Menu
Corporate Support Services

Home / Services  / Corporate Support Services  / Labour Law Compliance and POSH Act

Labour Law Compliance and POSH Act

Establishment /Labour Law Compliance:

Introduction:

Labour law is a set of Acts which are essential for businesses and organisations of all sizes and industries, which must comply with regulatory requirements and standards defined in the respective Acts. In other words, labour law is a set of rules, administrative decisions, and judgments that deal with the legal rights of people working and their organizations in general.

AKM Globalhas the proficiency to manage every step of Establishment/Labour Compliance which is applicable to Establishments across India.

Requirement & Benefits of Compliant Workplace:

How does Establishment Compliance/ Labour Law Impact any business?

Legal Requirements: EveryEstablishment should comply with labour law as per the instructions described in various labour act, it is the responsibility of every employer that the organisations meet its all-legal obligations.

Financial Requirement for Avoiding the losses: Non-compliance might result in financial penalties and fines, which can increase the cost of doing business. Establishment Compliance Services is a path which can help organisations avoid these penalties and fines by ensuring compliance with regulations.

Conservation of Organisation Reputation: Non-compliance can destroy the organisation's reputation. Conforming to compliance can help accumulate an organisation social reputation by distinguishing and reducing areas of risk.

Provides a Safe & Productive Work environment to Employees: InLabour Law there is mandatory rules and regulations outlined which help to provide the healthy, safe & rightful workplace to the employees which also enhances the productivity of the business.

Establishment /Labour Law Compliance:

  • Establishment Compliance
  • Payroll Compliance
  • Factory Compliance

A. Establishment Compliance Covered: We have subject matter expertise with Pan-India presence for obtaining New Registration, Amendment & Renewal of the Existing Certificate and for Preparing, Maintaining & Submitting the Statutory Registers, Records and return under below listed act.

  • The Shop & Commercial Establishment Act (State Specific)
  • The Payment of Wages Act.1936
  • The Minimum Wages Act,1948
  • The Payment of Gratuity Act,1972
  • The Payment of Bonus Act,1965
  • The Employee Compensation Act,1923
  • The Maternity Benefits Act, 1961
  • The Employment Exchange Act,1959
  • The Equal Remuneration Act,1976
  • The Apprentices Act,1961
  • The Contract Labour (Regulation & Abolition) Act,1970

B. Payroll Compliance Covered: We have the knowledge with appropriate skills to prepare, maintain & submit statutory challan/remittance/labilities and ensure compliance of our clients with the Business Rules as explained below:

  • The Employees’ State Insurance Act, 1948
  • The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952
  • The Labour Welfare Fund Act, (State Specific)
  • The Professions, Trades, Callings & Employment Tax Act, (State Specific)

C. Factory Compliance Covered: Our familiarity with the subject assures that our client complies absolutely with every rule pertaining to the environment, health, and safety provided under the Factories Act, 1948.

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Suppression) Act, 2013 (POSH)

Introduction:

The POSH Act raised the bar for responsibility and accountability from the Vishaka Guidelines. The Supreme Court made workplaces, institutions, and people in charge responsible to protect working women's basic right to equality and dignity. This means to give women employees a safe and secure place to work.

Key definition of POSH:

The POSH act defined the complete portraying or behaviour which is considered unwelcome sexual harassment of a sexual nature, verbal, physical or visual, that is :

  • Demanding or requesting for any sexual approach.
  • Ensuring special treatment in exchange of sexual favour.
  • Threatening an employee for refusing a sexual advance.
  • Any other act which may be part of an unwelcome sexual request.

Role & Responsibilities of Employer:

  • Implementation of the POSH policy at the workplace, with examples.
  • Displaying the employees’ rights and employer obligations under POSH act.
  • Displaying Internal Complaint Committee Member’s details on company notice board.
  • Providing training & awareness programmes on regular interval to the employees.
  • Taking quick and appropriate action if any complaint is received under this act.
  • Submission of the Annual report to the appropriate authority.

Penalty for non-compliance with provisions of Act: - Where the employer fails to comply with the POSH act, this is punishable offence and appropriate authority will imposed the fine which may extend to INR 50,000/- and continuity of non-compliance is the subject to extension of punishment by the appropriate authority.

Challenges in Compliance and How AKM Global can help to Overcome Them:

  • Complexity of laws, frequent updates & Lack of awareness: Labour laws are becoming increasingly complex, making it difficult for businesses to complete all the legal acquiescence required to stay compliant to the laws and regulations and Repeatedly department has doing amendments to enhance the existing act’s such changes are road blocker to develop the business because understanding and interpretation of these act is difficult.
  • AKM Global Compliance Management Solution include Compliance Automation Platform supported by a front-end team of experts and shared service centre. The unique combinations help you manage the compliance efficiently and cost effectively.

“New Labour Code For New India will be implemented shorlty”

Introduction

Workforce empowerment is essential for a strong, prosperous and self-reliant India. Even after 73 years of independence, almost 90% of workers work in the informal sector without access to full social security. The total number of workers in the organized and informal sectors exceeded 500 million. For the first time, a government looked after workers and their families in both the formal and informal sectors. In the past, the labor movement had been involved in the implementation of several labor laws. The central government has made significant changes in the right direction to give them real autonomy. To this end, the central government has taken the historic step of codifying 29 laws into 4 laws, so that employees can easily access dignity, health and other welfare measures.

The Four New Labour Codes are:

  • Social Security Code 2020: A law to change and put in place rules about social security. It aims to give social security to workers in organized, unorganized, or other sectors. It also deals with related matters.
  • Occupational Safety, Health and Working Conditions 2020: A law to combine and update rules that control job safety, health, and work conditions for people employed in a business. It also covers related or linked issues.
  • Industrial Relations 2020: A law to merge and update rules about Trade Unions, work conditions in industrial businesses looking into and solving industrial fights. It also handles related or connected matters.
  • Code of Wage: A law to update and bring together rules about wages and bonus. It also deals with linked or related issues.

FAQs

In India labour law has been segregated into various categorise as follows:

Industrial Relationship, Safety & Health, Child & Women Development, Social Security, Wages, Labour Welfare and Employment.

Below are the basic labour & employment laws that are mandatory to follow by every establishment as per their applicability.

  • The Shop & Commercial Establishment Act (State Specific)
  • The Factories Act, 1948
  • The Payment of Wages Act.1936
  • The Minimum Wages Act,1948
  • The Payment of Gratuity Act,1972
  • The Payment of Bonus Act,1965
  • The Employee Compensation Act,1923
  • The Maternity Benefits Act, 1961
  • The Employment Exchange Act,1959
  • The Equal Remuneration Act,1976
  • The Apprentices Act,1961
  • The Contract Labour (Regulation & Abolition) Act,1970
  • Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

These laws empower the employees and ensures that their rights are protected and regulates the working condition in the factory/establishment or company.

An Act to provide the protection of women employees against the sexual harassment at their workplace and give the fundamental rights to life and live with dignity.

Every employer shall be liable to provide the safe working environment at the workplace and treat sexual harassment as misconduct.

It is the responsibility of the employer that every employee should be aware about POSH policy and Internal complaint committee members. Organise workshops and awareness programmes at regular intervals.

In every labour and employment act, there is provision of punishment and fine in case of company leads toward for non-compliance.