LEGAL REQUIREMENTS TO BE FULFILLED FOR OPENING A NEW FACTORY: All industrial activities are governed by certain legal provisions

that come in force from time to time. A few of them are given here with brief explanation for your understanding.

GENERAL LEGALITIES Factories Act, 1948

This is applicable to enterprises where the number of employees is: Ten or more and where power is used; or Twenty or more and power is not used. The enterprises covered under the Act are required to keep certain records: Muster Roll Workers Register Overtime Register Advance Register Register for Fine Register for Deductions Register of Wages Register of Accidents and Dangerous Occurrences Bond Inspection Book Register of Cleaning and White Washing Record of Examination of Parts of Machinery There is another Act known as Shops & Establishment Act which is applicable to shops and business undertakings employing 5 or more persons.

Workmen Compensation Act

The objective of this Act is that in the case of an employment injury compensation be provided to the injured workman and in case of his death to his dependants.

Employees Provident Fund & Miscellaneous Provisions Act, 1952

The Act applies to every factory or establishment employing 20 or more employees. It, however, exempts a factory or establishment for an initial period of 3 years from commencement of business if the number of employees is more than 50 and for an initial period of 5 years if the number of employees is less than 50. The minimum contribution payable by the employer is 12% of the basic salary contribution and Dearness Allowance. The employee also makes an equal contribution. The Act, however, does not specify a maximum contribution.

Employees State Insurance Act

It provides benefits to employees in case of sickness, maternity and employment injury and for certain other matters in relation thereto. The Act also provides for payment of contributions by employers and employees at the rates specified in the First Schedule of the Act. The existing rates of employees contribution vary according to wages and the employers contribution is exactly double the employees contribution. It shall apply to factories employing 20 or more people.

Payment of Wages Act, 1936

This Act is applicable to factories and establishments, which come under The Factories Act. The act is restricted in its application to the class of workers whose wages range upto Rs.1,600/- per month.

Minimum Wages Act, 1948

The employer has to pay minimum wages to employees in certain scheduled industries. Any employer who contravenes the provision relating to the payment of minimum rates of wages fixed hours of work stipulated for constituting a normal working day as per the Act shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to Rs. 500/- or with both.

Central Excise (CE)

The Central Government is empowered to levy excise on all articles manufactured in India except alcohol, alcoholic preparations and narcotics. The liability to duty starts the moment a new commodity is manufactured.

Sales Tax
Sales tax is tax levied by state and centre. Tax charged by state is called LST or Local Sales Tax and tax charged by Centre is known as CST or Central Sales Tax. The latter is charged when goods move out of a state.

Pollution Control Act

The State Air and Water Pollution Control Board is the body responsible for implementing this Act. The act is applicable to all kinds of industry.

Trade Union Act

India is the abode of innumerous acts and regulations for the benefit of the trade unions which bestow due powers to the working class. For the safeguard of the rights of the labour class, Indian Government came up with the Indian Trade Union Act in 1926. There are a host of requirements that are to be adhered to in the above mentioned Acts and other such Acts to enable proper statutory establishment of the factory.

HUMAN RESOURCE PLANNING FOR THE NEW PLANT Manpower planning is the process by which an organization ensures that it has the right number and kinds of people capable of effectively and efficiently completing those tasks that are in direct support of the companys mission and strategic goals. PROCESS OF HRP:
1. Establishing corporate goals and objectives: Senior managers define objectives for the

organization for the next 5-20 years. These objectives are broad statements that establish goals the organization will achieve
2. Assessing the human resources requirement: Assessing the human resources begins by

developing a profile of the organizations employees. This is an internal analysis that includes information about the workers and the skills they would require to work in the newly set up factory. Inputs could be taken from the plants already existing. This information has value in other HRM activities, such as selecting individuals for training and development, promotion, and transfers.
3. Estimating the supplies and demand for labor: Once an assessment of organizations

current human resources situation has been made and future direction of organization has been considered , a projection of future manpower demand can be developed. After that future suppliers of manpower are determined. This supply may be internal or external. Internal supply comes trough transfers-in, individuals returning from leaves. External supply mainly comes trough new hires
4. Matching demand with supplies of labor: At this stage HR department combines data

of future demand for workers and supply for human resources, both current and future. The result of this effort is to match shortages both in number and kind; to highlight areas where overstaffing may exist.

HUMAN RESOURCE PLANNING

COMPENSATION AND BENEFITS: The compensation and benefits should be planned in accordance with the statutory requirements and the existing parameters of the other TTK plants as the Trade Unions are satisfied with the way the management has been functioning, and in case of any unrest, it has been dissolved amiably.