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LABOR LAW COMPLIANCES

LABOR LAW COMPLIANCES

Today, India has surfaced as one of the most popular business destinations in the world. The impact of corporate culture on the society is so substantial that even the ordinary people prefer to set up their own business.

Therefore, to regulate the corporate sector, several amendments have been made in corporate laws of India from time to time. No matter whether the company is public or private; it has to adhere to the Indian corporate laws. In India, a company has to make a wide variety of compliances periodically. Labor  Law Compliance is considered of great importance to any organization having a business place in India.

Labor Law is the body of law primarily focused on ensuring the protection of the rights of workers in India. It regulates employers, employees and trade unions through various compliances to secure the rights of the employees and labourat large.

The scope of labor compliance is not limited to filing returns and maintaining statutory deposits and records by the employer. In case of any prosecution, these records are to be produced as evidence under various statues. Also, if the company or employer fails to make the compliance, there are severe penalties prescribed by the law.

Indian Labor Law consists of various acts covering every possible aspect for the protection of labor rights. The applicability of law depends on the type of organization. Also, there are multiple laws which apply to employer and employee respectively.

Some of the Labor law compliance required by an organizations:

  1. Registration under the Employee Provident Fund (EPF) act must be done by every establishment having 20 or more employees.
  2. Establishments are required to comply under the Employees’ State Insurance Act.
  3. A monthly contribution toward funds related to EPF and ESI is required by both employer and employee.
  4. Registers are to be maintained, and a return is required to be filed periodically.
  5. In case, the organization is a manufacturing unit, then it must carry-out all compliances provided under Factories Act, 1948.

In the event of non-compliance by a company attracts penal provisions which include imprisonment, fine or both depending on the type of default. Imprisonment may extend to 3 years, or more and fine may be imposed on a daily basis, or a lump sum amount can be charged.

Compliances to the law of the land are mandatory, and companies established in India cannot afford to ignore it. Still, hiring a professional for identifying a relevant labor law and its applicability to the company is quite expensive. Thus to cater this issue adequately, Labor compliance services are available in the market which offers expert service at a very reasonable rate. Companies can opt to avail the Labor Compliance Services and reduce the business cost significantly.

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