The labor laws change on a widespread basis in India, and it is essential to keep abreast of the latest changes that are happening. Labor Law compliance is a crucial thing to carry out business successfully. For businesses to operate successfully in India, it is essential that the companies must avoid compliance risk and follow the statutory compliance checklist. Statutory compliance outsourcing helps you to ensure compliance without having to maintain a separate unit for the same. It is very vital for every business to be compliant with all the laws of the land.
Here is a list of labor laws that need to be strictly adhered to by a corporate entity while carrying out its business.
1) Shops and commercial establishments Act
2) The Employees Provident Funds and Miscellaneous Provision act – 1952(EPF)
3) The Employee state Insurance corporation act – 1948(ESIC)
4) The Professional Tax Act (PT) 1975
5) The Labor Welfare Fund Act (LWF) 1965
6) The Contract Labor (Regulation & Abolition) ACT – 1970
7) The Child Labor (Prohibition &Abolition Act), 1986
8) The Minimum Wages Act – 1948
9) The Payment of Wages Act – 1936
10) The Payment of Bonus Act – 1965
11) The Maternity Benefit Act – 1961
12) The Payment of Gratuity Act – 1972
13) The Equal Remuneration Act – 1976
14) The Industrial Establishment Act – 1963
15) The Employment Exchange Act – 1959
16) Sexual Harassment of Women at Workplace Act – 2013
17) The Employees Compensation Act – 1923
18) The Industrial Employment Act – 1946
19) The Industrial Disputes Act, 1947
20) The Apprentice Act – 1961
21) The interstate Migrant Workmen Act, 1979
22) The Factories Act, 1948
23) The trade unions act, 1926
Statutory Compliance Services broadly falls into three major categories such as
A) Statutory Compliance Audit
B) Statutory Advisory Services
C) Statutory benefits administration
Statutory Compliance Outsourcing
There are so many benefits of Statutory Compliance Management. Some of these are:
1) Good corporate governance
2) Increase in focus on Strategic business areas
3) Reduction in labor overheads
4) Compliance and adherence to different labor laws
5) Avoidance of extra costs that may arise out of non-compliance
6) Maintenance of all the records that is relevant to compliance
Scope of work
The scope of work in Statutory Compliance Management is simply very vast. Here is the list of services that you can expect from your Statutory Compliance Management Vendor that will cover the labor laws compliance applicable to your factory or establishment.
1) Auditing Labor Law Compliance
2) License Application/ Amendment/ renewal
3) Maintenance of Statutory records and returns
4) Liaison with Factories, Labor, ESI and PF authorities
5) Remittance of statutory payments
6) Continuous monitoring of contractor compliances
7) Nominations under different legislation
8) Benefits of labor legislation
9) Accident Coordination activities
It is vital to conduct a one-time audit, to access the current status of statutory compliance according to various central and state acts. A detailed report is generally prepared based on this one-time audit. The audit will help to understand the various strong and weak areas in terms of compliance and advise us how to move forward. If the Statutory Compliance Management work is outsourced to a third party, then obviously the business leaders will need to discuss with the vendor, the reports based on audit findings and then proceed with other activities to make sure, that the business is one hundred percent compliant to all statutes and labor laws.
No matter whatever the size of the organization – small, medium or large, there will always be growing challenge of complying with rapidly evolving and highly complex compliance requirements. Outsourcing Statutory Compliance is an easy way out since there are lots of professionally well-equipped statutory compliance management companies in India.
