Labour Law Compliance in India: A Brief Overview

by Mynd Solution Mynd Integrated

Introduction to Labour Law in India

Labour laws are a crucial set of regulations that govern the treatment of the workforce in a workplace. Workers are the most valuable asset for any organisation, and these laws aim to protect their rights and prevent exploitation. They provide guidelines for companies, workers, and trade unions. Adhering to these laws is essential, as non-compliance can result in actions against the organisation.

How to Ensure Labour Law Compliance in Your Organisation

To ensure compliance with labour laws in your organisation, consider these helpful tips:

·       Document clear and comprehensive policies and procedures.

·       Consistently apply and enforce these policies and procedures.

·       Identify and address any obstacles that hinder compliance.

·       Provide regular training and reinforcement of compliance practises.

·       Stay updated with the latest changes in laws and regulations.

·       Monitor and ensure that all employees adhere to the established procedures.

·       Conduct regular compliance audits to assess adherence.

·       Utilise tools and software to streamline and simplify compliance tasks.

·       Be well informed about which labour laws apply to your company.

Consider creating a labour law compliance checklist and assigning a responsible person to review and mark each item monthly. Alternatively, HR automation software can be utilised to facilitate and ensure smooth compliance processes.

The Four Labour Codes

India has a comprehensive labour law compliance regime, which includes various labour laws. To simplify the process and bring modernisation, the Indian government has consolidated 29 labour legislations into four Labour Codes. These codes are yet to be implemented and aim to streamline compliance with labour laws.

The four Labour Codes are:

·       The Code on Wages, 2019

·       The Industrial Relations Code, 2020

·       The Code on Social Security, 2020

·       The Occupational Safety, Health and Working Conditions Code, 2020

These codes group 44 labour laws into four categories, namely the Wage Code, Social Security Code, Occupational Safety, Health & Working Conditions Code, and Industrial Relations Code. These new regulations will replace the existing 29 labour laws.

The objective of these codes is to simplify and modernise labour regulations in India. Currently, over 90% of the country's 500 million workers are in the unorganised sector.

How do the Labour Codes Affect Contractual Manpower Services?

Contractual manpower services involve hiring workers on a contract basis instead of permanent employment.

The Code on Occupational Safety, Health and Working Conditions (OSHW), 2020, introduced by the Labour and Employment Ministry, proposes simplified processes with one licence, one registration, and one return for Indian establishments. This code replaces the Contract Labour Act (CLRA Act) and brings significant changes to contract labour engagement, including the prohibition of contract labour in core activities.

According to Section 2 (p) of the OSH Code, 2020, 'Core Activity' includes essential activities for which the establishment is set up. Certain activities like sanitation, catering, housekeeping, etc., are excluded from core activities if the establishment is not specifically set up for them.

In exceptional circumstances, the principal employer can engage contract labour for core activities, such as when such activities are regularly done through contractors or during sudden spikes in workload within a specified period.

Explanation of Labour Compliances

Labour laws are enforced by both the State and Central Government. Compliance with these laws involves more than just filing returns; it also requires maintaining records as evidence of adherence to the laws. These records may need to be presented to the authorities in case of any discrepancies or investigations.

Guide to Labour Compliances in India

There are specific laws applicable only to certain work environments, while some laws are mandatory for all organisations. The key acts included in industrial law compliance are:

·       Building and Other Construction Workers Act, 1996

·       Contract Labour Act, 1970

·       Minimum Wages Act, 1948

·       Trade Unions Act, 1926

·       Industrial Employment (Standing Orders) Act, 1946

·       Industrial Disputes Act, 1947

·       Payment of Wages Act, 1936

·       Payment of Bonus Act, 1965

·       Working Journalists (Fixation of Rates of Wages) Act, 1958

·       Factories Act, 1948

·       Plantations Labour Act, 1951

·       Mines Act, 1952

·       Sales Promotion Employees (Conditions of Service) Act, 1976

·       Working Journalists and Other Newspaper Employees (Conditions of Services) and Miscellaneous Provisions Act, 1955

·       Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979

These laws govern various aspects of labour and employment to ensure a fair and regulated work environment.

How can MYND help with Adhering to Labour Law Compliance?

MYND Solutions is a reputable company specialising in Compliance Management Services, with a focus on Statutory Compliance Services in HR. Boasting an average of 10+ years of experience in labour laws and compliance-related activities, MYND offers consistent and reliable support to diverse industries across India. Their services encompass a comprehensive approach to labour law compliance, risk management, and statutory adherence.

The core of MYND's Compliance Management Solution is a state-of-the-art Compliance Automation Platform, which is backed by a team of expert professionals and a shared service centre. This unique combination ensures efficient and cost-effective management of compliance needs.

Conclusion

Adhering to labour laws is crucial for treating workers fairly and promoting a positive work environment. Organisations must be mindful of their obligations under these laws and take proactive measures to ensure compliance.

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Created on Oct 10th 2023 05:48. Viewed 73 times.

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