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
Mehta Plastics Pvt Ltd runs a small workshop in Vadodara that is covered by a Scheduled Act. On one day in the preceding twelve months it had 8 persons at work, and on no day did it have more than 9. Under the 1988 Act, how is this establishment classified?
It is a very small establishment. The Act defines a very small establishment as one where not more than nine persons are employed, or were employed on any day of the preceding twelve months. The maximum headcount here was nine, so the definition is met.
- AVery small establishment, as not more than nine persons were employed on any day of the preceding twelve monthsCorrect
- BSmall establishment, as it has fewer than ten persons
- CNeither category, as the Act applies only to factories
- DSmall establishment, as any establishment with up to forty persons is small
Explanation
A very small establishment is one in which not more than nine persons are employed or were employed on any day of the preceding twelve months. Here the maximum was 9, so it qualifies. Option B is wrong because a small establishment needs not less than ten and not more than forty persons.
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