labor law compliance

Labor law compliance refers to adhering to all applicable labor regulations, laws, and standards set by the government or regulatory authorities. This is essential for both employers and contractors to ensure fair treatment of workers and avoid legal penalties.

✅ Key Areas of Labor Law Compliance
1. Wages and Payment
Minimum Wages Act: Pay at least the government-mandated minimum wage.

Payment of Wages Act: Ensure timely and complete payment to employees (usually within 7 or 10 days after wage period ends).

2. Working Hours and Overtime
Factories Act / Shops & Establishments Act:

Normal working hours: 8–9 hours/day and 48 hours/week.

Overtime: Paid at double the normal rate for work beyond normal hours.

3. Leave and Holidays
Comply with laws around:

Paid leave

Casual and sick leave

Public holidays

4. Employment Conditions
Contract Labour (Regulation & Abolition) Act:

Register and obtain contractor license if employing 10+ contract workers.

Ensure wage parity with regular workers for similar roles.

5. Health, Safety & Welfare
Provide:

Clean drinking water

Sanitation facilities

First aid kits

Safety equipment (PPE) for hazardous work

6. Social Security
Employees’ Provident Fund (EPF):

Mandatory for establishments with 20+ employees.

Contribution: 12% by employer and 12% by employee.

Employees’ State Insurance (ESI):

Applicable if you have 10+ employees earning less than ₹21,000/month.

Provides medical and sickness benefits.

7. Gratuity
Payment of Gratuity Act:

Applicable to establishments with 10+ employees.

Payable after 5 years of continuous service.

8. Anti-Discrimination & Harassment
Comply with:

Equal Remuneration Act

POSH (Prevention of Sexual Harassment at Workplace) Act

9. Record-Keeping and Display
Maintain:

Muster rolls, wage registers, leave registers

Display labor law abstracts and notices in local language

📋 Compliance Checklist for Employers & Contractors
Requirement Applicable Act Mandatory For
Minimum Wage Payment Minimum Wages Act All employers
Timely Salary Payment Payment of Wages Act All employers
Provident Fund Registration EPF Act 20+ employees
ESI Registration ESI Act 10+ employees (<₹21k)
Labor License (Form V & IV) Contract Labour Act 10+ contract workers
Display of Notices Labour Laws All establishments
Health & Safety Measures Factories Act / BOCW Industrial establishments
Sexual Harassment Policy POSH Act 10+ employees

⚠️ Consequences of Non-Compliance
Fines and penalties

Cancellation of licenses

Legal prosecution

Ban on contracts with government/public sector