In order to implement the “Business Reform Action Plan 2016- Ease of Doing Business” and liberalize the enforcement of labour laws in the state, the Governor of Haryana has formulated a Third Party Certification / Audit Scheme (Amendment), 2018 (“Scheme”) for factories, shops and commercial establishments (including Start-ups).  A Third Party Auditor / a Compliance Auditor will be conducting audit of the factories and establishments respectively, under the Scheme.

Objective

The Scheme aims at facilitating the entrepreneurs for ensuring compliance with the provisions of the following enactments and to curtail the unnecessary visits of inspecting officers:

1. Factories Act, 1948;
2. Minimum Wages Act, 1948;
3. Payment of Wages Act, 1936;
4. Contract Labour (Regulation and Abolition) Act, 1970;
5. Payment of Bonus Act, 1965;
6. Payment of Gratuity Act, 1972;
7. Maternity Benefit Act, 1961;
8. Child and Adolescent Labour (Prohibition and Regulation) Act, 1986;
9. Punjab Shops and Commercial Establishments Act, 1958;
10. Equal Remuneration Act, 1976;
11. Motor Transport Worker’s Act, 1961;
12. Punjab Industrial Establishments (National & Festival Holidays and Casual and Sick Leave) Act, 1965
13. Inter-State Migrant Workmen (RECS) Act, 1979

Applicability

The Scheme is optional and applies to all shops and commercial establishment and the following types of factories:

1. Where manufacturing processes involve use, storage, handling or processing of toxic or highly inflammable or explosive substances or hazardous chemicals or where such toxic or highly inflammable or explosive substances are likely to be generated or given off as effluents;
2. which are involved hazardous processes as listed in the First Schedule appended to Section 2(cb) of the Factories Act, 1948;
3. Employing more than 250 workers.

Benefits under the Scheme

1. The factory / shop or commercial establishment opting this Scheme will not be inspected by the department, till it carries out safety audit every year. However, the Labour Commissioner / the Chief Inspector of Factories may issue directions for inspection of any such establishment / factory, in case of genuine complaint against it.

1. No legal action will be taken against the occupier / manager of the factory / Head of the establishment / manager for any discrepancies / observations / violations of Acts / Rules pointed out by the auditor in his safety audit report.

Compliance requirement of occupier of a factory / head of establishment

1. Inform the Chief Inspector of Factories / Labour Commissioner, writing, regarding the safety audit / compliance audit within 30 days before commencement of the same.
2. Take action on the recommendation pointed, within 30 days of receipt of audit report and submit the action taken report along with proof of compliance before the Chief Inspector of Factories / Labour Commissioner, within 60 days from the date of the audit.

For a detailed read on the Scheme, please refer to the hyperlink below.

Source: Haryana, Labour Department

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