Labour Law Audit Kerala

An extensive range of legal concerns, including employment, compensation, working conditions, trade unions, and worker relations, are governed by labour law. This is done to protect the rights of employees. On October 13, 2020, the labour law audit near Kerala Commissionerate issued an order to establish a Central Inspection system that will be in charge of conducting compliance inspections of the Department of labour, factories, and boilers, State Pollution Control Board, and also a joint System including the department of labour, factories, and boilers including as part of EDB.

Labour Law Audit Kerala

Risk Assessment

According to the risk assessment, businesses must be classified as low risk, medium risk, or high risk based on the following factors:

    • Number of Employees.

    • Type of Business Activity.

    • Number of Contract Employees.

    • Status of Compliance Based on Combined Annual Return/Online Inspection.

    • Complaints (from employees, trade unions, management, and citizens).

    • Compulsory Inspections.

All businesses without employees will be labeled low-risk and utterly exempt from the inspection system; only if they fail to register or renew will they be subject to examination. For three years, online inspection is not required for SEZ/EPZ establishments, low-risk industries, start-ups, etc.

Applicability

The following factors will determine if the labour law audit Kerala is applicable:

    • The type of business.

    • Number of employees in the company.

    • Employer types and their types of work.

    • Status of Registration: Permanent or Temporary. 

Labour Law Audit

An impartial labour auditor who works as a company secretary conducts the labour law audit near me. The auditor establishes the parameters of the labour law audit near Kerala, which requires him to list all relevant federal, state, and local laws and employer-specific regulations. The assessment of an employer’s labour compliances and the verification that the company follows them are considered components of labour law audit Kerala.

Procedure

The Government of Kerala inaugurated the Shram Suvidha portal on October 16, 2014, as part of the “Ease of Doing Business” initiative through a consolidated site to facilitate a simple, effective, and more straightforward process of acquiring registration under various labour regulations. Employers can access the Shram Suvidha Portal to complete registrations, fill out and submit annual returns, and get inspection reports from multiple relevant authorities. For each registered organization, a unique labour identification number (LIN), also known as the Shram Pehchan Sankhya, must be assigned to each registered application. All of the arrangements have been made here to foster a supportive business climate for companies through filling cost reduction, time savings, and a hassle-free, straightforward process. Under the Shram Suvidha portal for ease of making the business effort of the Government of Kerala to help the business and employees regarding labour law audit near me.

Checklist

The auditor creates a labour audit checklist before the investigation begins, and it should include the information below. Identify the laws that apply to the company or facility based on the industry and the number of employees.  

    • Registration in the Sharm Suvidha portal.

    • Employer’s reimbursement of employee contributions.

    • Sufficient security and safety precautions are available.

    • Compliance with the Act’s display standards.

    • Statutes like ESI and EPF require payment.

    • Upkeep all relevant records and registrations following applicable labour laws.

    • The submission of periodic returns.

Conclusion

The non-compliance with labour laws will only put the employer, occupier, director, or any other concerned person in a difficult position as it can result in prosecutions, imprisonment, fines, personal accountability, etc., which would be a time-consuming process along with accusing the reputation among the workers as well as the Government. As a result, every employer should view compliance as a responsibility, ensure that the compliance audit checklist is followed, and seek advice from a specialist with relevant experience.