SKY Enterprises, a newly registered firm, intends to start a small manufacturing unit and will operate with only 25 workers. The management of SKY Enterprises is concerned about the compliance burden related to maintaini

CS Executive · Setting Up of Business, Industrial and Labour Laws · PYQS · June 2025
SKY Enterprises, a newly registered firm, intends to start a small manufacturing unit and will operate with only 25 workers. The management of SKY Enterprises is concerned about the compliance burden related to maintaining various registers and submitting multiple returns under different labour laws. The newly appointed HR head has come across the Simplification of Procedure for Furnishing Returns and Maintaining Registers by Certain Establishments Act, 1988, and believes the firm may be eligible for an exemption as a small establishment. Based on the provisions of this Act, answer the following questions: What are the eligibility criteria for SKY Enterprises to avail the exemption under this Act?

Answer & Explanation:

Answer 6(b) (i) Eligibility Criteria: As per Section 2(e) of the Simplification of Procedure for Furnishing Returns and Maintaining Registers by Certain Establishments Act, 1988 (the Act), small establishment means an establishment in which not less than ten and not more than forty persons are employed or were employed on any day of the preceding twelve months. Since SKY Enterprises has 25 workers, it qualifies as a 'small establishment' and can avail of the benefits and exemption under this Act.

Topics: Labour Laws

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