LABOUR LAWS COMPLIANCE SERVICES
Ensuring Seamless Legal Compliance for Your Business
LABOUR LAW COMPLIANCE CONSULTANTS & ADVISOR:
The dynamic landscape of Labour laws in India is becoming increasingly stringent, resulting in significant penalties and legal hurdles. Traditional methods of handling labour law compliances and relying on regular consultants are no longer sufficient. Organizations require reliable compliance partners to effectively manage their labour law compliances.
Our experienced Labour Compliances team is led by a highly trained professional with extensive corporate experience, having worked with IT majors in managing PAN India compliances and representing the Central/State departments at various levels personally and through industry organizations.
Sankhla Corporate offers end-to-end labour law compliance management services, focusing on the implementation of best practices and processes under all relevant central and state-specific labour laws. Our services include, but are not limited to, payroll compliances, provident fund compliances, statutory HR compliances, factory compliances, vendor compliances, and more.
Our expert team continuously monitors labour law updates and changes, providing advice to customers accordingly. We maintain positive relationships with state and labour departments, enabling us to address and resolve tasks such as managing documentation, registrations/approvals, inspections, and other authority queries related to the client more efficiently. All our services are managed on an internal compliance platform, offering real-time updates, intelligent dashboards, and approval procedures to our clients.
Are You Looking for a Labour Law Advisor?
If there is something a business can’t do without, then that’s its people. To ensure that the people are all happy and work goes on without any interruptions, the rights of individuals must be safeguarded at the workplace. This is governed by labour laws in the country of employment and how well they are implemented in your business. Labour law compliance needn’t be difficult to manage.
We specialize in providing expert advice on Labour Law Compliance to ensure that your business adheres to all the necessary rules and regulations. With the ever-changing landscape of statutory requirements, it is crucial to have a consultant who can navigate through the complexities and help you avoid any legal pitfalls.
Whether you are a start-up, an MNC, or a well-established company, our consultancy services can help you manage your compliance effectively and protect your business from any potential risks
Sankhla consultants provide comprehensive assistance with Employment and Labour Law Compliances,
Including:
What makes Sankhla Corporate Services P. Ltd the ideal choice for your labour law advisory needs?
Our team of Labour Law consultants is dedicated to educating our clients on the intricacies of Labour Law regulations, ensuring they understand their obligations and responsibilities for compliance, and protecting them from potential costly litigation. Through a comprehensive audit, we offer tailored solutions to address your specific business needs, staying up-to-date with the latest amendments to Indian labour laws to provide the best advice possible.
Labour laws are constantly changing and vary by region. Our firm’s thorough understanding of local labour laws and strong relationships with government agencies enable us to navigate compliance challenges seamlessly. Sankhla Corporate is your trusted labour law consultant in Gurugram and other cities in India, ensuring full compliance with all regulations.
We prioritize the safety and security of our clients, utilizing our expertise, experience, and in-depth knowledge of regulatory compliance to mitigate risks and prevent losses. Drawing on our extensive experience across different industries and our expertise in employment-related services, we help businesses operate smoothly. By staying abreast of evolving labour laws and aligning businesses with legal requirements, we support our clients in achieving their goals and sustaining growth.
The Labour Laws Compliance, which are typically relevant to businesses, include:
The Prohibition & Regulation Act
The Regulation & Abolition Act
Other Labour laws Act are :
- LWF Act- The Labour Welfare Fund Act of 1965
- The Contract Labour (Regulation & Abolition) Act – 1970 (CLRA)
- The Child Labour (Prohibition & Regulation Act), 1986
- The Apprentice Act, 1961
- The Trade Unions Act, 1926
- The Employees Compensation Act of 1923
- The Industrial Disputes Act of 1947
- The Apprentice Act of 1961
- 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 Employment Exchange Act of 1959 or Compulsory Notification of Vacancies Act
- The Industrial Employment (Standing Orders) Act of 1946 – Model Standing Order Only
- The Sexual Harassment of Women at Workplace Act of 2013 or (Prevention, Prohibition & Redressal Act)
- The Interstate Migrant Workmen (Regulation of Employment and Conditions of Services) Act of 1979.
Four labour codes are below:
The Indian government is preparing to implement four new labour codes that will replace 29 existing labour laws in the country.
The Code on Wages, 2019
The Code on Wages, 2019 is a labour legislation in India that governs the payment of wages and bonuses across various industries.
The code replaces four older laws:
- The Old Payment of Wages Act, 1936
- The Old Minimum Wages Act, 1948
- The Old Payment of Bonus Act, 1965
- The Old Equal Remuneration Act, 1976
– Applies to all employees in industries, trade, business or manufacture
– Covers wages, salary, allowance and other monetary components but does not include bonuses or travelling allowance
– Empowers the central government to fix a floor wage and minimum wages based on geographical location
– Prohibits gender discrimination in wages and recruitment
– Specifies penalties for offences committed by employers, including imprisonment for up to three months and a fine of up to one lakh rupees
Industrial Relations Code, 2020
The Industrial Relations Code, 2020 in India is a labour reform that governs the resolution of industrial disputes, working conditions, and wages. The code contains the following provisions:
1 Exemptions: The government has the authority to exempt any new industrial establishment from the Code’s provisions if it is deemed to be in the public interest.
2 Standing Orders: Industrial establishments with 300 or more employees are required to create standing orders regarding worker classification, communication of work hours, and holidays.
3 Closure, lay-off, and retrenchment: Industrial establishments with 300 or more employees must obtain government approval before closing, laying off, or retrenching workers.
4 Negotiating Union and Council: The trade union with at least 51% of workers as members will be recognized as the primary negotiating union.
5 Disputes related to individual worker termination: Any dispute concerning the termination of an individual worker’s services is classified as an industrial dispute.
The Code on Social Security, 2020
The Social Security Code of 2020, passed by the Indian Parliament, is designed to revise and consolidate the current labour laws concerning social security. Its primary goal is to ensure that both organized and unorganized sector employees and workers receive social security benefits.
The Code encompasses various important statutes, including:
– Un-organised Workers’ Social Security Act, 2008
– Employees’ Compensation Act, 1923
– Employees’ State Insurance Act, 1948
– EPF Employee’s Provident Funds and Miscellaneous Provisions Act, 1952
– Maternity Benefit Act, 1961
– Payment of Gratuity Act, 1972
– Cine Workers Welfare Fund Act, 1981
– Building & Construction Workers Welfare Act- 1996
– Unorganised Workers’ Social Security Act, 2008.
Occupational Health & Safety Code, 2020
The OSH Code, 2020 in India is a comprehensive law that revises and combines previous labour laws concerning occupational safety, health, and working conditions. It is applicable to various sectors and workers, encompassing factories, mines, plantations, motor transport, as well as contract and migrant workers. Key components of the OSH Code comprise:
- Mandatory registration and licenses for establishments
- Clear definitions of essential terms like contract labour and employee
- Employer responsibilities, such as ensuring a secure work environment and conducting health examinations
- Obligations of designers, manufacturers, and suppliers to guarantee the safety of products and substances
- Reporting requirements for accidents and illnesses
- Employee rights and responsibilities, including the right to report hazardous conditions
- Formation of national and state-level advisory boards and safety committees.
Recent Changes and Updates of Labour Laws
Labour Codes Consolidation 2020
The introduction of the Four Labour Codes in 2020 marks a transformative reform in India’s labour laws landscape, aimed at simplifying and rationalizing existing regulations to enhance ease of compliance and foster better industrial relations.
The Code on Wages consolidates and rationalizes provisions related to wages, ensuring minimum wage standards, timely payment of wages, and transparency in wage fixation across all sectors.
The Code on Social Security integrates various social security benefits such as provident fund, pension, and insurance for workers, ensuring comprehensive coverage and enhanced welfare measures.
Focused on promoting a safe and healthy working environment, this Code establishes uniform standards for occupational safety, health, and welfare of workers across industries.
The Code on Industrial Relations consolidates laws related to trade unions, industrial disputes, and collective bargaining, aiming to promote harmonious industrial relations and facilitate effective dispute resolution.
Objectives and Benefits of Labour laws compliance
Simplification: Streamlines multiple laws into comprehensive codes to reduce complexity and improve ease of compliance.
Uniformity: Ensures uniformity in provisions across sectors, promoting consistency and fairness in labour regulations.
Enhanced Protection: Strengthens protection for workers’ rights, including provisions for better working conditions and social security benefits.
Digitalization of Labour Compliance
The digitalization of labour compliance represents a transformative shift in how businesses manage and adhere to regulatory requirements, leveraging technology to streamline processes and enhance efficiency. Here’s a concise overview:
Benefits of Digitalization
- Automation: Streamlines compliance processes, reducing manual efforts and human errors.
- Real-time Monitoring: Enables real-time tracking of compliance status and alerts for timely actions.
- Data Integrity: Ensures accuracy and security of compliance-related data through digital platforms.
- Accessibility: Facilitates easy access to regulatory updates, guidelines, and filing systems.
- Cost Efficiency: Reduces administrative costs associated with compliance management.
Digital Tools and Platforms
- Compliance Management Software: Centralizes compliance tasks, document management, and reporting.
- Online Filing Systems: Enables electronic submission of returns, registrations, and disclosures.
- E-Governance Portals: Provides interactive platforms for seamless interaction with regulatory authorities.
- Mobile Applications: Facilitates on-the-go access to compliance information and reporting.
Impact on Businesses
- Improved Efficiency: Accelerates compliance processes, allowing businesses to focus on core operations.
- Enhanced Transparency: Promotes transparency in compliance practices and regulatory interactions.
- Reduced Compliance Risks: Mitigates risks of non-compliance through proactive monitoring and alerts.
- Scalability: Scales compliance operations with business growth and evolving regulatory landscapes.
Future Trends
- AI and Machine Learning: Integration of advanced technologies for predictive analytics and compliance insights.
- Blockchain: Enhancing data security and transparency in compliance transactions.
- Regulatory Integration: Continued integration of digital platforms with regulatory bodies for seamless compliance.
Labour Laws Compliance Requirements in India
Ensuring adherence to labour laws compliance requirements is essential for businesses to operate smoothly and legally in India. Here’s a concise overview of key aspects:
- Factory Registration: Mandatory under the Factories Act, 1948.
- Establishment Registration: Required under the Shops and Establishments Act of respective states.
- Industry-Specific Licenses: Includes environmental clearance, fire safety, and health trade licenses.
- Mandatory Registers: Wage, attendance, leave, and overtime registers.
- Health and Safety Records: Accident registers and safety training logs.
- Equipment Logs: Maintenance and inspection records for machinery.
- Annual Returns: Submission to state labor departments.
- Quarterly Returns: Specific industry requirements.
- Event-Based Reports: Accident and incident reporting.
- Digital Compliance Portals: For submitting returns and license applications.
- E-Governance Integration: Streamlining compliance management through online systems
Table of Labour Law Compliances Act and Provisions
| Labour Law Act | Provisions |
|---|---|
| Factories Act, 1948 | Ensures the health, safety, welfare, and working hours of workers in factories. Includes provisions for cleanliness, ventilation, and welfare facilities. |
| Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 | Mandates provident fund, pension fund, and deposit-linked insurance for employees in specified establishments. |
| Employees’ State Insurance Act, 1948 | Provides health and social security insurance to workers. Includes benefits like medical, sickness, maternity, disability, and dependent benefits. |
| Minimum Wages Act, 1948 | Establishes minimum wage rates for different types of employment to ensure workers receive fair wages. |
| Payment of Wages Act, 1936 | Regulates the payment of wages to certain classes of employees, ensuring timely payment without unauthorized deductions. |
| Payment of Bonus Act, 1965 | Provides for the payment of bonuses to employees based on profits or productivity, applicable to certain establishments. |
| Payment of Gratuity Act, 1972 | Mandates payment of gratuity to employees who have rendered continuous service for at least five years in establishments employing ten or more persons. |
| Industrial Disputes Act, 1947 | Provides mechanisms for the investigation and settlement of industrial disputes, including strikes, lockouts, layoffs, and retrenchments. |
| Shops and Establishments Act | Governs conditions of work and employment in shops, commercial establishments, residential hotels, restaurants, theatres, and other places of public amusement or entertainment. |
| Contract Labour (Regulation and Abolition) Act, 1970 | Regulates the employment of contract labour in some establishments & provides for its abolition in some circumstances. |
| Maternity Benefit Act, 1961 | Provides maternity benefits to female employees, including paid leave, nursing breaks, and protection against dismissal during maternity. |
| Child Labour (Prohibition and Regulation) Act, 1986 | Prohibits the employment of children in certain hazardous occupations and regulates the conditions of work in others. |
| Equal Remuneration Act, 1976 | Ensures equal remuneration for men and women workers for the same work or work of a similar nature and prevents gender discrimination in recruitment and other conditions of service. |
| Employees’ Compensation Act, 1923 | Allows for the payment of recompense to workers who suffer harm or pass away while doing their job duties. |
| Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal Act) | Enables women to be protected from sexual harassment at work and to have complaints handled and prevented. |
| Trade Unions Act, 1926 | Provides for the registration of trade unions and defines their rights, liabilities, and immunities. |
| Apprentices Act, 1961 | Regulates the training of apprentices in industry to ensure skill development and proper utilization of manpower. |
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