Labour Law Advisory & Compliance
Labour Law Compliances needs complete coherence with the rules & regulations under various enactments relating to Labour Law and therefore it is an act of being in accordance with the conditions and guidelines legislated there under. Since non-compliance or default in such compliance often result in legal punishment, including imprisonment and fines. Hence every establishment in India is under an obligation to comply with the provisions of various enactments under labour Law and to ensure that good relation between the employer and the employee is maintained. AARAMBAN Consultancy ensures that all its clients are under complete compliance.
Management of Statutory Compliance under Labour Law is a wide subject which consists of assessment of risk and scrutiny of the same. Every establishment is required to be well equipped with such mechanism so that the directors of the establishment are provided with certain level of ease in respect of statutory compliance which will enable them focus on the core activity of their business.
We are expert in the statutory compliances associated to below mentioned act
Employees Provident Funds and Miscellaneous Provisions Act, 1952
The Employees Provident Funds and Miscellaneous Provisions Act, 1952 (the "EPF Act") provides for the institution of provident funds, pension funds, and deposit-linked insurance funds for employees and applies to all establishments employing 20 or more persons or class of persons. An establishment to which the EPF Act applies shall continue to be governed by this Act, notwithstanding that the number of persons employed therein at any time falls below 20.
We offer below services
- Registration of Establishment in EPF
- Preparing challans on timely basis
- Maintaining Nomination Form (F-2), Declaration Form
- Consulting Employees for PF withdrawal
- Regular Visit and correspondence with PF office
- Assistance during inspection and inquiries
- Consulting employees of establishment in claiming Pension
- Consulting employees in claiming / obtaining superannuation pension.
- Consulting employees to check PF balance, track claim status
- Replying to notices under EPF act
- UAN generation, activation& seeding KYC etc
- Conducting seminars to induct employees about the benefits associated with PF
- Timely updation and proper Guidelines, if any changes in Act or rules.
Employees' State Insurance Act, 1948
The Employees'State Insurance Act, 1948 (the ESI Act) is a social welfare legislation enacted with the objective of providing certain benefits to employees in case of sickness, maternity and employment injury. In terms of the provisions of the ESI Act, the eligible employees will receive medical relief, cash benefits, maternity benefits, pension to dependants of deceased workers and compensation for fatal or other injuries and diseases. It is applicable to establishments where 10 or more persons are employed.The employer should get his factory or establishment registered with the Employees State Insurance Corporation (ESIC) within 15 days after the Act becomes applicable to it, and obtain the employer code number.
We offer below services
- Registration of Establishment in ESIC
- Obtaining sub codes for branch offices
- Preparing and Submitting challans on timely basis
- Providing day to day consultancy on matters pertaining to ESI Act
- Online Registration of Employees and issue of TICe
- Online correction of employee details
- Assistance in preparation and maintenance of inspection & accident books
- Furnishing of particulars of change in ownership / management of the establishment
- Attend inspection and replying to notices
- Timely updation and proper Guidelines, if any changes in Act or Rules
- Conducting seminars to induct employees about the benefits associated with ESI
Professional Tax
Professional tax can be defined as a tax that is levied by a state government on all individuals who earn a living through any medium. A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this professional tax. This must not be confused with the definition of other professionals such as doctors or lawyers. This is a type of tax that needs to be paid by each and every individual earning income.
We offer below services
- Registration under Professional Tax (PAN India Level)
- Preparing monthly challans
- Returns filing
- Communicate Rates as per Government policy changes
- Assistance during inspection and inquiries
Labour Welfare Fund
Labour welfare fund is a statutory contribution managed by individual state authorities. The Labour Welfare Fund Act incorporates various services, benefits and facilities offered to the employee by the employer. Such facilities are offered by the means of contribution from the employer and the employee.
Various state legislatures have enacted an Act exclusively focusing on welfare of the workers, known as the Labour Welfare Fund Act. The Labour Welfare Fund Act incorporates various services, benefits and facilities offered to the employee by the employer. Such facilities are offered by the means of contribution from the employer and the employee. However, the rate of contribution may differ from one state to another.
We offer below services
- Registration under LWF Act (PAN India Level)
- Preparing & Submitting Half Yearly Returns
- Collection and deposition of LWF contribution
- Replying show cause and demand notices.
- Preparation and maintenance of various registers (Register of Wages, Register of Fine, Register of unclaimed wages etc.)
- Assistance during inspection and inquiries
Shops and Commercial Establishments Act (of respective States)
The Shops and Commercial Establishments Act(s) of the respective States generally contain provisions relating to registration of an establishment, working hours, overtime, leave, privilege leave, notice pay, working conditions for women employees, etc. The provisions of the Shops and Commercial Establishments Act apply to both white collar and blue-collar employees. IT and IT-enabled services have been given relaxations by various State Governments in respect of the observance of certain provisions of their respective Shops and Commercial Establishments Act.
We offer below services
- Application & obtain Shops & Establishment registration
- Renewal of Shops and Establishment license
- Timely updation and proper Guidelines, if any changes in Act or Rules
- Assistance to establishments in complying various monthly compliance under the Act
Contract Labour (Regulation & Abolition) Act, 1970
The main objectives of the Contract Labour (Regulations & Abolition) Act, 1970 (the Contract Labour Act) are: (i) to prohibit the employment of contract labour; and (ii) to regulate the working conditions of the contract labour, wherever such employment is not prohibited.The Act defines a "worker" as a workman who shall be deemed to be employed as "contract labour" in or in connection with the work of an establishment when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer.The Contract Labour Act regulates the employment of contract labour in certain establishments and provides for its abolition in certain circumstances. It applies to every establishment or contractor wherein/with whom 20 or more workmen are employed or were employed on any day of the preceding twelve months as contract labour.
We offer below services
- Principle employer registration
- Contract Labour License registration
- Renewal of Labour License
- Amendment in RC
- Maintaining Form II, OT, advance, deduction, salary registers
- Compliance audit of Contractors
- Timely updation and proper guidelines, if any changes in Act or Rules
Payment of Gratuity Act, 1972
The Payment of Gratuity Act, 1972 (the Gratuity Act) applies to (i) every factory, mine, oilfield, plantation, port and railway company; (ii) every shop or establishment within the meaning of any law, for the time being in force, in relation to shops and establishments in a State, in which 10 or more persons are employed or were employed on any day of the preceding twelve months; and (iii) such other establishments or classes of establishments, in which 10 or more persons are employed or were employed on any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf.
Every employee, who has completed continuous service of five years or more, irrespective of his wages, is entitled to receive gratuity upon termination of his employment, on account of (i) superannuation; or (ii) retirement; or (iii) death or disablement due to accident or disease. However, the completion of continuous service of five years shall not be necessary where the termination of employment of any employee is due to death or disablement.
We offer below services
- We consult establishments for investments to cover gratuity liability.
- Assisting & validating the gratuity calculations while full and final settlement of employee.
- Maintaining registers
- Timely guidelines, if any changes in Act or Rules
Payment of Bonus Act, 1965
The Payment of Bonus Act, 1965 (the "Bonus Act") provides for the payment of bonus to persons employed in certain establishments in India either on the basis of profits or on the basis of production or productivity and is applicable to every establishment in which 20 or more persons are employed and to all employees drawing a remuneration of less than Rs 10,000. Those employees who have worked for less than thirty days are not eligible to receive bonus under the Bonus Act. The Bonus Act provides for the payment of bonus between 8.33% (minimum) to 20% (maximum). However, for the calculation of bonus, a maximum salary of Rs 3,500 is considered.
We offer below services
- Annual return filing
- Bonus register maintenance
- Availing bonus payment exemption
- Bonus Payput
- Timely guidelines, if any changes in Act or Rules
Minimum Wages Act, 1948
The Minimum Wages Act, 1948 (the Minimum Wages Act) provides for fixing of minimum rates of wages in certain employments. The minimum wages are prescribed by States through notifications in the State's Gazette under the Minimum Wages Rules of the specific State
In terms of the provisions of the Minimum Wages Act, an employee means (i) any person who is employed for hire or reward to do any work, skilled or unskilled manual or clerical, in a scheduled employment in respect of which minimum rates of wages have been fixed; (ii) an outworker, to whom any articles or materials are given out by another person to be made up, cleaned, washed, altered, ornamented, finished, repaired, adapted or otherwise processed for sale for the purposes of the trade or business of that other person; and (iii) an employee declared to be an employee by the appropriate Government.
The term "wages" has been defined to mean all remuneration capable of being expressed in terms of money which would, if the terms of the contract of employment express or implied were fulfilled, be payable to a person employed in respect of his employment or work done in such an employment and includes house rent allowance but does not include:
- The value of:
(a) Any house accommodation or supply of light, water and medical attendance; or (b) Any other amenity or any service excluded by general or special order of the appropriate Government;
- Any contribution paid by the employer to any personal fund or provident fund or under any scheme of social insurance;
- Any travelling allowance or the value of any travelling concession;
- Any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or
- Any gratuity payable on discharge.
Further, the Minimum Wages Act requires the employer to pay to every employee engaged in schedule employment wages at a rate not less than minimum rates of wages as fixed by a notification without any deduction (other than prescribed deductions, if any).
Payment of Wages Act, 1936
The Payment of Wages Act, 1936 (the Payment of Wages Act) is an Act to regulate the payment of wages to certain classes of employed persons. The Payment of Wages Act seeks to ensure that the employers make a timely payment of wages to the employees working in the establishments and to prevent unauthorized deductions from the wages
According to the Payment of Wages Act, all wages shall be in current coin or currency notes or in both. It is, however, provided that the employer may, after obtaining the written authorisation of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account
The Factories Act, 1948
The Factories Act, 1948 (the Factories Act) lays down provisions for the health, safety, welfare and service conditions of workmen working in factories. It contains provisions for working hours of adults, employment of young persons, leaves, overtime, etc. It applies to all factories employing more than 10 people and working with the aid of power, or employing 20 people and working without the aid of power. It covers all workers employed in the factory premises or precincts directly or through an agency including a contractor, involved in any manufacture. Some provisions of the Act may vary according to the nature of work of the establishment.
The Employee's Compensation Act, 1923 (formally known as "The Workmen Compensation Act, 1923")
The Employee's Compensation Act, 1923 (the EC Act) aims to provide financial protection to workmen and their dependents in case of any accidental injury arising out of or in course of employment and causing either death or disablement of the worker by means of compensation.
This Act applies to factories, mines, docks, construction establishments, plantations, oilfields and other establishments listed in Schedules II and III of the said Act, but excludes establishments covered by the ESI Act.
The Act provides for payment of compensation by the employer to the employees covered under this Act for injury caused by accident. Generally, companies take insurance policies to cover their liability under the EC Act.
Equal Remuneration Act, 1976
The Equal Remuneration Act, 1976 provides for the payment of equal remuneration to men and women workers for the same work and prevents discrimination, on the ground of sex, against women in the matter of employment, recruitment and for matters connected therewith or incidental thereto. This Act applies to virtually every kind of establishment.
Maternity Benefit Act, 1961
The Maternity Benefit Act, 1961 (Maternity Benefit Act) regulates the employment of women in certain establishments for a certain period before and after childbirth and provides for maternity benefits and certain other benefits including maternity leave, wages, bonus, nursing breaks, etc, to women employees.
The Maternity Benefit Act, 1961 applies to (a) a factory, mine or plantation including any such establishment belonging to Government and to every establishment wherein persons are employed for the exhibition of equestrian, acrobatic and other performances; (b) every shops or establishments within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed on any day of the preceding 12 months.
Under the Maternity Benefit Act, an employer has to give paid leave to a woman worker for six weeks immediately following the day of her delivery or miscarriage and two weeks following a tubectomy operation. The maximum period for which a woman shall be entitled to maternity benefit shall be 12 weeks, of which not more than six weeks shall precede the date of her expected delivery.
A pregnant woman is also entitled to request her employer not to give her work of arduous nature or which involves long hours of standing, etc, during the period of one month immediately preceding the date of her expected delivery or any period during the said period of six weeks for which the woman does not avail leave of absence. When a woman absents herself from work in accordance with the provisions of the Maternity Benefit Act, it shall be unlawful for her employer to discharge or dismiss her during or on account of such absence.
Child Labour (Prohibition & Regulation) Act, 1986
The Constitution of India incorporates provisions to secure labour protection to children. It expressly prohibits the employment of a child below the age of 14 years in work in any factory or mine or engagement in any other hazardous employment.
The policy of the Government is to ban the employment of children below the age of 14 years in factories, mines and hazardous employments and to regulate the working condition of children in other industries.
The Government enacted the Child Labour (Prohibition & Regulation) Act, 1986 (the Child Labour Prohibition & Regulation Act), which prohibits the employment of children who have not completed their 14th year in 16 occupations and 65 processes1 like cinder picking, cleaning of ash pits, building operation, manufacturing or handling of pesticides and insecticides, and manufacturing of matches, explosives, fireworks, etc.
In addition, the Child Labour Prohibition & Regulation Act regulates the working conditions of children in all employments, which are not prohibited under the Act. It also fixes the number of hours and the period of work and requires the occupiers of establishments employing children to give notice to the local inspector and maintain the prescribed register.
The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 ("POSH Act") was enacted as a comprehensive legislation to provide a safe, secure and enabling environment, free from sexual harassment to every woman. This statute was enacted to fill the legislative void which had been partially addressed by the judiciary in Vishaka and Others v. State of Rajasthan and Others (1997 (7) SCC 323). In this seminal public interest litigation verdict, the Supreme Court of India had framed a set of guidelines ("Vishaka Guidelines") for dealing with instances of sexual harassment at the workplace, which has now been codified in the POSH Act.
Under the POSH Act, an employer is legally required to comply with certain statutory requirements. One of these is the constitution of an Internal Complaints Committee ("ICC"), a body envisaged to receive complaints on sexual harassment at the workplace from an aggrieved woman, as well as to inquire into and make recommendations to the employer on the action required pursuant to its inquiry of such complaint made.