Government of Telangana Labour Department

Ease of Doing Business – Regulatory Compliances –

Recent Initiatives

• The complexity of regulatory processes and the difficulty in compliance has been cited as an impediment to the economic development, such as Manual Process, Manual Approvals, indiscriminate Inspections, lack of transparency etc

• Information technology as enabler to make

governance more efficient and effective, resulting in ease of compliance and improved regulatory framework for business in Telangana.

Introduction

Services:

1. Registrations/Renewals(Licensing)

2. Online Inspection System

3. Integrated Annual Returns

4. Grievance Redressal System

5. Labour Acts and Rules e-books

6. Relevant Govt. Orders/Notifications

7. Standard Operating Procedures/Checklists

8. Payment of Welfare Fund

Schemes:

1. Third Party Audit

2. Self Certification

Features

Registration and renewals are done through Online system.

Approval of certificates is mandated with in 30 days of making application under the amended laws, else deemed approval will be issued.

Auto-renewal of certificates on payment of annual fee.

Digitally signed and can be downloaded and printed any time.

SMS alerts and online tracking of applications.

Online payment of Fees through Credit/Debit/NIFT Gateways

Registration & Renewals

Sl.No

Name of the Act Registration/L

icense Renewals

Amendment

1 Telangana Shops & Estt Act, 1988 (Auto Approval)

(Auto Approval on Payment of Annual fee)

Yes

2 Contract Labour Act, 1970

Principal Employer Yes NA Yes

Contractors Yes (Auto Approval on Payment of Annual fee)

Yes

3 Interstate Migrant Workmen Act, 1979

Principal Employer Yes NA Yes

Contractors Yes (Auto Approval on Payment of Annual fee)

Yes

4 Motor Transport Workers Act, 1961

Yes (Auto Approval on Payment of Annual fee)

Yes

5 Building and Other Construction Workers Act, 1996

Yes NA

6 Beedi & Cigar Workers Act, 1966 Yes (Auto Approval on Payment of Annual fee)

Yes

7 Labour Welfare Fund Online Payment

* Deemed approval provision after 30 days of submission of application

Registration and Renewals

Orders are issued vide GO No.13 Dt.14.7.2020, regulating the Inspections

1. Computerized Risk Assessment based Inspections basing on random allotment of

the Inspectors.

2. Prior Notices will be issued, Generation of Notice online, and communication in 48

hours

3. Submission of Compliance report online within (2) weeks

4. Joint Inspections combining Labour & Factory Depts

5. Complaint based Inspections on approval of the Commissioner of Labour

Online Inspection System

Category Low Risk Medium Risk High Risk

Shops & Estts Act CL Act, ISMW Act

< 30 employees 31-100 > 100

Factories - do - < 50 workers > 50 workers

BOCW Estts, Beedi & Cigar Estts

- - All

Other Estt including factories

< 30 employees 31-100 > 100

Frequency Once in 5 years Once in 3 years Once in 2 years

Exemption from Inspections

Exemption from Inspections • Shops & Establishment Act < 20 employees. • Motor Transport Workers Act < 20 • Contract Labour Act < 20 • Interstate Migrant workmen Act <10 • Estt covered under Factories Act < 20 Total Exemption: • Star Hotels, • Information Technology / Information Technology Enabled

Services Units, • Export Processing Zone Units, Export oriented Units, Bio-Tech

Units, Tourism Promotion Units • Low risk estt opting for self certification • Medium risk who opts for third party audit • Startups for 1 year if self declarartion is filed, will be continued

after wards if Integrated Returns are filed

Self Certificate Scheme

1. It’s a Voluntary Scheme.

2. Employers are free to Join or Not, and no time limit to join the scheme.

3. Enables to medium and high risk industries to come in to low risk category, hence Inspection will be once in 5 years.

4. To enroll, need to apply online through website, will be approved within 60 days subjected to the payment of Security deposit in the form of bank guarantee(valid for 5 years), for the amounts mentioned below:

No. of Employees Security Deposit (in Rs.)

Up to 20 Workmen 5,000

21 – 100 10,000

101 - 300 30,000

301 – 500 40,000

More than 500 50,000

Self Certificate Scheme Conditions: The Security Deposit is returnable to the establishment after 5 years, it can be forfeited in the following circumstances.

1. On failure to file Annual Return under the Scheme 2. On failure to maintain the prescribed Register(s).

3. On failure to take corrective action on the deficiency pointed out during the inspections

5. On failure to fully comply with the provisions pertaining to workers health and safety, which led to an accident in the factory If wants to exit the deposit will be deducted as follows, 20% if the Establishment exit is before one year, 40% if the exit is between 1 to 2 years, 60% if the exit is between 2 to 3 years, 80% if the exit is between 3 to 4 years and 100 % if the exit is after 4 years

Third Party Audit Scheme

Third Party Audit Scheme is meant to be for Medium Risk Industries / Establishments.

Application for inclusion shall be applied ONLINE for enrollment.

The Empanelled Auditor firms will conduct the auditing as per the checklist provided.

The scheme shall cover compliance and audit requirements as applicable for all the Inspections under various Labour Laws.

Third Party Audit Report shall be submitted within 90 days to the dept, failing which the establishment will be unrolled from the scheme.

The employer will be a required to take corrective action and upload compliance report within 15 days of Audit.

if on scrutiny of the audit report, if in-compliance of the labour laws, the establishment will be exempted from inspection by the department for a period of 2 years from the date of enrolment.

1. Introduction of Common annual Return in Form-I , in place quarterly, half yearly and annual returns under the following (14) laws.

1. The Contract Labour (Regulation & Abolition) Act, 1970 2. The Inter State Migrant workers’ (Regulation of Employment) Act, 1979, 3. The Minimum Wages Act. 1948 4. The Payment of Wages Act, 1936 5. The Motor Transport Workers Act, 1961 6. The Building and Other Constructions Workers Act, 1996 7. The Beedi and Cigar Workers (Condition of Employment) Act, 1966 8. Telangana Shops and Establishments Act, 1988 9. The Factories Act, 1948 10. Industrial dispute rules, 1957 11. The Building and Other Construction Workers Welfare Cess Act. 1996 12. The Payment of Bonus Rules 1975 13. The Payment of Gratuity Act, 1972 14. The Maternity Benefit Act

2. It has to be filed online on or before 30th April of every succeeding year Integrated Register: 1. Integrated Register in Form-II and Form-III together can be maintained in place of multiple

registers. 2. Registers are allowed to be maintained in electronic format also.

Integrated Annual Return

Special Exemptions to IT/ITES Establishments

Orders issued vide G.O.Ms.No. 25 Dated: 25-07-2019 LET&F Dept

• Exemption from the provisions of sections 15, 16, 21, 23 and 31 of the Telangana Shops and Establishments Act, 1988 for a period of five (5) years w.e.f 30.5.2018 subject to certain conditions

• Details of exemption: 1. Sec 15 - Opening and closing hours 2. Sec 16 - Daily and weekly hours of work 3. Sec 21 - Special provision for young persons (6am-7pm) 4. Sec 23 - Special provision for women (6 am-8.30pm) 5. Sec 31 - Other holidays (9) – Closure on holidays, Compensatory Holidays, OT

Payment

Conditions (a) Weekly working hours for an employee shall be 48 hours. For the work done beyond 48 hours, employee is entitled for

overtime wages. (b) Every employee shall be given a weekly off. (c) The management is permitted to engage young and women employees during the night shift subject to provision of

adequate security during the course of employment and to and fro transport from their respective residences. (d) Every employee shall be provided with identity cards and all other welfare measures to which they are eligible as per

the rules in force (e) Every employee shall be given a compensatory holiday in lieu of notified holidays, with wages under the provision to

sub-section (2) of section 31 of the Telangana Shops and Establishments Act 1988 if they work on notified holidays. (f) The companies shall obtain Bio-data of each driver and conduct pre employment screening of the antecedents of all

drivers employed on their own or through outsourcing. The details such as driving license, photographs, address, telephone No/Mobile No. etc. of drivers shall be available with the respective companies.

(g) The schedule and route of the pickup and drop shall be decided by the supervisory officer of the company on every Monday (if Monday is holiday the next working day in a week). In case of exigencies change of drivers/routes/shifts shall be allowed only with the prior knowledge of supervisory officers/employees.

(h) The telephone number particularly mobile phone numbers and addresses of the women employee shall not be disclosed to unauthorized persons.

(i) Careful selection of routes shall be made in such a way that no women employees shall be picked up first and dropped last.

(j) It is desirable that the company shall provide security guards for night shift vehicles with GPRS facilities. (k) The designated supervisors of the company shall randomly check the vehicle on various routes. (l) Company shall have a control room/ travel desk for monitoring vehicle movements; and (m) The exemption granted in these orders may be revoked at any time without any prior notice. (n) The time after / before which security should be provided to women employees for cab drop offs / pickups should be

specified. Suggested as before 6 am and after 8 pm. (o) General exemption from maintenance of various statutory registers in hard copies and recognition of soft copy of

Registers as sufficient compliance. (p) If the above conditions are violated, the exemption orders issued to the company shall be revoked by the Government

at any time without prior notice. (q) The conditions stipulated above shall not be detrimental to the employees working in the said establishments.

Reduction of regulatory compliance burden

Sl.No Details Compliances

Total Compliances identified 658 1 Already Complied: 103 2 Compliance Simplified/Self Certification (G.O.Rt.No.106

Dt.15.2.2021 ): 415 3 Compliances exempted(G.O.Rt.No.106 Dt.15.2.2021 ): 140

Steps taken: • Display requirements are exempted. • Most Notices are either exempted or allowed to be communicated through electronic

mode. • Self Certification of compliances to be filed online. • Filing an online single integrated return. • Burden of compliance is reduced or simplified without effecting the statutory benefits

to the employees.

Sl.No Name of the Act Compliances

Identified Exempted/Simp

lified

1 Contract Labour (Prohibition and Regulation) Act, 1970 & Rules

73 73

2 Industrial Employment (Standing Orders) Act 1946 & Rules 65 65

3 Inter State Migrant Workmen Act 1979 & Rules 160 160

4 Maternity Benefit Act 1961 21 21

5 Minimum Wages Act 1948 & Rules 46 46

6 Payment of Gratuity Act 1972 & Rules 23 23

7 Payment of Wages Act 1936 & Rules 40 40

8 Motor Transport Workers Act 1961 & Rules 61 61

9 Telangana Factories and Establishments (National, Festival and other Holidays) Act 1974

12 12

10 Telangana Labour Welfare Fund Act, 1987 & Rules 9 9

11 Telangana Shops and Establishment Act, 1988 & Rules 123 123

12 Child and Adolescent Labour Prohibition And Regulation Act, 1986

21 21

13 Inspections 4 4

658 658

Reduction of Regulatory compliance – Act Wise