Labour laws ensure employers and employees follow specific standards and regulations to maintain a healthy work environment. Compliance with statutory laws is critical for organizations to prevent legal repercussions, safeguard employee rights, and maintain a positive reputation. In India, various labor laws regulate the employer-employee relationship, and organizations must adhere to these laws. This blog will discuss the labour laws statutory compliance checklist for organizations in India. Here is a comprehensive labour laws statutory compliance checklist that businesses in India must adhere to:

Minimum Wages Act

The Minimum Wages Act ensures that employees receive fair compensation for their work. The act mandates that organizations pay their employees at least the minimum wage rate as notified by the respective state government. Organizations should ensure that they comply with the minimum wage rates and maintain records of the same.

Employee Provident Fund Act

The Employee Provident Fund Act provides social security benefits to employees by contributing to their retirement savings. Employers must deduct a certain percentage of the employee’s salary and contribute a matching amount to their provident fund account. Organizations should ensure that they are registered under the EPF Act and comply with the deductions, contributions, and filings provisions.

Employee State Insurance Act

The Employee State Insurance Act provides medical and other benefits to employees and their dependents in case of sickness, injury, or death. Employers must contribute towards the employee’s insurance scheme and maintain records. Organizations should ensure that they are registered under the ESIC Act and comply with the contributions, filings, and benefits provisions.

Payment of Bonus Act

The Payment of Bonus Act mandates that organizations pay a bonus to eligible employees based on their performance and profits earned. Employers should ensure that they calculate and pay the bonus per the act’s provisions and maintain records of the same.

Contract Labour (Regulation and Abolition) Act

The Contract Labour (Regulation and Abolition) Act regulates contract laborers’ working conditions and welfare. Organizations that employ contract laborers should ensure that they comply with the provisions related to registration, licensing, and welfare measures such as minimum wages, provident funds, and ESIC benefits.

The Payment of Wages Act

This act stipulates the mode, time, and form of payment of wages to the employees. As per the act, wages must be paid in cash or through bank transfer on or before the seventh day of the succeeding month.

The Factories Act

The act lays down the rules for factory workers’ safety, health, and welfare. It covers working hours, overtime, holidays, leave, and medical facilities.

The Industrial Employment (Standing Orders) Act

The act mandates every employer to define the terms and conditions of employment in writing and submit it to the concerned authority for certification.

The Maternity Benefit Act

The act mandates employers to provide paid maternity leave to their female employees. The duration of the leave is 26 weeks.

The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act

The act mandates every employer to set up an internal complaints committee to deal with cases of sexual harassment in the workplace.

Conclusion

Compliance with statutory labor laws is critical for organizations to maintain a positive reputation and avoid legal repercussions. The labour laws statutory compliance checklist includes various acts that regulate employee-employer relationships, such as the Minimum Wages Act, Employee Provident Fund Act, Employee State Insurance Act, Payment of Bonus Act, and Contract Labour (Regulation and Abolition) Act. The checklist mentioned above is exhaustive, and businesses must consult legal experts to ensure they comply with all the applicable labour laws. Organizations should comply with these laws and maintain records to avoid legal issues.

Labour Law Statutory Compliance