A factory compliance audit is one of the most valuable exercises a manufacturing business can undertake — and one of the most consistently deferred. The logic behind deferral is always the same: the unit is running, production targets are being met, and no one has received a notice. Why create work that does not appear necessary?
The problem with this reasoning is that it mistakes the absence of a penalty notice for the presence of compliance. These are entirely different things. A factory can operate for years in violation of the Factories Act, the EPF Act, the ESI Act, and minimum wages rules — accumulating liability every month — and face no enforcement action until an inspector arrives or a worker files a complaint. By the time either event occurs, the accumulated liability far exceeds what early correction would have cost.
A factory compliance audit changes this sequence. Instead of waiting for an external authority to find the gaps, the business finds them internally — while time still exists to correct them without penalties, without production disruption, and without enforcement pressure.
This guide covers everything a manufacturing business needs to know about factory compliance audits in India. It explains what they involve, what areas they cover, how to conduct one effectively, and how to act on the findings. Whether you are approaching a compliance audit for the first time or reviewing your existing process, this guide provides the complete picture.
Want a professional factory compliance audit for your unit? Futurex provides comprehensive compliance audit services for factories across India — identifying gaps, preparing corrective action plans, and managing ongoing compliance. Free initial health check available. Call +91 9266339256.
What This Guide Covers
What a factory compliance audit is — and what it is not
Audit versus government inspection — key differences
When to conduct a factory compliance audit
The six areas every factory compliance audit must cover
Complete factory audit checklist India — section by section
The most common findings in industrial compliance audits
How to read and act on audit findings
Internal audit versus professional compliance audit services for factories
Frequently asked questions about factory legal audits in India
What Is a Factory Compliance Audit?
A factory compliance audit is a structured review of a manufacturing unit’s adherence to all applicable labour laws, safety regulations, and statutory filing requirements. The purpose is to identify gaps between what the law requires and what the factory currently does — and to document those gaps with corrective action recommendations.
Crucially, a factory compliance audit is not a government inspection. The factory itself, its compliance team, or an external compliance audit service provider conducts it — not a factory inspector or any government authority. An internal or external audit is voluntary and remediation-oriented. A government inspection, by contrast, is mandatory, enforcement-oriented, and can produce penalties, notices, and criminal prosecution.
Audit Versus Government Inspection: Key Differences
| Parameter | Factory Compliance Audit | Government Factory Inspection |
|---|---|---|
| Who conducts it | Internal team or external compliance firm | Factory Inspector / Chief Inspector of Factories |
| Timing | Chosen by the business — scheduled in advance | Announced or surprise — at the inspector’s discretion |
| Purpose | Identify gaps and fix them proactively | Enforce compliance and issue penalties for violations |
| Outcome of gaps found | Corrective action plan — no penalties | Show-cause notice, fine, factory sealing, prosecution |
| Frequency | Recommended quarterly or annually | Unpredictable — can happen at any time |
| Scope | Comprehensive — covers all applicable laws | Set by the inspector’s mandate on that visit |
| Documentation produced | Audit report with gap analysis and action plan | Inspection book entry, show-cause notice, penalty order |
In essence, a factory compliance audit is the exercise a business undertakes to ensure that a government inspection — when it inevitably arrives — finds nothing to cite. The value lies entirely in its preventive function: it surfaces what needs fixing while the business still controls the timeline and cost of doing so.
When Should a Factory Conduct a Compliance Audit?
No statute requires a factory to conduct a compliance audit — it is a voluntary exercise. However, several situations make an audit particularly important. Understanding these triggers helps businesses schedule audits at the moments they produce the most value.
Routine Annual or Quarterly Audit
The most structured approach schedules audits at regular intervals — annually at minimum, quarterly for larger or higher-risk operations. A routine audit reviews compliance status across all applicable laws, verifies that all filings are current, and identifies threshold-based obligations that have arisen since the last review. This approach treats compliance as an ongoing management function rather than a reactive response to external pressure.
Before a Government Inspection
When a factory receives advance notice of an inspection, or when a sector-wide enforcement drive is underway in a particular industrial belt, conducting an immediate audit allows the business to identify and correct gaps before the inspector arrives. Even two to three weeks of focused remediation can close the most critical gaps. Furthermore, a documented audit report showing awareness of obligations and corrective steps underway typically produces a more constructive inspection outcome.
When Significant Growth Occurs
The Factories Act automatically attaches new obligations when headcount crosses specific thresholds — 150, 250, 500, and 1,000 workers. When a factory grows through any of these thresholds, a targeted compliance audit should immediately assess which new obligations apply and what the factory needs to do to satisfy them. Growth without a compliance review is one of the most common sources of accumulated liability in Indian manufacturing.
After a Change of Management or Ownership
When a factory changes hands, a new director takes on the Occupier role, or a new Factory Manager joins, a comprehensive compliance audit establishes the baseline. Incoming management needs to know the actual compliance position — not just the position represented during the transaction. A compliance audit conducted at this point protects the incoming Occupier and Manager from inherited liability they had no knowledge of.
Before a Funding Round or Due Diligence Exercise
Investors, lenders, and potential acquirers routinely review labour law compliance as part of due diligence. A recent, clean compliance audit report significantly strengthens the business’s position. Undiscovered gaps that surface during due diligence — late PF filings, missing factory returns, minimum wage arrears — create delays and reduce valuations. Conducting an audit before due diligence begins gives the business time to correct issues before they become negotiating liabilities.
The Six Areas Every Factory Compliance Audit Must Cover
A comprehensive factory compliance audit in India covers six distinct areas, each governed by separate statutes with separate enforcement authorities. Together, these six areas constitute the full scope of a factory’s legal compliance obligations.
Area 1: Factory Registration, Licensing, and Statutory Filings
The audit begins with the foundational documents. The factory licence must be current — not simply present on the wall. The Occupier and Manager of record must match the actual current holders of those roles. Site approval must cover the current premises configuration.
Auditors check the licence expiry date, verify Form 21 filing for the previous calendar year, verify Form 22 filings for the two most recent half-year periods, and confirm that any change of Occupier or Manager reached the CIF within the statutory 30-day window.
Area 2: Working Hours, Overtime, and Leave Compliance
The Factories Act imposes specific limits on daily working hours (9 hours), weekly hours (48 hours), the spread-over (10.5 hours), and maximum overtime per quarter (50 hours under Section 64). Overtime must attract double the ordinary rate of Basic plus DA — not 1.5x, not a flat rate.
The audit reviews the muster roll for hours exceeding statutory limits, reconciles the overtime register against both the muster roll and the wage register, verifies the overtime rate calculation, and checks leave records for compliance with Section 79 — one day of earned leave for every 20 days worked, with mandatory encashment at Full and Final Settlement.
Area 3: Health, Safety, and Welfare Facilities
This area involves physical inspection of the factory premises, not just document review. The auditor walks the factory floor to assess machinery guarding (Section 21), pressure vessel examination records, fire safety equipment, emergency exits, drinking water facilities, toilet provision and gender separation, cleanliness, ventilation, and lighting.
Welfare facility obligations are assessed against actual headcount — counting direct employees and contract workers together. This determines whether the 30-woman-worker creche threshold, the 150-worker rest room threshold, the 250-worker canteen threshold, the 500-worker welfare officer threshold, and the 1,000-worker Safety Officer threshold have been crossed — and whether the corresponding facilities are in place.
Area 4: Statutory Registers and Records
The factory legal audit reviews every prescribed register against state-specific format requirements. Many factories fail here — not because records do not exist, but because the records are in the wrong format, incompletely maintained, or stored digitally in a format that state rules do not accept.
The audit checks the Register of Adult Workers (Form 12), Register of Young Persons (Form 14), Muster Roll, Wage Register (Form 19), Overtime Register, Leave Register (Form 15), Accident Register (Form 26), and Inspection Book. Each register receives a review for completeness, format correctness, and data consistency — particularly the consistency between the muster roll, overtime register, and wage register.
Area 5: Payroll and Statutory Contribution Compliance
This area covers PF and ESI compliance, minimum wages, TDS on salaries, and Professional Tax where applicable. The audit verifies that PF ECR filings are current, that the PF wage base uses Basic plus DA correctly, and that ESIC contributions apply the correct gross wages with accurate threshold management.
Minimum wages compliance receives particular attention. The audit checks whether current wages meet the applicable state-specific rates for each skill category, whether the revision calendar is actively tracked, and whether payroll was updated promptly after the most recent state revision. TDS compliance is reviewed for correct slab application, timely deposits, and quarterly Form 24Q returns.
Area 6: Contract Labour and Other Applicable Statutes
For factories that engage contract workers — which covers most manufacturing units — the audit reviews Contract Labour (R&A) Act compliance. This includes whether the principal employer holds a valid registration certificate, whether contractors hold valid licences, whether the register of contractors is maintained, and whether contract workers receive minimum wages, PF, ESI, and welfare facilities.
Additionally, the audit covers Payment of Bonus Act compliance, gratuity provisions and fund adequacy, Maternity Benefit Act compliance, POSH Act compliance including ICC constitution and annual report filing, and Shops and Establishments registration validity where applicable.
Complete Factory Audit Checklist India — Section by Section
The following factory inspection checklist covers all six areas of a factory compliance audit in India. It mirrors the standard checklist factory inspectors use during enforcement visits — meaning a factory that passes this audit with no findings is effectively inspection-ready.
Section A: Licensing and Statutory Filings
Factory licence — is it valid and current? What is the exact expiry date?
Occupier and Manager named on licence — do they match current actual holders?
Site approval — does it cover the current premises configuration?
Form 21 (Annual Return) — filed with CIF for the previous calendar year?
Form 22 (Half-Yearly Returns) — filed for both April–September and October–March periods?
Change of Occupier or Manager notifications — filed within 30 days of each change?
Accident reports — filed within the statutory 30-day window for all reportable incidents?
Inspection book — present on-site and accessible to inspectors?
Section B: Working Hours, Overtime, and Leave
Daily working hours — do they stay within 9 hours for adult workers?
Weekly working hours — do they stay within 48 hours?
Spread-over — does it stay within 10.5 hours including all breaks?
Rest intervals — does a 30-minute break follow every 5 hours of continuous work?
Weekly rest day — is one day fixed and displayed on the notice board?
Overtime — does it stay within 50 hours per quarter, or applicable state exemption?
Overtime rate — is it exactly double the ordinary rate of Basic plus DA?
Overtime register — does it exist in prescribed format and reconcile with the muster roll and wage register?
Annual leave — do workers who completed 240 working days receive 1 day per 20 days worked?
Leave register — does it show applications, approvals, balance, and carryforward correctly?
Leave encashment at FNF — does the settlement process include leave balance encashment?
Section C: Health, Safety, and Welfare Facilities
Machinery guards — are all rotating and moving parts securely fenced?
Safety Officer — if headcount exceeds 1,000, has a certified Safety Officer been appointed?
Safety Committee — if applicable to hazardous processes, does it exist and meet regularly?
Pressure vessels — has a competent person examined them with examination reports filed?
Fire safety — are extinguishers present, serviced, and correctly positioned?
Emergency exits — are they clearly marked, unobstructed, and functional?
Drinking water — is it accessible, marked, and at least 6 metres from latrines?
Latrines and urinals — are they separate for men and women? Do ratios meet 1:25 males and 1:15 females?
Cleanliness — do floors, walls, and ceilings meet adequate maintenance standards?
Lighting and ventilation — does every working area have adequate light and ventilation?
First-aid boxes — is there 1 box per 150 workers? Is a trained First Aider available for 500+ workers?
Creche — if 30 or more women workers are employed, does a compliant creche exist and operate?
Rest rooms and shelters — if headcount exceeds 150, do rest rooms exist?
Canteen — if headcount exceeds 250, is a compliant canteen in operation?
Welfare Officer — if headcount exceeds 500, has a qualified Welfare Officer been appointed?
Minimum wage display — are current minimum wage rates displayed prominently at the workplace?
Section D: Statutory Registers and Records
Register of Adult Workers (Form 12) — present, complete, and current?
Register of Young Persons (Form 14) — present if workers under 18 are employed?
Muster Roll — does it record daily attendance for every worker?
Wage Register (Form 19) — does it record wages, deductions, and net amounts per worker per payment period?
Overtime Register (Form 25 or equivalent) — maintained separately from the muster roll?
Leave Register (Form 15) — are all leave transactions recorded and balanced?
Accident Register (Form 26) — are all accidents and near-misses recorded?
Register of Exemptions — maintained if any statutory exemptions apply?
Inspection Book — available on-site and up to date with all inspector entries?
Data consistency — does data across the muster roll, overtime register, and wage register reconcile?
Format compliance — are all registers in the state-prescribed format, not a generic internal version?
Retention — does the factory retain records from previous years for the required period?
Section E: Payroll and Statutory Contributions
PF registration — is the establishment registered with EPFO?
ECR filings — are monthly ECR filings current with no gaps?
PF wage base — does PF calculate on actual Basic plus DA, not a reduced base?
UAN activation — do all employees have activated UANs with Aadhaar linked?
ESIC registration — is the establishment registered where headcount and wage thresholds are met?
ESIC challans — are monthly payments current with no gaps?
ESIC returns — were half-yearly returns filed by 11 April and 11 October?
ESIC wage ceiling — has the threshold been correctly applied, excluding employees above Rs 21,000 gross?
Minimum wages — do all workers receive wages at or above the applicable state minimum for their skill category?
Minimum wage revision — has payroll been updated after every state revision?
TDS on salaries — are correct slabs applied, are deposits made by the 7th, and are quarterly Form 24Q returns filed?
Form 16 — have Form 16 certificates been issued to all eligible employees by 15 June each year?
Professional Tax — is PT correctly applied in states where it remains applicable?
Salary structure — does the basic salary comply with the 50 percent of CTC requirement under the Code on Wages?
Section F: Contract Labour and Other Statutes
Contract Labour Act registration — does the principal employer hold a valid registration certificate if 20 or more contract workers are employed?
Contractor licences — do all contractors hold valid CLRA licences?
Register of contractors — is it maintained and current?
Contract worker wages — has the employer verified that contractors pay minimum wages and make PF and ESI contributions?
Principal employer liability records — does documentation demonstrate due diligence in monitoring contractor compliance?
Payment of Bonus Act — are eligible employees receiving the annual bonus at the correct rate?
Payment of Gratuity Act — is the gratuity fund or LIC policy adequate for workforce size and tenure?
Maternity Benefit Act — are female employees receiving 26 weeks of paid maternity leave and all related benefits?
POSH Act — has an Internal Complaints Committee been constituted? Has the annual report been filed?
Shops and Establishments registration — is the registration current where applicable?
Most Common Findings in Industrial Compliance Audits
Across manufacturing units of varying sizes and industries, certain findings appear consistently in factory compliance audits — regardless of sector, location, or apparent sophistication. Understanding these common findings helps businesses prioritise their pre-audit preparation and their post-audit corrective action.
Finding 1: Expired or Unrenewed Factory Licence
This is the most consistently found issue in factory compliance audits across India. Factory licences require annual renewal in most states, typically before 31 December. Many factories registered years ago and have not actively tracked the renewal cycle. As a result, they often operate on licences that expired one, two, or even three years earlier.
The fix is immediate — renew the licence. However, this finding also reflects a systemic gap in compliance calendar management that typically reveals other missed deadlines as well.
Finding 2: Overtime Register Missing or Not in Prescribed Format
Most factories record attendance and overtime somewhere — but not always in the separate, prescribed format that state factory rules require. An Excel sheet that captures hours is not the same as the prescribed overtime register. Furthermore, even where the register exists, the data often does not reconcile with the wage register — overtime is recorded but paid at an incorrect rate, or the hours in the register do not match the overtime payments in payroll.
Finding 3: Annual and Half-Yearly Returns Not Filed
Form 21 and Form 22 rank among the most frequently unfiled statutory documents in factory compliance audits. The confusion arises because these returns go to the factory department — a different authority from EPFO, ESIC, and the income tax department. Factories that are current on all payroll-side filings often have three or four years of unfiled factory returns. Because no reminder comes from the CIF, these gaps accumulate without anyone noticing.
Finding 4: Headcount Undercount Leading to Missed Welfare Obligations
When factories count only direct payroll employees and exclude contract workers, they systematically underestimate their headcount for compliance purposes. This leads to welfare facility obligations being missed — most commonly the canteen (250+ workers) and the creche (30+ women workers). The creche finding is particularly frequent because it requires counting only women workers, making it an independent threshold that many factories miss entirely.
Finding 5: Minimum Wage Arrears
State governments revise minimum wages once or twice a year in most states. Factories that do not actively monitor these revisions carry undeclared arrears from the date each revision became effective. Interest accrues from the date of the underpayment — not from the date of discovery. Consequently, a factory that missed three consecutive revisions over two years can carry a significant liability it had no awareness of.
Finding 6: PF Wage Base Miscalculation
Factories that structured salary with a low basic component and a high special allowance to reduce PF liability carry significant audit risk. The EPFO’s consistent position — reinforced by multiple court rulings — is that a uniformly paid, fixed special allowance forms part of wages and must enter the PF calculation base. Audits that review the relationship between basic salary and total CTC frequently identify this structural issue, which tends to produce large arrear demands when the EPFO raises a Section 7A inquiry.
Finding 7: Absent or Non-Compliant Safety Measures
Physical safety audits of the factory floor consistently find machinery with missing or inadequate guards, pressure vessels without current examination reports, and fire safety equipment outside its maintenance schedule. These findings carry the highest personal liability risk. Violations that contribute to accidents result in substantially elevated penalties and potential prosecution under both the Factories Act and the Employees’ Compensation Act.
How to Read and Act on Factory Compliance Audit Findings
An audit report has value only if its findings lead to documented, verified corrective action. The structure of the corrective action process matters as much as the audit itself, because it determines whether gaps get closed or simply get documented.
Categorise Findings by Risk and Urgency
Not all audit findings carry the same urgency. As a practical matter, findings fall into three categories.
Critical findings carry direct criminal exposure or immediate enforcement risk — an expired factory licence, unfenced machinery, missing safety guards, or unregistered status. These require corrective action within days, not weeks.
Significant findings include issues that produce penalty liability without immediate criminal exposure — missing returns, incorrect overtime rates, minimum wage arrears, or register format issues. These require corrective action within two to four weeks.
Administrative findings cover gaps in record completeness, display requirements, and documentation. These carry no immediate liability but need systematic correction. A structured three-month remediation plan handles them well.
Assign Ownership and Set Deadlines
Every finding must have a named owner and a specific completion deadline. A finding without an owner and deadline is documentation, not remediation. The audit report should translate directly into a corrective action plan with columns for: finding, risk category, corrective action required, responsible person, and completion date. Management then reviews this plan weekly until all critical and significant findings are closed.
Verify Closure — Do Not Assume It
A corrective action is closed only when the underlying gap no longer exists and the correction is documented. A licence renewal is closed when the renewed licence is in hand — not when the application is submitted. An overtime register is closed when it exists in the correct format, is current to the most recent pay period, and the data reconciles with the muster roll and wage register. Verify closure through document review, not through the responsible person’s verbal confirmation.
Internal Audit Versus Professional Compliance Audit Services for Factories
Factories can conduct compliance audits internally — using their own HR and compliance team — or they can engage external compliance audit services for factories. Each approach has advantages and limitations. The right choice depends on the size of the operation, the depth of internal compliance expertise, and the specific purpose of the audit.
When Internal Audits Work Well
Internal audits work well as a regular ongoing review mechanism — a quarterly walkthrough of registers, a monthly check of upcoming deadlines, a weekly review of attendance data consistency. Routine checks conducted by a knowledgeable internal team catch most administrative gaps before they become significant. However, internal audits have a structural limitation: the team conducting them is the same team managing compliance day-to-day. They tend to see what they expect to see, and they may be unaware of the very gaps they are creating — precisely because they have never encountered the full scope of what the law requires.
When Professional Compliance Audit Services Add More Value
An external factory legal audit provides an independent assessment conducted by professionals whose knowledge of the Factories Act, state factory rules, EPF Act, ESI Act, and related legislation is current, detailed, and tested across multiple clients. External auditors bring three capabilities that internal teams typically cannot match: awareness of state-specific nuances that single-state internal teams miss; an inspector’s-eye perspective on how premises and records will appear to an enforcement officer; and independence from the internal team’s blind spots and institutional assumptions.
Professional compliance audit services for factories are particularly valuable before a government inspection, before a funding round or acquisition due diligence, after a significant change in management or ownership, and when a factory has grown rapidly without a systematic compliance review to match that growth.
What to Expect from a Professional Factory Compliance Audit
What a Professional Industrial Compliance Audit Delivers
A professional factory legal audit covers all six areas described in this guide. The auditor produces a written report with a finding-by-finding gap analysis, a risk categorisation for each finding, and a specific corrective action recommendation. Additionally, the report includes a twelve-month compliance calendar showing all upcoming deadlines. The audit typically requires one to two days of on-site work — reviewing documents, walking the premises, and meeting with HR and operations teams. The corrective action plan that emerges from the report then becomes the roadmap for reaching a fully inspection-ready position.
How a Factory Compliance Audit Differs from a Government Inspection
The mechanics of a factory compliance audit and a government inspection overlap significantly — both involve reviewing the same documents, walking the same premises, and checking compliance with the same statutes. The difference lies entirely in purpose and consequence.
Purpose: Remediation Versus Enforcement
A compliance audit is remediation-oriented. The auditor’s objective is to find every gap so the business can fix it. Every finding is a problem the business can address before it becomes a liability. The factory controls the timeline, the sequence of corrective action, and the pace of implementation.
A government inspection is enforcement-oriented. The inspector’s objective is to assess compliance against the statutory standard and apply the consequences the law prescribes for any gaps found. The factory controls none of these outcomes. Findings produce notices, penalties, and in serious cases, sealing of the unit and criminal prosecution of the Occupier and Manager.
The Practical Relationship Between the Two
A factory that maintains a consistent compliance audit practice, acts on findings promptly, and keeps its compliance posture inspection-ready has very little to fear from government inspections. A factory that does not will eventually discover the cost of that approach at the most inconvenient moment possible — when an inspector is already on-site.
Frequently Asked Questions About Factory Compliance Audits
How often should a factory conduct a compliance audit?
At minimum, annually — ideally in the fourth quarter, before the year-end compliance calendar becomes active. Factories with more than 200 workers, those in high-enforcement industrial zones, and those with complex contract labour arrangements benefit from quarterly reviews of the highest-risk areas. A comprehensive industrial compliance audit once a year, combined with quarterly spot checks of critical indicators, provides adequate assurance for most manufacturing operations.
Can a factory compliance audit help with due diligence for funding or acquisition?
Yes — a recent, comprehensive audit report significantly supports a due diligence process. Investors and acquirers routinely request evidence of compliance with labour laws, PF and ESI obligations, minimum wages, and factory registrations. A clean audit report with a documented corrective action history demonstrates that the business manages compliance seriously and systematically.
Conversely, compliance gaps that surface during due diligence — accumulated PF arrears, unfiled returns, or EPFO notices — create risk flags that delay transactions and reduce valuations. Conducting an audit before the due diligence process begins puts the business in control of the conversation.
What documents should be ready before a compliance audit?
Before a compliance audit, gather the following: current factory licence, Form 21 and Form 22 filing acknowledgements for the past three years, PF ECR filing and payment acknowledgements for the past twelve months, ESIC challan and return acknowledgements for the past twelve months, and the current state minimum wage notification.
Also prepare all statutory registers, the current payroll run output, the contractor list with CLRA licence copies, recent payslips for a sample of workers across all skill categories, and any inspection notices or government correspondence received in the past three years. Having these ready at the start allows the audit to move efficiently and ensures the report reflects the actual compliance position.
Is a factory compliance audit legally required?
A factory compliance audit is not a statutory requirement — no law requires businesses to audit themselves. However, the compliance obligations that the audit verifies are all statutory requirements. The audit is the mechanism through which a business confirms that those requirements are actually being met. From a risk management perspective, conducting regular factory compliance audits is one of the most cost-effective exercises available to Indian manufacturers.
What is the difference between a factory compliance audit and a labour audit?
A labour audit typically focuses on payroll compliance — PF, ESI, minimum wages, TDS, gratuity, and bonus. A factory compliance audit covers all of these payroll obligations and extends further to include the physical and operational requirements of the Factories Act — licensing, safety, welfare facilities, registers, and factory returns. A complete factory compliance audit effectively subsumes a labour audit as one of its six components. For manufacturing businesses, a factory compliance audit is therefore always more comprehensive and more appropriate than a standalone labour audit.
Related Reading:
Factory Compliance in India: Complete Legal Guide |
Common Factory Compliance Mistakes |
Payroll Compliance India: Complete Guide |
PF and ESI Compliance for Indian Employers
Schedule a Factory Compliance Audit for Your Unit
Futurex Management Solutions provides comprehensive factory compliance audit services for manufacturing businesses across India. Our audit covers all six areas described in this guide — licensing, working hours and registers, safety and welfare, statutory filings, payroll contributions, and contract labour.
We produce a written audit report with a risk-categorised finding list and a specific corrective action plan. We then support the implementation of that plan through our ongoing factory compliance management service.
What the Futurex Factory Compliance Audit Covers
Factory licence status — validity, Occupier and Manager details, site approval
All statutory returns — Form 21, Form 22, change notifications, accident reports
Working hours, overtime, and leave — rate verification, register review, reconciliation
Physical premises — machinery guards, safety equipment, welfare facilities
All statutory registers — format compliance, completeness, data consistency
Payroll and contributions — PF, ESIC, minimum wages, TDS, Professional Tax
Contract labour compliance — CLRA registration, contractor monitoring
Other applicable statutes — Bonus Act, Gratuity Act, Maternity Benefit, POSH Act
Written audit report — findings categorised by risk, specific corrective actions
Twelve-month compliance calendar — all upcoming deadlines in one document