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

Sunrise Plastics, a workshop in Pune, employed 12 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 it classified?

Sunrise Plastics is a small establishment. The Act defines a small establishment as one employing not less than ten and not more than forty persons on any day of the preceding twelve months, and 12 employees fall within that range.

  1. AVery small establishment, because it has fewer than 20 persons
  2. BSmall establishment, because it employs not less than ten and not more than forty personsCorrect
  3. CNeither, because only factories can be classified under the Act
  4. DSmall establishment only if it employs at least 20 persons

Explanation

A small establishment is one employing not less than ten and not more than forty persons on any day of the preceding twelve months. With 12 persons, Sunrise Plastics falls in this band. The very small category covers only up to nine persons, so the first option is wrong.

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