INTRODUCTION On Audit under Labour Legislations :

Audit under labour laws is a new concept, which is necessitated, in direct consequence of its non-compliance in large scale. Even after over six decades of attainining independence, India is still plagued with victimisation, non compliance of labour legislations is still at large. An analysis of these practices reveals that many employers resort to short cut methods to avoid the compliance of labour legislations. There is no system in place for reporting noncompliance of labour legislations by an independent professional like Company Secretary. Workers in India report many cases relating to non-compliance of labour legislation by employers.

Social Justice is guaranteed by the Preamble of our Constitution. The Directive Principles of State Policy also provides that it shall be endeavour of the State to promote the welfare of the people by effectively securing and protecting a social order in which social, economic and political justice shall inform all the institutions of national life.

Directive Principles provide –

• that the State should direct its policies towards securing the right of citizens, men and women, to an adequate means of livelihood ;

• that the ownership and control of material resources of the community be so distributed as best to subserve the common good ;

• that the economic system should not result in the concentration of wealth and the means of production to the common detriment ;

• that there should be equal pay for equal work for both men and women ;

• that the State should endeavour to secure the health and strength of workers ;

• that State should ensure that the tender age of children is not abused and citizens are not forced by economic necessity to enter avocations unsuited to their age and strength ;

• that childhood and youth are protected from exploitation and from moral and material abandonment ;

• that State shall secure to all workers living wage, decent standard of living and free enjoyment of leisure.

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.