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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 Textiles, a factory in Surat, employs 25 persons. Under the Labour Laws (Simplification of Procedure for Furnishing Returns and Maintaining Registers by certain Establishments) Act, 1988, how is Sunrise Textiles classified?

Sunrise Textiles is a small establishment. The Act defines a small establishment as one employing at least ten and at most forty persons on any day of the preceding twelve months, and a factory falls within the definition of establishment. With 25 employees it qualifies.

  1. AVery small establishment
  2. BSmall establishmentCorrect
  3. CNeither, because the Act covers only plantations
  4. DNeither, because factories are excluded from the Act

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 25 persons, the factory is a small establishment. A factory is expressly included in the definition of establishment, so the exclusion options are wrong.

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