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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

Kaveri Plastics in Pune had 35 persons employed on its busiest day in the preceding twelve months. Which statement correctly describes its position under Section 4 of the Act?

Kaveri Plastics is a small establishment because 35 lies between ten and forty persons. Its employer furnishes an annual return in Form I in lieu of returns and maintains registers in Forms II and III at the work spot. The older limit of nineteen no longer applies.

  1. AIt is a very small establishment and keeps only Form III
  2. BIt is a small establishment and files annual return in Form I and keeps registers in Forms II and IIICorrect
  3. CIt is outside the Act because it has more than nineteen persons
  4. DIt is a small establishment and keeps only Form I as its register

Explanation

A small establishment has not less than ten and not more than forty persons (limit raised from nineteen to forty from 1-1-2015). With 35 persons, it qualifies, so it furnishes annual return in Form I and maintains registers in Forms II and III. The nineteen limit is outdated.

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