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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 Printers, a unit in Pune, employed 8 persons on the busiest day of the last twelve months and never more than that. Under the Act, how is it classified?

Sunrise Printers 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. Its peak headcount of 8 is within that limit, and the type of business does not alter the classification.

  1. AVery small establishmentCorrect
  2. BSmall establishment
  3. CNeither, because printing units are excluded
  4. 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 a maximum of 8, Sunrise Printers falls in that class. The nature of the unit does not change the headcount test.

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