Statutory compliance adherence furnishes an incredible deal of security, starting from employees’ minimum wages to the company’s business existence. Every country formulates its own set of rules for institutions to follow, which will be best explained by the labour law consultancy. Statutory Compliance in HR is important, as seen from both the organization’s and employees’ perspectives. Indian Government provides employee benefit acts as health and safety, minimum wages, industrial relations, social security, women and child employment, and organization benefit acts as provident fund, trade union, professional tax, ESI, etc. Rules regarding HR compliance are allocated to specific sectors:

Industrial Relations Guide for Statutory Compliance:

The Industrial Disputes Act, 1947

The industrial disputes act- of 1947, made provisions for settling and investigating disputes between employee-employee. The objective of this act is to ‘maintain harmony and peace in work culture in any Indian Establishment.’ This Act applies to the entire nation, including establishments for distribution, business, manufacture, and trade. However, it doesn’t encircle people at the administrative or managerial level and individuals subject to the Indian Navy, Indian Air Force or Indian Army.

Women’s Benefits:

Equal Remuneration act, 1976

As the name implies, the Equal Remuneration Act encompasses a gender-based equal payment policy for industries. It assures uniform payment to the employees irrespective of women or men to avoid any sort of gender bias. It came into the picture because payment given to women was lower than that of This came into the picture when the women were paid less than men, albeit the amount of work was the same. Labour law advisors suggest that non-compliance with this Act can involve serious penalties and fines.

Maternity Benefit Act, 1961

The maternity benefit act provides women in their motherhood with certain months of paid leaves during their maternity stage to take care of the child. It implies that after maternity, she can persist in the job without any disturbance from made leaves.

Social security:

The Payment of Gratuity Act, 1972

The payment of gratuity act guarantees advantages like incentives and gratuity to the employees working in private sectors, railways, shops, mines, oilfields, factories, and ports.

The Employees’ Provident Fund & Miscellaneous Provisions (Amendment) Act, 1952

The statutory provident fund act is administered for the social security of the employee. The labour law compliance suggests that the Employees’ Provident Fund Act is accountable for and liable for any firm employing more than 20 employees. Every employee of the establishment, during his/her employment, contributes some amount of their salary to the Provident Fund.

The Employees’ State Insurance – ESI Act, 1948

Employees’ State Insurance act guarantees absolute medical security, including injuries, maternity, and sickness for employees functioning in non-seasonal factories, including management with more than 10 employees and non-power and other organizations with more than 20 employees.

Tax Deducted at Source (TDS)

TDS or Tax Deducted at Source is a certain amount of monetary charges that are deducted from the employee’s income as an account of income tax to lessen the tax evasion afterwards. Employees can file a TDS return with the help of their respective labour law consultancy for the deducted tax, which they can get refunded.

Wages:

The Payment of Wages (Amendment) Act, 2017 (No.1 of 2017)

The Payment of wages Act guarantees the income of employees at a particular time without any additional deductions other than those articulated by the government authority. Labour law compliance suggests that this does not apply to workers having Rs. 24,000 wages each month.

Minimum Wages Act, 1948

The Minimum Wages Act, of 1948 by the Indian Parliament, states that it delivers minimum salaries/wages to unskilled and skilled labourers. The Indian Constitution has defined a precise living wage that includes primary livelihood, including education, food, comfort, health, and dignity.

Statutory Compliance with rules and ordinances in payroll is a profound legal matter for both organizations and employees’ social security. The Indian Government has declared eclectic acts and regulations to process employee payments and much more. According to the labour law consultants like Prompt Personnel, every establishment is liable to follow these rules to avoid any legal consequences. Whether to obey it or not might be a corporation’s individual decision, but it can have some severe implications.