List of Statutory Compliance in India

Statutory compliance refers to the legal framework that organizations must adhere to while dealing with their employees. In India, these laws are established by various acts and cover a wide range of areas including labour laws, tax laws, and health and safety regulations. Here is a comprehensive list of key statutory compliances that businesses in India need to follow:

 The Factories Act, 1948

• Governs the working conditions in factories, ensuring the safety, health, and welfare of workers.
• Mandates proper working hours, cleanliness, ventilation, and provisions for the safety of employees.

Read more: (Factory compliance)

The Employees’ Provident Fund (EPF) Act, 1952

• Ensures that both employers and employees contribute to a savings scheme for the employee’s retirement.
• Applicable to organizations with 20 or more employees.

The Employees’ State Insurance (ESI) Act, 1948

• Provides for medical, sickness, maternity, and disability benefits to employees earning less than a specified amount.
• Employers must contribute a percentage of the employee’s wages towards this fund.

The Payment of Wages Act, 1936

• Regulates the payment of wages to employees, ensuring timely and complete payment without unauthorized deductions.
• Applicable to employees earning below a certain threshold.

 The Minimum Wages Act, 1948

• Establishes minimum wage rates for various types of employment, ensuring that workers receive fair compensation.
• Employers are required to pay no less than the prescribed minimum wages to their employees.

 The Payment of Bonus Act, 1965

• Mandates the payment of bonuses to employees, typically linked to the organization’s profits.
• Applicable to establishments with 20 or more employees.

The Payment of Gratuity Act, 1972

• Provides for a lump sum payment to employees upon their retirement, resignation, or death, provided they have completed at least five years of continuous service.
• Applies to establishments with 10 or more employees.

The Maternity Benefit Act, 1961

• Grants maternity leave and benefits to female employees, ensuring job security during maternity.
• Applicable to all establishments with 10 or more employees.

The Equal Remuneration Act, 1976

• Ensures that men and women are paid equally for performing the same or similar work.
• Prohibits discrimination in recruitment and employment conditions based on gender.

The Industrial Disputes Act, 1947

• Addresses the resolution of industrial disputes, providing mechanisms for investigation and settlement.
• Governs the conditions for layoffs, retrenchment, and closure of establishments.

The Shops and Establishments Act

• Regulates the working conditions of employees in shops and commercial establishments.
• Varies from state to state, covering aspects like working hours, rest intervals, and holidays. 

The Contract Labour (Regulation and Abolition) Act, 1970

• Regulates the employment of contract labour in certain establishments, ensuring fair treatment and working conditions.
• Applies to establishments with 20 or more contract workers.

Read more: ( Ensuring contract labour: compliance Regulatory insights and best Practices )

The Income Tax Act, 1961

• Governs the taxation of income for individuals and companies, including the deduction of tax at source (TDS) for employees.
• Requires employers to deduct and deposit TDS from employees’ salaries as per prescribed rates.

 The Goods and Services Tax (GST) Act, 2017

• Regulates the collection and remittance of GST on goods and services supplied by the organization.
• Requires proper invoicing, filing of returns, and payment of taxes as per the GST regime.

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

• Mandates the establishment of Internal Complaints Committees (ICC) in organizations to address complaints of sexual harassment.
• Ensures a safe working environment for women.

The Companies Act, 2013

• Governs the incorporation, responsibilities, and management of companies in India.
• Includes compliance requirements related to corporate governance, financial reporting, and auditing.

Adhering to statutory compliance is crucial for businesses to operate legally and ethically in India. Non-compliance can result in legal penalties, financial losses, and damage to the organization’s reputation. Therefore, it’s essential for companies to stay updated with the latest regulations and ensure that all statutory requirements are met in a timely and accurate manner.

Staying compliant with statutory regulations is crucial for the success and sustainability of any business. TalentPro’s compliance service such as Factory compliance, Payroll compliance, vendor  compliance, Single-window and Establishment compliance offers a comprehensive solution that not only ensures adherence to legal requirements but also enhances your overall business efficiency. By partnering with TalentPro, you can focus on your core business operations, confident that your compliance needs are in expert hands.