Hello Auditor

What are LLP’s obligations under labour laws?

Applicability of Labour Laws

• LLPs are subject to central and state labour laws like any business

• Laws apply based on number of employees and type of work

• Key acts include EPF Act, ESIC Act, Payment of Wages Act, etc.

• Applicability depends on wage limits, working hours, and employee category

• LLP must ensure compliance if it hires regular staff or workers

Registration and Contribution

• Must register for EPFO if employing 20 or more eligible staff

• ESIC registration is mandatory if employing 10 or more eligible staff

• LLP must contribute employer’s share to EPF and ESIC schemes

• Must deduct and deposit employee contributions monthly

• Contributions must be filed within due dates using respective portals

Wage and Employment Conditions

• LLP must pay minimum wages as per applicable state laws

• Ensure timely salary payment as per Payment of Wages Act

• Maintain work hours and leave policies under Shops & Establishments Act

• Provide appointment letters and maintain attendance records

• Follow laws related to overtime, holidays, and workplace safety

Compliance and Record Keeping

• Maintain registers for wages, muster rolls, leave, and deductions

• File returns with EPFO, ESIC, and labour departments periodically

• Ensure timely renewal of labour-related registrations and licenses

• Display statutory notices at workplace as required by law

• Appoint compliance officer or consultant for proper handling

Penalties for Non-Compliance

• Penalties include fines, interest, and prosecution under labour acts

• Delay in contributions attracts financial liabilities and legal action

• Employees may file complaints before labour commissioner or tribunals

• LLP’s designated partners may be held personally liable in serious violations

• Continuous compliance builds employee trust and avoids legal risks

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