This document can be downloaded using the link at the bottom.
What is Statutory Compliance?
Statutory compliance in HR refers to the legal framework within which organizations must operate while dealing with their employees.
Every country has several hundreds of federal and state labour laws that companies need to align with. This list is forever being added to.
A lot of your company’s effort and money goes into ensuring compliance to these laws which could deal with a range of issues; from the payment of minimum wages to maternity benefits or professional taxes.
Therefore, dealing with statutory compliance requires for companies to be well-versed with the various labor regulations in their country of operation.
What is the Need for Statutory Compliance?
Adhering to statutory compliances is necessary for all big and small companies in the world to keep their businesses safe from the legal trouble. A deep knowledge of statutory compliances is required to minimize the risk associated with the noncompliance of statutory requirements.
If companies fail to adhere to statutory compliances, they may have to face heavy penalties which are several times more than complying with legal guidelines. That is why every company invests a huge amount of money, effort and time to meet compliance requirements from professional tax to minimum wages act. To help in this, the company seeks expert advice from labour law and taxation law experts.
In order to manage with demanding regulatory environment, every company should be well versed and take notice of all regulations in the labour laws. They need to formulate efficient ways to maintain compliance and minimize risks.
In India, here’s a list of rules all the organisations need to abide by:
• Shops and Commercial Establishments Act (S&E)
• The Employees Provident Funds and Miscellaneous Provision Act – 1952 (EPF)
• The Employees State Insurance Corporation Act – 1948 (ESIC)
• The Professional Tax Act (PT) 1975
• The Labour Welfare Fund Act (LWF) 1965
• The Contract Labour (Regulation & Abolition) Act – 1970 (CLRA)
• The Child Labour (Prohibition & Regulation Act), 1986
• The Minimum Wages Act-1948
• The Payment of Wages Act-1936
• The Payment of Bonus Act-1965
• The Maternity Benefit Act-1961
• The Payment of Gratuity Act-1972
• The Equal Remuneration Act-1976
• The Industrial Establishment (N&FH) ACT 1963
• The Employment Exchange (Compulsory Notification of Vacancies) ACT-1959
• Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) ACT, 2013
• The Employees Compensation ACT-1923
• The Industrial Employment (Standing Orders) ACT 1946 – Model Standing Order Only
• The Industrial Disputes ACT 1947
• The Apprentice ACT, 1961
• The Interstate Migrant Workmen (Regulation of Employment and Conditions of Services) ACT, 1979
• The Factories ACT, 1948
• The Trade Unions Act, 1926
Click here to download this document.