The Government of Puducherry, through notification dated 14.08.2025, has notified the Third Party Certification Scheme, 2025 under the Puducherry Shops and Establishments Act, 1964. This scheme aims to enhance ease of doing business, reduce regulatory burden, and ensure streamlined labour law compliance for shops and establishments.
📌 Objective of the Scheme
The scheme is designed to:
- Facilitate self-regulation and simplify compliance with labour laws.
- Enable third-party audits in lieu of traditional government inspections.
- Cover a wide range of applicable labour legislations, such as:
- Minimum Wages Act, 1948
- Payment of Wages Act, 1936
- Contract Labour (R&A) Act, 1970
- Maternity Benefit Act, 1961
- Equal Remuneration Act, 1976
- Bonus, Gratuity, and Festival Holiday Acts, among others.
🧾 Key Features of the Scheme
✅ Scope & Eligibility
- Applies to all employers registered under the Puducherry Shops and Establishments Act, 1964.
🧑💼 Third-Party Compliance Auditors
- Must be independent and free from conflicts of interest.
- Cannot audit establishments where they have direct or indirect involvement (employment, ownership, or relations).
- Must maintain an audit logbook with audit details and submit reports to the Head of the Establishment.
🗓 Timeline
- Audit to be conducted in the first week of April every year.
- Audit Report to be submitted immediately after.
- Action Taken Report (ATR) to be filed within one week of receiving the audit.
- Certificate in Form-I to be uploaded to the official labour portal by 30th April annually.
🛡️ Monitoring & Enforcement
- Labour Commissioner will oversee discrepancies and ensure corrective action.
- In case of discrepancies:
- A compliance notice will be issued.
- No prosecution if violations are rectified based on the auditor’s findings.
- Surprise inspections allowed only with approval from the Secretary (Labour), and only for explicit violations.
⚖️ Safeguards & Confidentiality
- Auditors are legally bound to maintain confidentiality.
- Unauthorized disclosures or unethical practices may lead to civil/criminal proceedings and debarment from future audits.
🔍 Clarifications
Any doubt regarding the interpretation or implementation of the scheme will be resolved by the Secretary (Labour), Government of Puducherry, and their decision will be final and binding.
📣 Conclusion
The Third-Party Certification Scheme, 2025 represents a progressive move by Puducherry to:
- Promote industry self-compliance
- Reduce bureaucratic overhead
- Strengthen labour law adherence through transparent, accountable, and time-bound processes
This scheme marks another important step toward business facilitation while maintaining focus on workers’ rights and welfare.