CHAPTER 9 AUDIT UNDER LABOUR LEGISLATION

INTRODUCTION The objective of labor audit is to protect the interests of all the stake holders. Labour audit is also a process of fact finding.it is a continuous process. Under the constitution of India, labour is a subject I of the concurrent list where both the central and state governments are competent to enact legislation. Labour audit envisages a systematic scrutiny of records prescribed under labour legislations by an independent professional like company secretary in Whole Time Practice who shall report the compliance and noncompliance/extent of compliance and conditions of labour in the Indian industry/factory or other commercial establishment. The report should ideally be addressed to the appropriate government. The appropriate government may provide for filling fees for such report on the lines of filling fees charged by registrar of the companies for the documents filed by them.

SCOPE OF LABOUR AUDIT The mode of disclosure has to be decided in consultation with the ministry of labour. METHODOLOGY OF CONDUCT OF LABOUR AUDIT Independent professional like company secretary in whole time practice are responsible for defining the scope of labour audit and should also identify various central and state acts and rules that are applicable to an employer . BENEFITs OF LABOUR AUDIT Benefits to labour benefits to employer benefits to government

Benefits to labour It will boost the morale of the worker to a large extent Increasing their social security It brings an sense of belongingness towards the employer It will secure timely payment of wages , gratuity, bonus and overtime to the workers Hence absenteeism will be reduced to a large extent BENEFITS TO EMPLOYER Increase productivity because of lower absenteeism of labour Status in society will increase

BENEFITS TO GOVERNMENT Field staff for inspection will be reduced to a great extent as independent people like CS are there to check and correct the mistakes Revenue will also increase if government introduce filing fees for compliance reports India’s image before the INTERNATIONAL LABOUR ORGANISATION will improve