Labour Law Compliance in India

Date: 27 October 2023 

Category Tagging:  Labour Regulations 

India has a complex and ever-changing Labour Law landscape. Labour laws are a set of compliances that set the tone for the treatment of the labour force in the workplace. These laws aim to operate to prevent exploitation of workmen as well as safeguard the interests of the employer.

Labour Laws in India

Labour Laws are imposed by the State as well as the Central Government. In addition to the Central enactments, each State Government has enacted State-specific legislations and further rules pursuant to the Central legislations leading to complexities. Labour law compliances are not just restricted to filing returns, but these records serve as evidence for the compliance of the laws and must be produced to the authorities in case of any discrepancies. Compliance and inspection are an instrumental part of ensuring adherence with laws applicable to industries, factories or shops and establishments.

Compliances under various Labour Legislations

Apart from obtaining licences and registrations, maintenance of registers, filing of periodical returns, etc. under the applicable labour and employment legislations, the employers in India are also obligated to undertake the following to comply with statutory provisions

1. Payment of Gratuity Act, 1972 – 

• Submission of notice of opening of an establishment and Notice of change in constitution 

• Payment of gratuity on receipt of application from the employee/ nominee/ legal heir 

• Display of notice of name of authorised officer of the employer

• Maintenance of registers as prescribed under the Act

2. Minimum Wages Act, 1948- 

• Provision of minimum rate of wages as prescribed by the government

• Deductions from the wages of a person employed in a scheduled employment

• Maintenance, preservation and production of registers, records and notices

• Submission of returns

3. Shops and Establishments Act-

• Application for registration of establishments under the Shops & Establishment Act

• Display of Registration Certificate, Display Board in local language, 

• Cleanliness, Ventilation, Precaution against fire, use of power-driven machinery, First-aid appliances

• Leave, Encashment of leave, Sick leave, Casual leave, Special casual leave, Other holidays

• Register of Employment wages and leave

• Filing of Annual Return

4. Apprentices Act, 1961-

• Appointment of apprentices and submission of contract

• Submission of progress report of the eligible trade apprentices

• Maintain register of attendance 

5. Child and Adolescent Labour (Prohibition and Regulation) Act, 1986-

• Prohibition of employment of children in any occupation and process

• Prohibition of employment of adolescents in certain hazardous occupations and processes

• Display of notice 

6. Contract Labour (Regulation & Abolition) Act, 1970– 

• Registration of establishments

• Working conditions of workmen and Adequate facilities like drinking water, canteen etc for workmen. 

• Adequate facilities for women and workers 

• Maintenance of registers as required under the Act

• Submission of returns 

7. Workmen’s Compensation Act, 1923- 

• Provision of compensation in case of accident

• Submission of returns

• Maintenance of Notice -books and display of abstract of the Act

 

8. Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 –

• Notification of vacancies to Local Employment Exchanges

• Submission of returns 

9. Equal Remuneration Act, 1976– 

• No discrimination with regard to payment for the same work done by men and women workers

• Maintenance of register

10. Industrial Disputes Act, 1947-

• Formation of Works Committee in establishment with 100 or more employees 

• Grievance Redressal Mechanism 

• Compensation in case of lay off 

• Prohibition of unfair labour practice

• Maintenance of register

11. Maternity Benefit Act, 1961 – 

• Leave and Payment of Maternity benefit

• Maintenance of register

• Submission of returns  

12. Rights of Persons with Disabilities Act, 2016-

• Formulate and notify an Equal Opportunity Policy

• Maintain records and information of persons with disabilities 

13. Payment of Wages Act, 1936 – 

• Payment of wages without any unauthorised deductions

• Maintenance of registers of fines, deductions, advance, wages etc

• Displays as per the provisions of the Act

• Submission of annual returns

14. Payment of Bonus Act, 1965 – 

• Payment of bonus in accordance with the provisions of the Act

• Submission of returns. 

15. Employee State Insurance Act, 1948- 

• Remittance of contribution every month

• Maintenance of registers

• Submission of returns as per the provisions of the Act

16. Employee’s Provident Fund and Miscellaneous Provisions Act, 1952-

• Payment of contribution every month

• Maintenance of registers

• Submission of returns 

17. Transgender Persons (Protection of Rights) Act, 2019 

• Do not discriminate against Transgender Person

• Provide facilities to Transgender Persons

• Publish and Display an Equal Opportunity Policy for transgender persons

18. Tax on Professions, Trades, Callings and Employment Act-

• Application for certificate of registration and   certificate of enrolment under the Act 

• Deduction of profession tax

• Payment of Professional Tax for the Organization to the State Government Account 

• Furnishing monthly return of the Professional Tax deducted from the employees and paid to the state government

• Maintenance of registers

There are many more labour regulations which can be evaluated for applicability. 

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Any comments / feedback / corrections, most welcome. Please contact:

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