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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

Sunrise Packaging Works in Pune employs 8 persons on its busiest day in the last 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 firm is a very small establishment. The Act defines a very small establishment as one employing not more than nine persons on any day of the preceding twelve months, and a peak of eight persons fits within that limit.

  1. AVery small establishment, because not more than nine persons are employedCorrect
  2. BSmall establishment, because it employs fewer than forty persons
  3. CNeither, because the Act applies only to factories with at least ten workers
  4. DSmall establishment, because it employs at least five persons

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 at the peak, the firm falls in this class. The 'small' class begins only at ten persons, so the second option is wrong.

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