Skip to content

CS Professional · Labour Laws and Practice · The Labour Laws (Simplification of Procedure for Furnishing Returns and Maintaining Registers by Certain Establishments) Act, 1988

Malabar Spices Ltd runs a factory in Kochi. In the preceding twelve months its headcount was 42 on one day and 30 on all other days. The employer wants to rely on Section 4 for relief. What is the correct position?

Section 4 relief is unavailable. The definition looks at persons employed on any day of the preceding twelve months, not at averages. Forty-two persons on one day exceeds the limit of forty for a small establishment, and it is far above nine for a very small one.

  1. AIt is a small establishment because the average headcount is below forty
  2. BIt is a small establishment because the maximum for small establishments is forty-two
  3. CIt is not a small establishment, since persons employed on any day exceeded forty, so Section 4 relief is unavailableCorrect
  4. DIt is a very small establishment because most days had fewer than forty persons

Explanation

The definition of small establishment covers those with ten to forty persons employed on any day of the preceding twelve months. Forty-two persons on one day takes it outside this range, and averages are irrelevant. It is also not very small, which requires not more than nine persons. The relief therefore does not apply.

Did you get it right without looking?

One question tells you little. A timed set on The Labour Laws (Simplification of Procedure for Furnishing Returns and Maintaining Registers by Certain Establishments) Act, 1988 shows your real accuracy, how long you take and where you lose marks.

Practise The Labour Laws (Simplification of Procedure for Furnishing Returns and Maintaining Registers by Certain Establishments) Act, 1988Free diagnostic mock

More The Labour Laws (Simplification of Procedure for Furnishing Returns and Maintaining Registers by Certain Establishments) Act, 1988 questions