Indian labour law encyclopedia

Labour law compliance in India

Labour Law compliance in India

Labour law compliance can be difficult. It is mandated for all companies, regardless of size and industry to comply with certain rules and governances. These are intended at unifying and standardising labour law practices, at providing better opportunities and facilities for the employed, and at allowing for more employment opportunities and encouraging the youth to be employed and skilled.

Statutory compliance of labour laws present a daunting prospect to companies. For one, it is not easy complying with a host of different rules and schemes. It becomes more difficult when companies have multiple entities that are present across different states. The complexities of labour laws in various states makes it more difficult for companies to be aware and follow differing rules and mandates.

Non-compliance of labour laws can today prove very costly for companies. Ranging from loss of credibility to heavy penalties and sometimes even closure, no company wants to risk being non-compliant today. This is why labour law compliance in India has become a serious focus for all companies. While some prefer managing the function in-house, most mid and large companies prefer opting for a labour law consultant to manage their compliance concerns.

Labour law compliance has been changing more now than before. The simplified processes of recording and submission, unification of laws to avoid duplication and initiatives to encourage employment and provide better facilities are just some of the latest endeavours being made to improve the climate of HR compliance in the country. The onus also lies on companies to make the most of the initiatives and drive them to benefit.

Changing government policies influence companies significantly, and the need for a capable labour law consultant, who can interpret, deconstruct and apply these changes to company structure is imperative. Application of Acts like POSH, revision of basic and minimum wages, adherence to mandated holidays and the ongoing revision to norms for Shops and Establishments has necessitated a need for expertise in labour law compliance in India. When these are understood and implemented correctly, there is a lot that both employers and establishments stand to gain from the latest institutions by the government.