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CS Executive · Setting Up of Business, Industrial and Labour Laws · The Labour Laws (Simplification of Procedure for Furnishing Returns and Maintaining Registers by Certain Establishments) Act

Bharat Printers, a newspaper establishment, employed 8 persons on most days, but on one day in the preceding twelve months it employed 12 persons. Under the Act's definitions, how is it classified for that period?

Bharat Printers is a small establishment. The definitions look at the number of persons employed on any day of the preceding twelve months, not an average. Having employed 12 persons on one day, it falls within the ten-to-forty band and cannot be treated as very small.

  1. AVery small establishment, because it normally employs fewer than ten
  2. BSmall establishment, because the test refers to any day of the preceding twelve monthsCorrect
  3. COutside the Act, because its employee numbers fluctuate
  4. DVery small establishment, because averages are used

Explanation

Both definitions count persons employed or employed on any day of the preceding twelve months. Since 12 persons were employed on one day, the establishment falls in the ten to forty range and is small. Very small applies only if not more than nine were employed on any such day. No averaging is provided, so the other options fail.

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