Understanding Labour Laws 

Labour laws, also called workplace or employment laws, are a set of regulations that are designed to govern the relationship between employers and employees. With these laws, employers and employees understand their rights and responsibilities, creating a fair and safe working environment. Labour laws cover a range of areas, such as wages, working hours, discrimination, workplace safety, and more.

Common Labour Laws and Their Violations 

As labour law advisor, we have shared the common laws and violations essential for employees to understand. Here is what you should be aware of during your employment period.

• Minimum Wages Act, 1948 

It is one of the fundamental labour laws in India as it sets the minimum wage rates that must be paid to different categories of workers. When employers pay their workers less than the minimum wage rate according to the act, it is violated. Such a violation of the act can lead to monetary penalties and legal action against the employer.

• Payment of Wages Act, 1936 

This act governs the payment of wages to employees as well as regulates issues such as fines, deductions, and timing of wage payments. Violations of the act may include practices such as delayed wage payment, fines or illegal deductions that exceed the limits set by the act. Employers violating this act can face penalties and may need to compensate affected employees.

• Industrial Disputes Act, 1947 

This act covers issues between employers and employees, including layoffs, closure, and retrenchment. Violation of this act may involve termination without proper notice or compensation, illegal layoffs, or failure to follow due process in resolving disputes. Employers who are found guilty under this act may be required to reinstate employees and pay compensation.

• Factories Act, 1948 

This act lays down regulations for the working conditions of workers in the factories. It includes provision for the safety, health, and welfare of workers. Having unsafe working conditions, unavailability of proper facilities, inappropriate working hours and overtime can be included under violation of the act. Employers who are non-compliant with the law can face penalties and even the closure of their factories.

• Equal Remuneration Act, 1976 

The act prohibits discrimination in the matter of wages on the grounds of gender. Employers paying lower wages to female employees than males for the same work may be considered a violation of this act. Employers violating this act may be liable for monetary penalties and need to adjust wages to ensure gender parity.

• Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 

The act is established with the purpose of encouraging savings during the period of employment, that the funds can be used further for illness, after retirement and for many more reasons. Employers failing to contribute to the EPF as stated by law, improper records or non-payment of due lead to violation of the act. Employers who are found in violation may be subject to fines and legal action.

• Employees’ State Insurance Act, 1948 

The Employees’ State Insurance Act, 1948 provides cash and medical benefits to employees in circumstances like sickness, maternity, or death due to employment injury. Employers failing to register under this act, non-payment of contributions, or denial of offering benefits to eligible employees may be penalized and required to provide necessary benefits after violating the act.

• Maternity Benefit Act, 1961 

This act ensures that working female employees receive maternity benefits, including maternity leave. Employers denying offering maternity benefits or terminating the employment of female employees during maternity leave can lead to a violation of the act. Employers must face legal consequences and compensation claims when found in violation.

• Contract Labor (Regulation and Abolition) Act, 1970 

The act regulates the employment of workers working on contracts and aims to prevent exploitation. Non-registration of contractors, non-compliance with welfare provisions, and engaging contractors for core activities can violate the act. When found violating the act, employers may be penalized and required to regularize the contract labour employment.

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

This act mandates the prevention and redressal of sexual harassment in the workplace. Organizations not having internal complaints committees, inappropriately addressing complaints, or retaliating against complainants leads to violating the act. When employers are found in violation, they may face legal action and reputational damage.

Preventing Labour Law Violations 

Prevention is a key to avoiding violation of labour law in the first place. As one of the promising labour law consultants, we are recommending the following steps to ensure that your organization comply with labour law.

• Educate Management and Employees 

Train your managers and supervisors about labour law and workplace conduct. Also, ensure to foster a culture of respect, diversity and inclusion within the organization.

• Outline Clear Policies 

Create a policy that states acceptable behavior at the workplace, safety guidelines, anti-discrimination policies and procedures for reporting violations. Also, ensure update the policies to stay compliant as labour laws change over time.

• Offer Training 

Conduct employee training programs on various topics such as anti-harassment, safety and wage and hour laws.

• Respond Promptly 

You need to address employee complaints and concerns promptly and thoroughly to prevent escalation.

Prompt Personnel – A Reliable Labour Law Consultancy to Partner With 

Prompt Personnel is leading in this field with over 25 years of experience, providing trusted services to 150+ valuable clients. Having a presence in 7 cities such as Mumbai, Pune, Bengaluru, Delhi, Hyderabad, Chennai and Kolkata, we offer services at the PAN India level. Our experts and labour law advisors stay updated with the latest changes in the laws. They understand the client’s concerns and provide an effective solution to help you stay compliant with the latest labour laws. Along with providing labour law advisory and compliance, we offer services such as HR Outsourcing, Contract Staffing, Temporary Staffing Solutions, Permanent Staffing Solutions, and many more.

Being one of the renowned labour law consultants in Mumbai, Prompt Personnel has been recognized with different achievements. In 2007, ERA awarded us as the fastest-growing staffing company. In 2019, we were recognized with the Madhavrao Bhide Udyog Gaurav Award in the large-scale industry 100 Cr+ category. Recently, in 2023, the Economic Times recognized Prompt Personnel as a future-ready organization in the large-scale category, as well as certified as a great place to work in India.

Moreover, we provide a real-time compliance dashboard that is accessible anytime, anywhere. With the accessibility to a dashboard and guidance from our labour law advisor, your organization can stay compliant with employment laws and regulations reliably.

Get in touch with us today to adhere to labour law compliance!