CS Professional · Labour Laws and Practice · The Labour Laws (Simplification of Procedure for Furnishing Returns and Maintaining Registers by Certain Establishments) Act, 1988
Sundaram Textiles, a factory in Coimbatore, employed 8 persons on every day of the preceding twelve months. Under the Labour Laws (Simplification of Procedure for Furnishing Returns and Maintaining Registers by certain Establishments) Act, 1988, how is this establishment classified?
The establishment is a very small establishment. The Act defines this as one where not more than nine persons are employed, or were employed on any day of the preceding twelve months. Eight employees fall within that limit, and a factory is expressly included in the meaning of establishment.
- ASmall establishment
- BVery small establishmentCorrect
- CNeither, because a factory is excluded from the Act
- DSmall establishment, because it is a factory
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. With 8 persons on every day, Sundaram Textiles fits this definition. A factory as defined in the Factories Act, 1948 falls within the meaning of establishment, so it is not excluded.
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