Comment on the significant role of Company Secretary in Labour Audit and how does it strengthen the industrial relations ?

Labour Audit envisages a systematic scrutiny of records prescribed under labour legislations by an independent professional like Company Secretary in Whole Time Practice (hereinafter referred to as PCS), who shall report the compliance and non-compliance/extent of compliance and conditions of labour in the Indian industry/Factory/ Other Commercial Establishments. The Report should ideally, be addressed to the appropriate government. The appropriate government may provide for filing fees for such report on the lines of filing fees charged by Registrar of Companies for the documents filed with them. Scope of Labour Audit The audit should cover all labour legislations applicable to an Industry/factory or other commercial establishments. If a particular piece of labour legislation is not applicable to a specific employer, the same should distinctly be disclosed in the report of an Independent Professional like Company Secretary in Whole Time Practice. Benefits to the Labour Introduction of Labour Audit will boost the morale of the workers to a large extent. It will increase their Social Security. It will inculcate a sense of belongingness in workers towards their employer. It will secure timely payment of wages, gratuity, bonus, overtime, compensation etc. of the workers. Timely payment of entitlements will reduce absenteeism in the organisation. Benefits to Employer Increased productivity in view of lower absenteeism in the enterprise. Higher the productivity, higher will be the profit. Status in the society for the employer will increase, in view of the recognition that may be bestowed on them by the Government. Strict compliance of all labour legislations will be ensured by each of the employers, which, in turn, will reduce or even eliminate penalties / damages / fines that may be imposed by the Government. Co-operation of and understanding with the workers will improve labour relations. The congenial atmosphere is indispensable for good corporate governance. Benefits to the Government Reduction in the number of field staff for inspection of Industries/Factories/ Commercial Establishments as most of their work will be done by an Independent Professional like Company Secretary in Whole Time Practice. Compulsory Labour Audit will ensure compliance of past defaults. In case the Government seeks to introduce filing fees for Compliance Report under Labour Legislation, the revenue of the Appropriate Government will rise phenomenally. India's image before the International Labour Organisation will improve as a country with negligible non-compliance of labour legislation.