? The answer would be to take written permission from the labor commissioner to avoid maintaining the registers or employ some external consultant who would regularly update all the registers. These registers are the only legal records that can be produced to justify anything rather than compliance records.

Regards,
Manish Gupta