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The Law and Justice department of the Maharashtra Government introduced the Maharashtra State Tax on Professions, Trades, Callings, and Employment (Amendment) Bill, 2023, in the Maharashtra Legislative Assembly on 20th March 2023. The Maharashtra State Tax on Professions, Trades, Callings, and Employment (Amendment) Act, 2023, shall come into effect from 1st April 2023.

The amended act has majorly two modifications. They are:

For section 27-A:

• The said act substituted clauses related to any person with a benchmark disability as per section 2(r) of the rights of a person with disabilities act, 2016, and the parents and guardians of a child with a benchmark disability.
• The person with a benchmark disability must hold a certificate of disability issued by the competent certifying authority. This will help an individual or an employer to produce such certificates before the prescribed authority to claim an exemption under this clause in respect of an assessment year.

For Schedule 1:

• Entry 1 of Schedule 1 added the entry related to the Salary and wage earners. The Act exempts the professional tax payable by the men who draw the monthly Salary or wages up to rupees seven thousand five hundred and the women who draw the monthly Salary or wages up to rupees twenty-five thousand.
• However, the men who draw Salaries or wages more than rupees seven thousand five hundred but do not exceed rupees ten thousand are liable to pay 2500/- per month.
• Men whose Salary or wages exceed ten thousand and Women whose Salary or wages exceed rupees 2500/- are liable to pay 2500/- per annum in a manner i.e.
  • 200/- per month except for February
  • 300/- for February.

The bill seeks the above set objectives.

Every business in India must follow the maze of local regulations. Statutory Compliance for HR and Labour laws means when an organization or company claims its operations strictly to follow the letter of the law. Because of this, it is imperative that payrolls and social security administration follow the rules. Businesses or establishments must adhere to federal and state statutory compliance for HR and Labour laws when dealing with their staff. If the company or establishment does not follow the rules, it could face fines, penalties, and legal action.

STATUTORY COMPLIANCE FOR HR:

Statutory Compliance for HR and Labour laws is a set of rules every organization must follow. Every establishment or company in India has to treat its workers in a way that follows all of the central and state government labour laws. These laws were carefully written and implemented with the employee, the employer, and the organization’s well-being in mind.

HR NON-COMPLIANCE:

A violation of HR compliance can have severe financial and brand-related consequences. In some cases, the costs of non-compliance go far beyond lost revenue and damaged credibility. In the event of a company’s failure to comply with federal and state labor laws, legal enforcement can occur against the company regardless of the status or size of the company or establishments.

Strict forms are required to prevent any HR non-compliance. Regular, periodic internal audits frequently mitigate large-scale financial and reputational risks. 

In most cases, no legal liability will remain after implementing effective HR compliance practices.

Since HR is a multifaceted function, compliance with laws and regulations involves payroll and safety measures. While there is a federal labour law, many states also have laws that may vary from the national standard. To maintain the organization’s integrity, all policies must be adhered to.

IMPORTANCE OF HR COMPLIANCE:

• Compliance with HR regulations is crucial, as non-compliance can be illegal and negatively affect the company.
• Failure to comply with HR regulations can amount to a crime.
• Compliance with all applicable laws is an enormous challenge for businesses or establishments.
• HR mechanism in place is crucial for ensuring HR compliance.
• By maintaining the appropriate HR policies and procedures, businesses can lessen their risk exposure and protect themselves from costly fines and penalties that could otherwise disrupt operations, alienate customers, and damage their reputations.
• Specific rules and regulations are put in place to ensure a proper working mechanism.
• Problems like child labour, maternity leave, retirement benefits, and many more for the betterment of both employees and employers

STATUTORY COMPLIANCE FOR LABOUR LAW:

Government rules for statutory compliance for Labour laws are:

• Industrial Relations: The Industrial Disputes, 1947 protects the unions and individual workers in any sector nationwide. Disputes between employees and their employers or between employees can be resolved using this act’s provisions.
• Social Security: The Employees Compensation (Amendment) Act, 1923, mandates an employer to comply with this law and provide payment information to a new hire before employment begins.
• Women’s Benefits: The equal Remuneration Act 1976 guarantees that all employees, regardless of gender, are paid the same amount of money for the same amount of work, irrespective of the gender of the employer. Generally, it is unacceptable for women to be paid less than men for equal work. The employer may face fines for any violations of this Act.

Many more statutory compliances deal with the observation of labour laws

CONCLUSION:

Statutory Compliance for HR and Labour laws is essential for employees, employers, establishments, and companies to comply. HR and Labour Las must take legal responsibility for enforcing adherence to these regulations. The Indian government performs periodic statutory audits to check for and confirm such conformity. Companies and establishments should make statutory compliance for HR and Labour laws a matter of course if they want to keep operating and stay out of legal trouble.

As a business owner, compliance with labour laws is of utmost importance. Failing to comply with labour laws can lead to legal troubles, hefty fines, and a damaged reputation. The Labour Law Reporter Compliance Calendar is a tool that can help businesses stay compliant with labour laws in India. This article aims to provide a comprehensive guide to the Labour Law Reporter Compliance Calendar.

What is the Labour Law Reporter Compliance Calendar?

The Labour Law Reporter Compliance Calendar is a tool created by the Labour Law Reporter, a leading provider of labour law-related news and information in India. It is a comprehensive calendar that lists all the compliance requirements under various labour laws applicable in India. The calendar covers the Factories Act, Minimum Wages Act, Payment of Wages Act, Employees’ Provident Fund and Miscellaneous Provisions Act, and more.

Why is the Compliance Calendar Important?

The Labour Law Reporter Compliance Calendar is essential for businesses because it helps them stay compliant with the ever-changing labour laws. The calendar provides a comprehensive list of compliance requirements, including due dates for filing returns, submitting documents, and making payments. With the help of the compliance calendar, businesses can ensure that they are meeting all their compliance obligations promptly and efficiently.

The Labour Law Reporter Compliance Calendar has several key features that make it an essential business tool. These include:

• Comprehensive Coverage: The calendar covers all the compliance requirements under various labour laws applicable in India.
• Monthly Updates: The calendar is updated monthly to reflect any changes in the labour laws.
• User-friendly Interface: The calendar has a user-friendly interface that makes it easy to use and navigate.
• Email Reminders: The calendar sends email reminders to businesses to ensure they get all compliance deadlines.

How to Use the Compliance Calendar

Using the Labour Law Reporter Compliance Calendar is easy. Businesses can access the calendar by subscribing to the Labour Law Reporter website. Once subscribed, businesses can log in to their account and access the compliance calendar. The calendar is divided into various categories, such as due dates for filing returns, submitting documents, and making payments. Businesses can use the calendar to keep track of their compliance obligations and ensure they meet all their deadlines. Here are some steps to follow:

Step 1: Identify the relevant laws and regulations

The first step is to identify the labour laws and regulations for your business. This may include minimum wage laws, ESI, provident funds, professional tax, and labour welfare funds.

Step 2: Gather the necessary information

Once you have identified the relevant laws and regulations, gather all the necessary information on compliance deadlines, payment amounts, and other requirements.

Step 3: Create the compliance calendar

Using a calendar tool, create a compliance calendar that includes all the essential compliance deadlines and reminders to ensure that you don’t miss any critical deadlines.

Step 4: Update the calendar regularly

Labour laws and regulations can change frequently, so updating your compliance calendar regularly is essential to ensure that it remains accurate and up-to-date.

Step 5: Use the calendar effectively

Use your compliance calendar effectively by setting reminders, reviewing it regularly, and taking action well before each deadline.

Conclusion

The Labour Law Reporter Compliance Calendar is an essential tool for businesses that want to stay compliant with labour laws in India. The calendar provides a comprehensive list of compliance requirements, including due dates for filing returns, submitting documents, and making payments. By using the compliance calendar, businesses can avoid penalties, improve compliance, and save time and money on fines and legal fees. Therefore, businesses should prioritize using the compliance calendar and staying compliant with labour laws in India.

Cosmetics play a significant role in enhancing an individual’s appearance, and it has become a multibillion-dollar industry worldwide. The demand for beauty products is at an all-time high, and with it, the need for regulations and standards to ensure the safety of consumers has also increased. In this context, the concept of a “cosmetic license” has emerged, which aims to ensure that all cosmetic products are safe and effective. In this blog, we will explore the concept of cosmetic license in the Indian context, its regulatory requirements, and its importance.

What is a Cosmetic License?

A cosmetic license is a legal document issued by regulatory authorities that permits companies to manufacture, distribute, and sell cosmetic products. It is a mandatory requirement for all cosmetic companies to obtain a cosmetic license before launching any new product in the market. The license ensures that the product has undergone the necessary tests and complies with the regulatory standards set by the authorities. The cosmetic license is issued by the Central Drugs Standard Control Organization (CDSCO) under the provisions of the Drugs and Cosmetics Act, 1940 and Rules, 1945.

Regulatory Requirements for Cosmetic License

To obtain a cosmetic license in India, the manufacturer or importer must comply with the following regulatory requirements:

• Product Formulation: The cosmetic product must comply with the permissible ingredients specified by the Bureau of Indian Standards (BIS). The product should not contain any prohibited or restricted ingredients.
• Product Labeling: The label of the cosmetic product must comply with the labeling requirements specified by the BIS. The label should provide information about the product’s name, ingredients, manufacturing date, expiry date, directions for use, and cautionary statements.
• Product Testing: The manufacturer or importer must conduct safety and efficacy testing of the cosmetic product as per the guidelines specified by the BIS. The testing should be conducted in a Good Laboratory Practice (GLP) certified laboratory.
• Manufacturing Facility: The manufacturing facility of the cosmetic product must comply with the Good Manufacturing Practice (GMP) guidelines specified by the BIS. The facility should have adequate infrastructure, equipment, and trained personnel to ensure the quality and safety of the product.
• Import License: If the cosmetic product is imported into India, the importer must obtain an Import License from the CDSCO.

The Application Process for a Cosmetic License

The application process for a cosmetic license varies depending on the regulatory authority. However, it generally involves submitting information about the product, such as its ingredients, manufacturing process, and intended use. The regulatory authority then reviews the application and tests the product to ensure it meets the necessary standards.

Benefits of Obtaining a Cosmetic License

Obtaining a cosmetic license has several benefits for companies, such as:

• Legal Compliance: A cosmetic license ensures that companies comply with the regulatory standards set by the authorities. This helps them avoid legal penalties and fines for non-compliance.
• Consumer Safety: Cosmetic licenses ensure that products are safe for consumer use. This helps companies build trust with their consumers, increasing sales and profits.
• Product Quality: The regulatory tests conducted during the license application process help companies improve the quality of their products. This leads to higher customer satisfaction and loyalty.

Conclusion

The concept of a cosmetic license has become crucial in the beauty industry, given the increasing demand for cosmetic products. Obtaining a cosmetic license ensures that companies comply with regulatory standards essential for consumer safety and product quality. Companies that receive a cosmetic license can benefit from legal compliance, increased consumer trust, and higher product quality. Therefore, a cosmetic license is necessary for any cosmetic company looking to establish itself as a trusted brand.

Labour Law Statutory Compliance is a critical issue for the legal safety of both employees and the Company. Adherence to Labour Laws and Statutory Compliance provides a lot of protection, beginning with employees’ minimum wages and ending with the Company’s continued existence. Every nation has set rules and regulations that establishments or businesses must comply with. For example, the Indian Government has issued several acts and regulations regarding the payment of workers. These Labour Laws’ Statutory Compliances help businesses to make a significant impact in the market.

IMPORTANCE OF LABOUR LAW STATUTORY COMPLIANCE:

The Indian Government provides Employee benefits such as industrial relations, minimum wages, health, and safety and organization benefits such as provident funds, trade unions, tax, etc. The importance is:

• Every Company must abide by the Labour Laws and regulations enacted by the Government at state or national levels.
• Businesses must know the most recent amendments to deal with the Labor Laws’ Statutory Compliance.
• Companies risk severe penalties and fines for non-compliance with these regulations.
• These statutes may vary from state to state or country to country.
• The applicability of certain Labour Law benefits are:

For Employees:

• Guarantees a minimum pay for workers regardless of gender.
• Fair treatment of workers and improvements in industrial relations
• Ensures the safety of all employees.
• Funds social security with rewards and benefits.

For Employers:

• Safeguarding the Company’s future.
• Protection from the illegal increase in pay from trade unions and workers.
• Protects the credibility of the Company and to keeps, its patrons engage.

NEED FOR LABOUR LAWS STATUTORY COMPLIANCE:

Due to increased business complexity, it has become exceedingly difficult to keep up with every Company’s operational details. Businesses often hire statutory compliance experts to ensure they follow the latest regulations. Many companies also offer assistance with the labor laws’ statutory compliance management. These businesses typically have more incredible familiarity with regulatory frameworks and offer specialized services. They facilitate the entire process, from regular maintenance of required forms and registers to filing and reporting.

ADVANTAGES OF LABOUR LAW STATUTORY COMPLIANCE:

• Avoids fines and penalties because of timely payments.
• To treat the workers fairly.
• Ensure relatively pay, and the Company follows the law regarding minimum wages.
• Prevents the workers from long working hours and poor pay.
• Protects the Company from unreasonable employee demands to increase the salary or benefits.
• Avoid potential legal complications because the business is in full compliance.
• Reduces potential harm and raises compliance awareness.
• The possibility of going wrong diminishes when compliance measures are in place.

RISK OF NON-COMPLIANCE:

• Legal actions and the losses in the reputation and finances of a company.
• Significant effect on the loyalty of a customer
• Monetary risk and potential losses
• Conflicts and distrust among the workers

TYPES OF LABOUR LAWS STATUTORY COMPLIANCES IN INDIA:

• The minimum wages act of 1948
• The employees state insurance act, 1948
• TDS deduction
• Gratuity
• The shops and establishments act of 1953
• Statutory compliance for provident fund deductions, etc.

CONCLUSION:

Adherence to the law establishes dimensions within which a company must function. In a nutshell, companies must act lawfully when responding to employees’ complaints and questions. Companies must contact their employees directly to ensure compliance with local regulations. Labour Law Statutory Compliances maintain legal and ethical business practices. One of the most important objectives for any business regarding labor law statutory compliances is to conform to the ever-changing nature of the business world.

As an employer, you must comply with various labour laws to ensure a safe and fair workplace for your employees. However, keeping track of all the rules and regulations that apply to your business can take time and effort. This is where a labour law compliance audit checklist comes in handy.

A labour law compliance audit checklist is a comprehensive review of your company’s policies, procedures, and practices to ensure compliance with labour laws. It involves identifying any non-compliance issues and developing a plan to address them. Here’s a labour law compliance audit checklist:

Employment Contracts and Agreements

Your employment contracts and agreements should comply with the minimum requirements of applicable labour laws. The following should be there in your contracts:

• Job description and responsibilities.
• Working hours and overtime policies.
• Compensation and benefits.
• Termination and resignation policies.
• Notice period and severance pay

Payroll and Benefits

You must comply with minimum wage requirements, payroll taxes, and employee benefits under the law. Your audit should cover the following areas:

• Regular and overtime wages.
• Payroll taxes and deductions.
• Employee benefits such as health insurance and retirement plans.
• Record-keeping and reporting.

Health and Safety

Your workplace must comply with health and safety regulations to ensure the well-being of your employees. The audit should assess the following:

• Workplace hazards and risks.
• Safety policies and procedures.
• Emergency response plans.
• Training and education programs for employees.

Discrimination and Harassment

Your company should have policies in place to prevent discrimination and harassment in the workplace. The audit should assess the following:

• Equal employment opportunity policies.
• Anti-harassment policies.
• Complaint and investigation procedures.
• Diversity and inclusion training.

Record-Keeping and Documentation

Employers are required to keep accurate records and documentation related to employment. The audit should review the following:

• Employee personnel files.
• Payroll records.
• Attendance and leave records.
• Safety inspection reports.
• Compliance reports.

Importance of a Labour Law Compliance Audit Checklist

The labour law compliance audit checklist is essential because it helps organizations to:

• Identify gaps in compliance: The checklist helps identify areas where an organization is not complying with labour laws and regulations.
• Mitigate legal risks: A thorough audit helps an organization identify potential legal risks and take necessary steps to mitigate them.
• Improve employee relations: A labour law compliance audit checklist helps to identify areas where an organization can improve employee relations, such as by providing better working conditions or benefits.
• Ensure ethical practices: A comprehensive audit ensures that an organization follows ethical practices and promotes a culture of compliance.
• Maintain a good reputation: A labour law compliance audit checklist helps maintain the organization’s good standing by demonstrating a commitment to following labour laws and regulations.

Benefits of Using a Labour Law Compliance Audit Checklist:

• Ensures comprehensive compliance: A labour law compliance audit checklist covers all the relevant labour laws and regulations, guaranteeing complete compliance. It helps auditors identify any areas of non-compliance and take corrective action.
• Boosts employee morale: Compliance with labour laws is essential to ensure fair treatment of employees. Regular labour law compliance audits using a checklist demonstrate the company’s commitment to following labour laws, which can boost employee morale and trust.

Conclusion

A labour law compliance audit checklist is critical to ensure that your workplace follows all applicable laws and regulations. It helps identify any areas of non-compliance and develop a plan to address them. Following the checklist above ensures that your business is law-abiding and your employees are protected.

The Tamil Nadu Labour Welfare Board issued an order via a revised notification dated 25th March 2023 related to Marriage Assistance, Accidental Death Assistance, and Natural Death Assistance.

REVISED NOTIFICATION OF TAMIL NADU LABOUR WELFARE BOARD

The Tamil Nadu Labour Welfare Board issued an order via a revised notification dated 25th March 2023 related to Marriage Assistance, Accidental Death Assistance, and Natural Death Assistance.

Marriage Assistance:

The Tamil Nadu Labour Welfare Board, via the Marriage Allowance Scheme, published for Labour Welfare Fund order to increase the amount for marriage assistance from Rs. 10,000/- to Rs. 20,000/- to the workers or the son/daughter of the workers.

The scheme also provides Rs. 3,000/- in the case of males and Rs. 5000/- in the case of females as the marriage allowance to the workers or their children only if they have attained the legal age of marriage.

Section 20 and 17 of the Labour Welfare Fund Act, 1972, provides the mandatory Tamil Nadu Welfare Board by the Secretary. The workers are allowed only once throughout their tenure to bear the expenditure incurred from the Board Welfare Fund.

Accidental Death Assistance:

According to the 79th Board Meeting resolution, which was held on 25th May 2022, the Tamil Nadu Labour Welfare Board issued an order to increase the Accidental Death Assistance case of a worker who pays welfare fund to the Tamil Nadu Labour Welfare Board from Rs. 10,000/- to Rs. 20,000/-.

By order of the Governor, the revised notification shall come into effect from 1st April 2023.

Natural Death Assistance:

According to the 79th Board Meeting resolution, which was held on 25th May 2022, The Secretary of the Tamil Nadu Labour Welfare Board requested the Government to increase the natural death assistance in case of the death of a labourer who pays funds to the Tamil Nadu Labour Welfare Board, from Rs. 25,000/- to Rs. 50,000/.

The increased amount of assistance shall come into effect from 1st April 2023 by order of the Governor.

Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Act, 2023

The Karnataka Government on 14th March 2023 notified the Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Act, 2023, as it received the Governor’s assent on 13th March 2023.

It became important for the Karnataka Government to amend the Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976 (Karnataka Act 35 of 1976), for many reasons. Several amendments made for a purpose are as follows:

1. The Act has inserted more clauses, such as “agent” and “assessment,” for better interpretation.
2. The enrolled person pays tax according to Section 10(6) to reduce the interest rate where a person making a deduction defaults from 2% to 1.5%.
3. The penalty for non-payment of tax under section 12 of the 1976 act has been amended from 50% to a fixed amount of ten percent whether or not a reasonable cause exists.
4. A person is liable to pay tax if he falls under more than one entry in a schedule.
5. The basis for calculating tax liability by Serial No. 4 in this Schedule shall be counted by the more significant number of workers or employees at any time during the year
6. Where a lessee holds any asset or business under a lease, the lessee shall be deemed to be the person liable under the Act for this Schedule.
7. If a firm is obligated to pay and its partners pay their share, then the partners are exempt from liability under this Act.
8. Nothing in this amended explanation shall apply in the case of additional places of business exclusively used as godowns for storing goods, etc.
9. Each place of a person listed in any item of the Schedule shall be treated as a separate person for levy of the Profession tax specified in the Schedule.

The Tamil Nadu Labour Welfare Board has recently changed its policies regarding financial assistance for workers and their families. These changes have been communicated through a revised notification dated 25th March 2023.

Under the Marriage Allowance Scheme, the Board has increased the amount of marriage assistance from Rs. 10,000/- to Rs. 20,000/-. This financial assistance will be provided to workers or their children who have attained the legal age of marriage. Male workers or their children will receive Rs. 3,000/-, while female workers or their children will receive Rs. 5,000/-. As per the Labour Welfare Fund Act 1972, workers can only avail of this assistance once during their tenure.

The Board has also increased the amount of Accidental Death Assistance from Rs. 10,000/- to Rs. 20,000/- for workers who pay welfare funds to the Tamil Nadu Labour Welfare Board. This change was made in the 79th Board Meeting resolution held on 25th May 2022 and will come into effect from 1st April 2023.

Similarly, regarding the natural death of a worker who pays funds to the Tamil Nadu Labour Welfare Board, the Board has increased the assistance amount from Rs. 25,000/- to Rs. 50,000/-. This change was also made in the 79th Board Meeting resolution and will be effective from 1st April 2023.

It is important to note that these changes apply only to workers who contribute to the Labour Welfare Fund. The Board Secretary has issued the revised notification and approved it by the Governor.

These changes aim to provide better financial assistance and support to workers and their families in significant life events such as marriage, accidental death, or natural death.

The Karnataka Tax on Profession, Trades, Callings, and Employments (Amendment) Act, 2023, was recently notified by the Karnataka Government on March 14, 2023. The Act has been revised to improve its interpretation and implementation. The amendments to the 1976 Act include the addition of new clauses such as “agent” and “assessment” for better understanding.

One of the significant amendments is reducing the interest rate from 2% to 1.5% for a person making a deduction who defaults in payment. Another amendment is reducing the penalty for non-payment of tax under Section 12 of the 1976 act from 50% to a fixed amount of ten percent, regardless of whether or not a reasonable cause exists.

The Act also states that a person is liable to pay tax if they fall under more than one entry in the Schedule. The basis for calculating tax liability has been modified. The more significant number of workers or employees at any time during the year shall be counted under Serial No. 4 in the Schedule.

The lessee of any asset or business under a lease shall be deemed to be the person liable under the Act for this Schedule. If a firm is obligated to pay, and its partners pay their share, then the partners are exempt from liability under this Act.

The amended explanation shall not apply to additional places of business exclusively used as godowns for storing goods, etc. Each place of a person listed in any item of the Schedule shall be treated as a separate person for the levy of the Profession tax specified in the Schedule.

In summary, the Karnataka Tax on Profession, Trades, Callings, and Employments (Amendment) Act, 2023, is an amendment to the 1976 Act with new clauses added for better interpretation. The amendments aim to improve the implementation and reduce penalties for non-payment of taxes. The Act also clarifies the tax liability of lessees, firms’ partners, and multiple entries in the Schedule.