The Constitution of India recognizes the ‘right to livelihood’ as an integral part of the fundamental right to life. Labour Laws in India have been designed from a worker emancipation perspective – including those relating to factories, mines, plantations, shops, commercial establishments as well as those relating to the payment of wages, regulation of trade unions, provision of social security, industrial safety and hygiene, etc. Therefore, organizations in India are under an obligation to perform Labour Law Compliances under various Acts.
The Labour Laws Compliance, generally applicable to organizations, are:
- Shops and Commercial Establishments Act (S&E)
- The Employees Provident Funds and Miscellaneous Provision Act - 1952 (EPF)
- The Employees State Insurance Corporation Act - 1948 (ESIC)
- The Professional Tax Act (PT) 1975
- The Labour Welfare Fund Act (LWF) 1965
- The Contract Labour (Regulation & Abolition) Act - 1970 (CLRA)
- The Child Labour (Prohibition & Regulation Act), 1986
- The Minimum Wages Act-1948
- The Payment of Wages Act-1936
- The Payment of Bonus Act-1965
- The Maternity Benefit Act-1961
- The Payment of Gratuity Act-1972
- The Equal Remuneration Act-1976
- The Industrial Establishment (N&FH) ACT 1963
- The Employment Exchange (Compulsory Notification of Vacancies) ACT-1959
- Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) ACT, 2013
- The Employees Compensation ACT-1923
- The Industrial Employment (Standing Orders) ACT 1946 - Model Standing Order Only
- The Industrial Disputes ACT 1947
- The Apprentice ACT, 1961
- The Interstate Migrant Workmen (Regulation of Employment and Conditions of Services) ACT, 1979
- The Factories ACT, 1948
- The Trade Unions Act, 1926
Given the changing economic requirements in recent times, the Indian Government has been increasingly conscious of the needs of the business as well. Accordingly, it has been slowly and steadily working towards labour law reform in order to improve the ease of doing business.
Labour Law Compliance rules
There are various Labour Law acts stated in labour Law Compliance rules. Some major acts are:
- Building and Other Construction Workers (Regulation of Employment and Conditions Services) Act, 1996
- Contract Labour (Regulation and Abolition) Act, 1970, Equal Remuneration Act,1976
- Minimum Wages Act,1948 and Mines Act, 1952, Industrial Employment (Standing Order) Act 1946, etc.
How ASC help in Employment and Labour Law Compliance?
- Evaluation of the labour laws applicable to any organization
- Obtaining the requisite registrations, approvals, authorizations, licenses from the department.
- Assistance in calculating the periodic contributions under the respective laws and remittance of statutory payments.
- Finalization and filing of the returns of various labour law compliances.
- Review of Labour Law compliances done in the past.
- Amendment of application or renewal of registrations under the various labour laws regulations.
- Maintenance of statutory registers, records, notices, and returns.
- Liaison with the labour law Commissionerate and other authorities.
- Monitoring of compliance-related with contractors.
- Assistance during departmental inspections or assessments in the form of liaising and pre-audit services.
Frequently Asked Questions
What are the labour laws compliances that an organization shall adhere to?
Following are some of the common labour laws applicable to an organisation:
- The Employees State Insurance Act, 1948
- The Payment of Gratuity Act, 1972
- The Payment of Bonus Act, 1965
- The Industrial Disputes Act, 1947
- The Factories Act, 1948 etc.
In total, there are a total of 40+ central labour laws governing the various aspects of the labour environment in India.
What are the four new labour codes that will be implemented in India?
The government is set to introduce four new labour codes in India that will repeal and replace 29 labour laws in India. This includes:
- The Code on Wages, 2019
- Occupational Safety, Health, and Working Conditions Code, 2020
- Industrial Relations Code, 2020
- The Code on Social Security, 2020
When do the labour laws become applicable?
Each labour law has its own applicability. For instance, the Payment of Gratuity Act, 1972 shall become applicable to every establishment with 10 or more employees whereas the Payment of Bonus Act, 1965 shall become applicable to every establishment with 20 or more employees.
What is the due date for payment of the provident fund?
The employer shall pay the provident fund by the 15th of each month. In case of delayed payment, a penalty shall be levied.