'TAIT Knowledge Series’ Workshop on the theme “Effective Administration of Statutory Compliances” on 19th Jan 2017
TAIT, the premier association of IT companies in Mumbai, that comprises of SME sector IT Vendors, Distributors and Reseller Partners organised a ‘Knowledge Series’ Workshop on the theme “Effective Administration of Statutory Compliances”. The workshop was conducted by Mr. Ramesh Soni, Principal Consultant, RLS Consulting, who emphasised that compliance to statutes is in the best interests of cordial employer-employee relationships, and would in turn lead to the sustained growth of the organisation.
Addressing the participating TAIT members Mr. Soni said, “Statutory compliance is a must for every progressive employer and it is important to comply with the laws of the land to make sure that the organisation plays a positive role in encouraging transparency in business through corporate governance best practices. Usually, if not taken care of during the early days of founding of an organisation, it may impact growth and corporate reputation. In the present competitive globalised business environment, it would be very demanding for an employer to handle statutory compliance without the support of a good payroll management solution.”
“There are a number of statutory compliance needs for Indian companies and they must invest a good proportion of their time in understanding and implementing their payroll management solution to make sure they are fully compliant with all relevant legal rules and regulations.If companies do not successfully adhere to statutory compliance requirements, they may end up having to pay penalties, which would cost several times more than complying with legal guidelines in the first place”, Mr. Soni further added.
Mr. Soni talked about key provisions like Provident Fund (PF), Employees State Insurance Scheme (ESIC), Bonus, Gratuity and related rules to help the TAIT members appreciate their significance in running business operations smoothly. Employers need to comply with statutory requirements based on the number of employees they have on their rolls. Employee benefits such as PF and ESIC are applicable when an organisation crosses a strength of 20 employees or more.
Mr. Soni briefed TAIT delegates about the traits of two types of employers in the SME sector – firstly, those who want to make sure all systems and facilities are available from the day an employee joins the organisation, irrespective of their size; secondly, those who would like to deal with statutory issues as they arise.
He went on to state that there are specific Acts (laws) and Rules applicable to businesses, based on the industry and location. Taking up the Maharashtra Shops & Establishments Act, 1948, Mr. Soni said that to safeguard the interests of workers and to regulate the working conditions of employees engaged in shops, commercial establishments, hotels, theatres and other establishments, the Act came into force on 11th January 1948.
Similarly, the Bombay Shops and Establishments Act is another piece of State legislation. The Act defines the terms “apprentice”, “commercial establishment”, “employee”, “establishment”, and “shop”. It is a comprehensive legislation regulating working hours, rest intervals, weekly holidays, spread-over, leave with wages, health and safety, and employment of women and children. It provides for inspection of commercial establishments and shops by inspectors appointed under the Act. However, the Act is not applicable to Chartered Accountants and Legal Practitioners.