Navigating labour authority notices can be a challenging task, but fear not – we’ve got your back! Let’s delve into the art of crafting effective responses that not only address concerns but also showcase your commitment to compliance.
Notices from labour authorities can be of two types:
- Answer queries, provide further information and proof regarding compliance.
- Explain why a certain compliance has not been done. E.g. a registration has not been obtained, a register has not been kept as per the format prescribed, a contribution has not been made, a form has not been filed, etc.
How do you respond to such notices?
Imagine that you received a notice yesterday from the Labour Commissioner in South Delhi asking you why you have not complied with the provisions of the Contract Labour Act.
The notice was sent on 15th March, 2023 but you received it yesterday only through courier. You have a period of 10 days to respond as per the notice.
1 – Refer to the date and number of the notice
Respected Sir,
This is with reference to your [type of notice/letter] notice dated ___.
2 – Mention what the notice is asking you to do
It has been mentioned that …[mention whatever goes against you or what the notice demands, e.g. details of contributions against contract labour, etc.]
3 – Respond in the timeline mentioned in the notice
- Mention the date in your reply, and confirm that you are responding in time.
- If you receive the notice late, and you still do not have necessary information for the response and the deadline is near, send a letter requesting an extension.
You can draft 2 lines on chat to practice this.
- Mention the date of receipt of the letter. You have a fixed number of days to respond to each letter, but you want the calculation of time to start from the time you received it.
For this date of receipt by your office is very important. In case of a large organisation, it may take some additional time to receive the notice on your table.
If you specify this, the authorities may grant additional consideration to this factor and may grant you additional time.
- If you have requested additional time, do not wait for any confirmations from the authorities and send the information requested at your own initiative. Also annex the previous letter that you had sent requesting extension of time.
4 – State your clarification/answer/explanation
As requested, please find enclosed copies of ______. , or
The returns under [name of Act] are not filed with your office because for our establishment, the Central Government is the appropriate government as per Section ___ of the [name of Act].
We were not able to respond in time because the corporate office had shifted a week before receipt of your letter. However, the information requested is below.
PF contributions were not made because we did not have the minimum number of eligible employees under the PF Act. Details of all employees and their remuneration is provided in the annexure.
In some cases you will need to place your argument, e.g.:
We have not maintained returns and registers as per the Central Government Rules because the State Rules are applicable to us as per Section ___ of ___ Act. Accordingly, all our registers are as per the format in the State Rules.
Certainly! Here’s the revised version in US English:
It is crucial to consider two key aspects in this context:
- Collaborate with other internal departments, particularly finance and accounts, or engage a relevant external consultant. Avoid sending incomplete or half-baked information. In the event that this matter leads to legal proceedings later on, you will need to rely on this documented trail.
- In situations involving contract labour, it is imperative to determine whether contractors utilize their own codes for social security contributions or whether you, as the principal employer, are responsible.
- In certain cases, a thorough understanding of the statute is required to identify the appropriate exception, explaining how you are not in violation.
- The presentation of information in a clear manner is of utmost importance. Create appropriate tables where necessary, and consider adding additional details through an annexure or a “schedule.”
- When a violation occurs, a decision must be made on how to admit it, the best way to explain your stance, and providing supporting information. Additionally, assert that you are now in compliance (with proof where possible) and request the closure of the matter.
5 – Offer to provide further assistance
If authorities are not satisfied with your response, they can conduct a raid. Always offer additional assistance, and express it as follows:
“We trust that our response has satisfactorily addressed your queries. Please inform us if there is any further way in which we can assist you.”
Here is a sample response to a notice which you can use.