LABOUR DEPARTMENT, PUNJAB GOVERNMENT Address: S.C.O.NO. 47-48, SECTOR 17-E, SECOND Floor, CHANDIGRH, India Phone: 0172-2704847 ,Email – lcpboffice@gmail.com

Table of Contents

1 Risk Based Assessment (Classification criteria)................................................................................. 2

2 Inspection/Verification Procedure Steps ........................................................................................ 3

3 Checklist .......................................................................................................................................... 8

4 Inspection Certificate format .......................................................................................................... 9

5 Timelines & other instructions for Inspector .................................................................................. 9

6 Download Inspection Report .......................................................................................................... 9

7 Annexure 1 .................................................................................................................................... 11

1 Risk Based Assessment

This manual is for the Compliance Inspections under The Factories Act, 1948.

Classification criteria :-The Factory/ establishments will be categorized as per the following risk parameters.

Sr.

No

.

Category Name of Category Details of Industry covered under the

category

Periodicity

of

Inspection

1 A i) Highly Hazardous: All Factories posing high risk to

workers and general public i.e. having Off-

Site Emergency Risk and On-Site and which

would require outside help to combat a

serious accident.

Fertilizers, L.P.G. (Bottling and Storage),

Pesticides, Chemical and Pharmaceutical

units

Twice a year

ii) Moderately Hazardous: All Factories with medium

hazard i.e. having On-Site risks only and

wherein the accidents could be controlled

by the resources of the plant itself or with

the help of neighboring units

Solvent Extraction Plants, Hydrogenating

Plants, Paper Mills using Chlorine,

Distilleries, Breweries and Sugar Factories

etc.

Twice a year

iii) Less Hazardous: All Factories except (i) + (ii) with

less hazards potential i.e. where accidents

can be controlled by unit by own resources

Electroplating, Heat treatment plant,

Rubber factories and factories covered

under Section 85 of the Factories Act, 1948

Once a year

2 B Factories involving mechanical and health

hazards

Factories covered under Section 87 and

rules framed under section 21(2) of the

Factories Act, 1948 including Paper Mills,

Textile Mills, Ice Plants/Cold Storages,

Thermal Power Stations and Primary

Metallurgical producing units i.e. Zinc,

Cadmium, Lead, Mercury Nickle,

Aluminium, Copper and Steel.

Once a year

3 C Factories involving health hazards. Tanneries, Paper Mills, not using chlorine,

Board Mills and factories employing 20 or

more workers excepting Brick Kiln,

electronic goods, Printing Presses and Saw

Mills

Once a year

4 D Factories which are less prone to

accidents

Not included in categories ‘A’, ‘B’ and ‘C’

and also the factories manufacturing Bricks

in Klins, Printing Process and Saw Mills etc.

Once a year

2 Inspection/Verification Procedure Steps A. For Self Certification

(http://pblabour.gov.in/Content/documents/pdf/SelfCertificationScheme.pdf )

Detailed Self Certification Procedure

*This Scheme shall be optional and any employer/entrepreneur can opt for this Scheme after applying to the Labour Commissioner in the prescribed Performa .

• Any discrepancy in the application and self declaration shall be communicated to the applicant

within 30 days from the receipt of the application in the office of Labour Commissioner, Punjab. In case no discrepancy is so communicated, the applicant shall be deemed to have been enrolled under the Scheme.

• Any entrepreneurs/ employer who opts for the Scheme shall give Bank

Guarantee in favour of Labour Commissioner, Punjab • Once opted for the Scheme, the same shall be valid for a period of five

years. The employer can at any time opt out of the Scheme by giving intimation to the Labour Commission in writing .

• If during inspection, an employer is found violating any of the labour laws

mentioned in Para 8 of the Scheme then apart from taking legal action under the relevant labour laws, the Bank Guarantee submitted by the employer will be encashed and his registration under this Scheme will stand cancelled.

If he wants to re-opt for the Scheme he will have to give double the Bank Guarantee for his class of

establishment. In case the employer/ entrepreneur successfully completes five years under the Scheme and he does not want to remain in the Scheme or he withdraws from the Scheme prematurely, his Bank Guarantee will be released. He will also have an option to continue in the Scheme for another five years.

LABOUR LAWS FOR WHICH THE SCHEME IS VALID :-

This Scheme shall be valid for following Acts and Rules

made thereunder :-

i Minimum Wages Act, 1948. ii Payment of Wages Act, 1936. iii Contract Labour (Regulation & Abolition) Act, 1970. iv Industrial Employment (Standing Orders) Act, 1946. v Punjab Industrial Establishment (National and Festival Holidays and Casual and Sick Leave)

Act, 1965. vi Punjab Labour Welfare Fund Act, 1965. vii Payment of Bonus Act, 1965. viii Payment of Gratuity Act, 1972. ix Maternity Benefit Act, 1961. x Child Labour (Prohibition & Regulation) Act, 1986. xi Punjab Shops & Commercial Establishment Act, 1958. xii Factories Act, 1948.

INSPECTION PROCEDURE :-

1 To ensure ease of doing business, the inspections of the Establishments covered under the Scheme can be carried out under the directions of Labour Commissioner-cum-Director of Factories only. Under the Scheme about 5-10 percent of the units covered under the Scheme shall be picked up randomly for inspection by the Head of Department every year.

2 However, on specific complaint, only the Labour Commissioner-cum-Director of Factories may order inspection at any time. The inspection will be a joint inspection under the labour laws, Hence it will normally be a one time inspection on authorization by the Labour Commissioner.

3 The Establishments covered under the above Scheme are “ Exempted from physical inspections.” (http://pblabour.gov.in/Content/documents/pdf/SelfCertificationScheme.pdf )

4 A system for identifying establishments that need to be inspected based on computerized risk assessment is in place and the list of factories to be inspected is sent to the field officers from the Head Quarter. It is mandatory that every officer will submit the inspection report online within 48 hours to the department.

B. For Departmental Inspection Detailed Inspection Procedure Steps:

Computerized

Allocation

Notice of Inspection

Site Visit Inspection

report in 48 hours

Non- Compliance

notice

Upload Compliance

Report

Final action

•Computerized allocation of establishments to the concerned inspectors on

the basis of risk classification. This is to be done in the first week of every month. The same inspector will not inspect the same establishment twice consecutively

•Notice of inspection is to be provided on the e-mail communication

provided to the department •The department will ensure that joint/Synchronized visit of the inspectors to

the unit/ establishment for applicable labour/factories act..

•Online submission /uploading of the report by the inspector visiting the

unit/ establishment with a unique member which can be accessed online by employer within 48 hours (as per Inspection format) Users to login to the portal and view and download inspection reports

•The department may issue notice to establishment to rectify defects/

deviations/ non-compliance observed as part of inspection •The establishment to do the necessary/ appropriate compliance and inform

the office about the same •Uploading Compliance report

•Acceptance of compliance report / initiation of proceedings.

B

ased on the risk criteria as given above, factories/establishments get clas

sified into Low, Medium and High risk by the online system itself as shown below:

Factories/establishments get allocated to departmental inspectors using the online system

(as shown below):

A

fter t

inspection is duly carried out, the inspector uploads the inspection report within 48 hours as shown below:

Based on the risk criteria as given above, factories/establishments of Labor Wing get classified into Low, Medium and High risk by the online system itself as shown below:

Factories/establishments get allocated to departmental inspectors of Labor Wing using the online system (as shown below):

After the inspection is duly carried out, the Labor Wing inspector uploads the inspection report within 48 hours as shown below:

3 Check list for Inspection and Procedure under All Labour Laws:

Following is the document checklist which the establishment/unit needs to present at the time of inspection.

A. Contract Labour (R &A) Act,1970 (PRINCIPAL EMPLOYER)

Name & full address of the principle employer

registration(Form -1) Amount of Registration Fee paid

No of Contractors Engaged : Register of contractors (in form - XII). Notice of commencement / completion of the contract work (in form –VI B).

Notice showing the rates of wages, hours of work, wages period, date of payment, name and address of inspectors.

Annual return (in Form - XXV) .(Contractor) Name & Location of Contract work:-

Name & Present address of the Contractor(S). Nature of work in which Contract Labour is Employed Permanent address of the Contractor:- Date of Commencement of the Contract work:- Date of Completion of the Contract work

No. & date of License Wage Register (in Form - XVII) Employment Cards. (in Form - XIV) Muster Roll (in Form - XVI).

Register of persons employed (in Form XIII). Register Wages (in Form XIX)

Register of Advance (in Form XXII) Register of overtime. (in Form XXIII) Register of deductions for damage or loss (in Form - XX).

Register of fines (in form - XXI).

Notice of commencement of the contract work (in form –VI A). Half yearly return (in Form XXIV)

Amenities under Health & Welfare Provision For contract Labour Like

(Depending upon no. of workers) Canteen. Rest Room.

First Aid Box.

Urinals & latrines.

Drinking Water.

Washing Facility.

(B) Minimum Wages Act, 1948

Register of fine. (in Form I)

Register of deduction for damage or loss (in Form - II).

Register of Wages (in Form X)

Overtime Register for Workers (in Form - IV).

Muster Roll (in Form-V).

Wages Slip (in Form-XI).

Annual Returns (in Form-III).

Attendance card.

Abstract of act and name of inspecting authorities (R22) (C) Payment of Gratuity Act, 1972

No. of employees who have been paid their gratuity and mode of payment

No of employees, who have not been paid their gratuity and reason in brief.

Notice of opening (in Form - A)/Notice of change (in Form -B)/ Notice of Clouser(Form -C).

Nomination (in Form - F).\ Abstracts of the Act & Rules (in Form U).

(D) Payment of Bonus Act, 1965

Percentage of bonus paid : ________ for the accounting year ________.

Certified copies of Profit and Loss.

Account books.

Balance sheet.

Attendance and payment of wages registers.

Form A(Computation of Allocable surplus under Section 2(4)).

Form B(set-on and set-off of allocable surplus under section 15.)

Form C (Bonus paid to Employers for the Accounting year ending on .)

Annual Return in Form D.

(E) Equal Remuneration Act, 1976

Register in form ‘D’.

(F) Punjab shops and commercial establishment act 1958

FORM B

FORM F

Register of employees in FORM C

Register of wages of employees in FORM D

Register of deductions in FORM E

(G) Payment of Wages act 1936

Payment register

Ensure payment of wages to employees on 7/10 of every month

Abstract of act ( S 25)

Pay day notice (R8)

Annual return

Maternity Benefit Act 1961

Muster Roll in FORM A

Notice of maternity benefit by women employee in FORM B

Proof of pregnancy,delivery of child or miscarriage in Form C

Abstract of Act in FORM K

Annual Return in FORM L,M,N,O

Labour Welfare Fund Act 1965

Form A (Register of Wages)

Form B (Register of Fines realized and unpaid accumulation)

(J) Inspection Check List for Employers under the Factory Act, 1948:-

Obtain license to run the factory as required under Section 6 of the Act and also will get it renewed [rule 7, 8, 10 and 14].

Get approved the building plans of the factory from the Directorate of Factories in accordance

with the provisions of Section 6 of the Act and rule 3A and 4. If the premises is extended including plant and machinery, the proposed building plans of the extension will be got

approved prior to construction.

Comply with the general duties prescribed for the occupier [section 7-A of the Factories Act, 1948].

Fix the weekly hours, weekly holidays, compensatory holidays, daily hours, intervals for rest, spread over period, night shifts, prohibition of over lapping shifts [section 51, 52, 53, 54, 55, 56, 57 and 58 of the Act].

Pay extra wages of overtime as twice of the ordinary rate of wages. Display the following notices at the conspicuous places in factory premises:-

i) Notice of period of work for adults in form XI ii) Escape in case of fire : R-66 iii) Safe speed notice of machinery in motion: Section 30 iv) Extract of the Factories Act and Rules: R-106 v) Name and address of the inspecting staff: S-108

Maintain the following registers:-

i) Attendance Register Rule 110

ii) Inspection Book Rules 112

iii) Adult worker Register Rule 87

iv) Accident Register Rule 111

v) Tight Clothing Register Rule 58

vi) Leave with Wages Register Rule 94-A

vii) Lime Washing Register Rule 18

viii) Compensatory Holidays Register Rule 83

ix) Extra Wages for Overtime Register Rule 85-A

x) Register of Child Workers Rule 93

xi) Particulars of Rooms Register Rule 6 Issue the attendance cards and leave cards to all the workers under rule 110 (3)

and 95. Give the annual leave with wages as per rule 79. Submit the annual return in form 21 . Abide by the provisions of Factories Act, 1948 and the rules framed thereunder by the

Punjab Govt. from time to time.

4 Inspection Certificate format Inspection Certificate format for Departmental Certification in case of low, medium and high risk are available in the Annexure 1.

5 Timelines & other instructions for Inspector 1. The inspector must upload the Inspection Report within 48 hours of the physical inspection 2. Inspectors will be selected randomly through computerized allocation 3. Same inspector will not inspect the same establishment twice consecutively.

4. Users can login, view and download the inspection report uploaded by the

inspector only after 48 hours of inspection.

6 Download Inspection Report Downloading inspection report Users can login, view and download the inspection report uploaded by the inspector only after 48 hours of inspection. Stepwise Procedure

i. Login using single window login credentials

ii. After successful login, User can download inspection report.

iii. On e-dashboard, click on “Download” under Inspection

7 Annexure 1

A. Format of Departmental Certification

JOINT INSPECTION OF LABOUR WING AND FACTORY WING

The new industrial policy demands that certain changes should be made in

inspection procedure so as to remove the hassles and irritants faced by the

entrepreneurs.

Manual joint inspection was started in 12-12-1994 . Now the department

has started online web portal whereby inspector can generate joint inspection

report from Oct-2016 , which consist of inspection report of factory wing and

labour wing and submission of inspection report by the officers within 48 hours.

On line system allow users to login to the portal and view and download

submitted inspection reports of their factory.

From,

Labour Commisioner , punjab, Chandigarh

To,

All the Assistant Labour commissioner/Labour-cum-conciliation officer.

No.ST/2016/14106 -14128 Dated,Chandigarh: 13-6-2016

.

Subject:- Regarding Inspections Reference:- This office letter no. ST/2015/25216-247 dated 18-11-2015 on the subject

Cited above.

On the subject cited above ,it is hereby informed that the list of establishments under your jurisdiction which are being sent by in those cases inspections has to be conducted by Labour Inspector of other circle instead of concerned circle.Therefore you are hereby directed to issue rotation wise orders to the inspectors so that their circle should change every month as this is suggested by bureau of investment promotion.These instructions be followed in full spirit in future.

-Sd-

Additional Labour Commisioner For Labour Commissioner,Punjab

From

Labour Commissioner, Punjab.

To

All the Deputy/Assistant Director of Factories of the State.

No. 8971-993

Dated, Chandigarh.17-08-2016

Subject: - Regarding Conducting Joint Inspections as per guidelines of “Ease of doing Business”.

Keeping in view of guidelines of ease of doing business on the above subject, list of Joint Inspections of 20 factories is being sent to you by the undersigned every month. You are advised to send the time schedule for conducting joint Inspections to concerned Assistant Labour Commissioners/ Labour-cum-Conciliation Officers, so that Joint

Inspections may be conducted. Kindly ensure sending copy of time schedule duly prepared on

website lcpb office@gmail.com .

Sd/- Labour Commissioner, Punjab.

Ends NO. Dated, Chandigarh

A copy is forwarded to All Assistant Labour Commissioners/ Labour-cum-

Conciliation Officers with the direction to issue instructions to concerned Labour Inspectors

to conduct joint Inspections as per list of factories sent by this office and time schedule sent

by Deputy/Assistant Director of Factories.

Sd/- Labour Commissioner, Punjab.