Labour Laws

Labour Law Compliance Rules

Labour Law Compliance is the mandatory rules and regulations which the companies have to follow. These are a set of rules and conditions set for employment.

The Economy and Working culture of the industries have changed and developed over time, but the Labour law compliance rules are still 50-100 years are old.

labour law

Concepts under Labour Law

It includes employee benefits and termination, the rules and regulations set for employees,  etc. There are various acts included in labour Compliance rules. Some major acts included in the labour law compliance rule are:

  • Building and Other Construction Workers (Regulation of Employment and Conditions Services) Act, 1996
  • Contract Labour (Regulation and Abolition) Act, 1970, Equal Remuneration Act,1976
  • Minimum Wages Act,1948 and Mines Act, 1952, Industrial Employment (Standing Order) Act 1946, etc.

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Labour law Compliances

Labour law compliances are enforced by the State as well as the Central Government. Following are the conditions required for an Act to be enforced

The Contract Labour (Regulation and Abolition) Act, 1970

  • If an establishment has 20 or more than 20 workers employed there for the past 12 months as contract labour.
  • 20 or more than 20 workers employed by the contractor in the past 12 months as contract labour.

It is not applicable places where the nature of the work is casual. If the employer does not register under the act, then the employer cannot contract labour.

Building And Other Construction Workers Act, 1996

It applies to the workplaces where 10 or more than 10 workers were employed directly through a Contractor in a construction site. This act is not applicable to building and construction work where the Factories Act,1948 or Mines Act, 1952 applies.

The objective of the act is to collect cess from the construction work and use that money for the welfare of the construction site workers who are registered under the act. The amount to collect is 1% of the total cost to build the building.

Minimum Wages Act, 1948

Section 12 of the minimum wages, says that the contractor is liable to pay minimum wages to its workers who are employed as scheduled workers. Section 14 says that the wages will be doubled if a worker is doing over time. The wages per hour will be doubled during overtime.

Payment of wages Act, 1936

Section 4 talks of the about the fixation of minimum wages which shall not exceed more than 1 month. Section 5 of the Act says that the payment of the wages will be done before the 7th day of the last day of the wage period in the case where there are less than 1000 employees. 10 days before in other cases. Section 13-A talks about the maintenance of registers and records.

Employment State Insurance Act, 1948

Section 2(12) of the Act talks its applicability to Non- Seasonal factories who employ 10 or more persons. Section 1(5) extends the scope of applicability to hotels, shops, restaurants and cinemas, newspaper factories where 20 or more persons are employed. The scheme also applies to Educational Institutes and Private medicals.

Industrial Employment (Standing Order) Act, 1946

According to this Act, it applies to the industries where 100 or more than 100 workers are employed previously in the past 12 months.

Factories Act, 1948

This Act is applicable to the factories which are defined under this act. Where there are 20 or more people employed in the factory in the previous 12 months.

Events of Non- Compliance

  1. Fines
  2. Penalties
  3. Lawsuit
  4. Loss of Credibility
  5. Loss of Contract
  6. Closure of business

Labour Law compliance rules in India are governed by all these Acts which are very old. These rules are ever evolving and it is on the companies to keep a close eye on these changes.

Solved Example on Labour Law Compliance

Question: Which of the following Act is not a Labour Law Compliance Act?

  1. Minimum Wages Act, 1948
  2. Mines Act, 1952
  3. The Motor Vehicles Act, 1988
  4. Equal Remuneration Act, 1976

Answer: The correct option is C. The Motor Vehicle Act,1988 governs all the motor laws in India. The other three Acts are the essential Labour Law Compliance Act. These are the mandatory rules and regulations which have to be followed by the Industries.

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One response to “Labour Law Compliance Rules”

  1. Aakla says:

    Thanks for sharing this information with us, I learn about labour-law-compliance-rules from your blog.

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