What is labour law compliance?

 

The Indian Labour Law regime has been developed over a period of time, with great emphasis to Human Rights, Social Welfare as well as ensuring adequate working conditions. The plethora of the laws are mandatory in order to ensure that the goals of the nation are achieved. Therefore, there must be compliance towards all laws and not just any particular law, in order to avoid legal issues like fines and lawsuits. Violating them or not complying with these regulations can hinder a company’s growth and reputation.

Let us see the essential labour laws that any employer must comply with.

1. The Industrial Disputes Act, 1947:
It is a crucial law that addresses conflicts in workplaces and defines procedures for handling employment situations, including staff reductions, layoffs, and terminations.

2. The Minimum Wages Act, 1948:
This law was enacted to ensure that a minimum fair amount is paid as a wage to every employee by their employer. The slab for minimum wages may vary from state to state and region to region as there are new and revised policies and updates in the rates from the government.

3. The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF):
One of the most well-known social security law is the Employees’ Provident Funds and Miscellaneous Provisions Act (EPF Act) of 1952. Most employees are familiar with it and appreciate its benefits. The EPF Act mandates employers to contribute to a retirement savings scheme for their employees. Employers deduct a portion of the employee’s salary and deposit it into the employee’s EPF account, and they also contribute a matching amount.

4. The Employees’ State Insurance Act, 1948 (ESI):
The ESI law was enacted to ensure that the employee and their family benefit from medical and financial support during instances of illness, maternity, disability, or death resulting from workplace injuries. Employers will contribute to the Employees’ State Insurance (ESI) scheme, which funds these benefits.

5. The Payment of Bonus Act, 1965:
According to this act, the employer must provide a bonus amount to the employees based on the company’s profit and evaluation of the employee’s performances. There is a preset formula for the bonus calculations by the government.

6. The Factories Act, 1948:
This law was enacted to monitor the working environment within factories and aimed to safeguard the health, safety, and well-being of the employees in the manufacturing operations. A wide range of factors such as working hours, safety hours, safety provisions, sanitary provisions, and hazardous occupations are a part of this.

7. The Maternity Benefit Act, 1961:
This law was enacted to benefit the married and working women during their maternity. It requires employers to grant paid maternity leave and benefits (including allowances and medical coverage) to support them throughout pregnancy and childbirth.

8. The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013:
Under this act, every employer must ensure a safe working environment for their female employees and ensure that an internal complaints committee is framed to address the harassment issues faced at the workplace.

Keep reading to know more about the consequences of non-compliance with labour laws!