Hello All, For Eg; A company which manufactures fire alarm circuit panels with 100 manpower in omr area, chennai. Which act the company has to follow or which act the company falls under. Either Factories or S&CE act???
If factories / S&CE act,
1. How many leave (CL,PL,SL) can be given?
2. What is the minimum wages (Basic & DA)?
3. How the salary structure/breakup has to be done. In what percentage components to be allotted?
4. Can a person be employed without PF & ESI during his probationary period of 3-6 months?
5. What are all the statutory registers to be maintained?
6. What kind of insurance/accidental benefits to be covered for Non-ESI members?
Please guide. Thanks for your reply in advance.

From India, Chennai
Hi Buddy,

I try to answer your question which I able to do

Your company falls under the definition of factory & Manufacturing process according to factories act-1948 hence your company falls under Factories Act therefore you have to follow the provisions listed in TamilNadu Factories Rules-1950

1. There is CL/SL mentioned in the factories act, company can frame leave policy for their own however for PL/EL, an adult employee is eligible to get One day paid leave for 20 days of working. (please refer the Act).

2. If you employing workers under the scheduled employment mentioned in the Minimum wages act-1948 than you have to pay minimum wages which is determined by state so please refer state minimum wages notification.

3. I don't no

4. During probation employees are eligible to become member of ESI & PF.

5. Please refer Tamil Nadu Factories Rules-1950 and various act which is applicable to your factory example-Bonus act,Payment of wages act etc.

6. I don't No

With Regards

Mr.Thumbs Up

From India, Chennai
* 1. There is no CL/SL mentioned in the factories act, company can frame leave policy for their own however for PL/EL, an adult employee is eligible to get One day paid leave for 20 days of working. (please refer the Act).
correction buddy

From India, Chennai
Mr. Praveen answered some basic provisions. I am adding some more.

1. How many leave (CL,PL,SL) can be given?

An employee will be eligible for Paid leave, if he had worked for minimum 240 days in a calender year. Which will be calculated by one leave will be added for every 20 days of present in factory.

2. What is the minimum wages (Basic & DA)?

Check your state government's gazette notifications for the same.

3. How the salary structure / breakup has to be done. In what percentage components to be allotted?

Make sure that the breakup should not less than minimum wages. There is no rule or law mentioning to fix the structure. You need to have Basic + DA compulsory. you can have other allowances like, HRA, Educational allowance, Special allowances, Travel allowances, Medical allowances, etc.,

4. Can a person be employed without PF & ESI during his probationary period of 3-6 months?

Every person has to be covered under PF and ESIC if they are under coverage limits. Even daily wage worker in that case also need to be covered.

5. What are all the statutory registers to be maintained?

Muster roll (Form 25), Wage register, Leave with wage register, Over time register, National holidays and festival holidays register, Payslips to be given under prescribed format, ID card, Fines and damages register, Suspension register, Health register, Workmen register, adult register, etc.,

6. What kind of insurance/accidental benefits to be covered for Non-ESI members?

If an employee gross salary is more than 15k per month, he will not be covered under ESIC. For them, you need to cover them under Employees compensation insurance policy.

Please guide. Thanks for your reply in advance.

From India, Chennai
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