Labor laws compliance means ensuring that labour laws make by the either state or centre make for employees, unions are accept and follow. It also guarantees that particular labour laws are observe, which protect employees’ rights at work, and that a better working environment is maintain throughout the period of employment.
History of Labor laws in India
The beginning of labor laws can be seen from the time of the British colonial era. At that time, industrial laws used to protect the interest of British employees. The Factories Act of 1883 was made with the aim to make Indian labour more expensive. It was done to protect the British Textile business from competition. The Trade Dispute Act of 1929 was make with an attempt to regulate employer – worker relationships but it did not contain a dispute resolution mechanism. In the post-colonial era, independent India moved towards a direct labor-capital connection. In December 1947, a tripartite meeting created the groundwork for a partnership that guaranteed workers decent compensation and working conditions in exchange for their collaboration in production. This agreement was a part of the national economic strategy development, comprising a three-year truce free of strikes and lockouts.
What is labour law compliance
Labour law compliance are the rules and regulations which a company must follow. Compliance with the law is a set of principles and norms for employees. There is a list of certain labour law compliances in India. These are:
- Employees Compensation Act which compensates employees who got injured or died at the workplace.
- Trade Unions Act governs the laws related to trade union.
- Industrial Employment (Standing Orders) Act classifies the workman, leave policies etc.
- Industrial Disputes Act guides in investigation and settlement of disputes.
- Minimum Wages Act prescribes the minimum wage and helps in minimising exploitation of labour.
- Factories Act set out the safety standards for workers working in factories.
- Labour Welfare Fund Act is issue to protect labour rights.
- Industrial Establishment (N&FH) Act provides the guidelines for providing national and festival holidays to employees.
- Apprentices Act regulates the employment of apprentices in certain industries.
In recent years, the Indian government has implemented a number of labour law reforms aiming at streamlining and modernising existing legislation. Key revisions include the 2020 Occupational Safety, Health, and Working Conditions Code, the 2020 Industrial Relations Code, and the 2020 Social Security Code. These regulations aim to provide a comprehensive legal framework for protecting workers’ rights and improving the ease of doing business in the country.
These reforms has cast a duty of compliance on the employers like Occupational Safety, Health and Working Conditions Code of 2020 obliges the employers to maintain the records of workplace accidents, injuries and illness. The aim is to ensure a healthy and safe workplace environment for employees.
Similarly, the Industrial Relations Code of 2020 requires firms to provide prior notification to the government before any employee layoff or retrenchment, which has significant financial and operational implications.
How to Ensure Compliance with Labor Laws
- The first step in ensuring compliance is to identify the correct government authority overseeing your business as the regulations might vary based on type of business and its geographical location.
- The business should adhere to employment and service regulations. There are two major acts:
- Shops and Establishments Act, which governs the working conditions of employees in shops, hotels, theatres etc.
- Factories Act which focuses on health and safety of workers in manufacturing units.
- For compliance, it is important to draft your company policies in alliance with these laws. This entails creating standard operating procedures (SOPs) that reflect these legal responsibilities, giving training to HR and management workers, and routinely revising policies as laws change.
- For ensuring compliance, it is important to know which laws apply to your business. You should engage with legal expert to get the understanding of laws. Be update with the changes in labour laws as these laws are subject to change.
- You should also prepare a standard compliance checklist to keep track of all compliance related tasks. In the checklist, include all the rules and regulations which your business needs to comply with. Along with this, include task such as filing returns, maintaining registers etc.
- Ensuring compliance with labour regulations in India is a difficult process that necessitates diligent attention to numerous regulatory criteria. Employers have two major alternatives for managing compliance: form an in-house compliance team or outsource to a reputable compliance expert. Both approaches have advantages and challenges.
It is important to ensure compliance with labor laws as it helps businesses running ethically and legally. Employers should take proactive step to manage compliances. These can be done by making an in – house team or outsourcing a team. Businesses can reduce risks, avoid penalties, and establish a fair and compliant workplace by adhering to clear standards and keeping a comprehensive compliance checklist.
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