Labour Law Compliance Checklist
Labour Law Compliance Checklist for Businesses in India
In this post, we will talk about the basic labour law rules that every business in India should follow. We have also made a simple checklist to help you stay updated in 2025. Following these rules not only saves you from legal trouble but also helps in creating a safe and happy place for your workers.
Let’s look at each section in detail:
What is Labour Law Compliance in India?
Labour law compliance simply means following the rules made by the government to treat workers fairly and run businesses smoothly. In India, these rules cover things like:
- Paying minimum wages, giving salaries on time, and distributing bonuses.
- Putting money regularly into PF and ESI for employees.
- Giving safe and clean working conditions.
- Making sure there is no discrimination or harassment at work.
For companies, following these laws helps them stay away from legal trouble, avoid fines, and build a good name in the market.
Importance of Labour Laws
Labour laws are important for various reasons, such as:
- Maintain healthy industrial relations between employer and employee
- Protect workers from exploitation by employers and management.
- Helps workers get fair wages and benefits.
- Avoid labour unrest
- Promote a healthy working environment
- A favourable working and rest time for workers.
- Provide compensation for victims of accident workers.
- Ensure job security for employee
- Reduce conflict and strikes.
Compliance Under Labour and Employment
- Necessary to provide a safe and healthy working environment that protects employees from potential harm, including any threats from individuals who may come into contact with the workplace.
- It is essential to establish explicit policies to prevent sexual harassment in the workplace, where guidelines should be clearly and concisely communicated to all employees and enforced consistently to create a safe and respectful environment for everyone.
- When an organization employs more than 10 people, it must establish an Internal Complaints Committee under the Sexual Harassment for Women at Workplace Act.
- It is important to ensure that your employee is working in healthy, sanitary and safe conditions.
- Creating and implementing equal opportunity policies for all individuals, regardless of their gender, caste, religion or others.
- Show abstract of the Payment of Gratuity Act and the Maternity Benefit Act.
- Create a policy for data protection and implement it.
- Whenever needed, conduct awareness and workshop programmes.
- Employers should provide the basic needs and facilities to their employees, such as restrooms and first aid kits.
Labour Law Compliance Checklist
Labour law compliance checklist is a detailed and comprehensive guideline to ensure everything runs smoothly when completing a task or procedure. Below is a checklist to comply with various labour laws.
1. Industrial Employment and Standing Order Act, 1946
- Create service rules and seek approval from the relevant labour authority.
- To ensure compliance, follow the laws and regulations for employment termination, disciplinary procedures, Grievance redressal and other employment-related matters.
- Display the standing orders in a noticeable location to ensure all workers are aware of them.
2. Contract Labour (Regulation and Abolition) Act, 1970
- Ensure that you comply with provisions related to the engagement of contract labour.
- Must register and obtain licenses for engaging contract labour, if applicable.
- Ensure working conditions of workers.
- Aducate facilities such as pure drinking water, canteen, sanitary for female and male workers.
- Return submission
3. Employees' Provident Funds and Miscellaneous Provisions Act, 1952
- Enroll eligible employees for PF and make regular contributions towards their PF accounts.
- Monthly file your PF returns and maintain records of those contributions.
- Employers who have more than 20 employees need to register under EPF.
- Make the contributions within 15 days of the month’s end.
4. Employees' State Insurance Act, 1948
- Enroll all your eligible employees for the ESI scheme and make regular contributions towards employee’s ESI accounts.
- Periodically file ESI returns and maintain records of contributions.
- Employers who have more than 10 employees need to register with the ESI.
- Monthly contribution within 15 days of the month’s end.
5. Factories Act, 1948
- Ensure health, safety, and welfare provisions within the factory premises, such as creche facilities, canteens, restrooms and others for the workers./li>
- Obtain the necessary licenses and approvals for your factory operations.
- Returns submission
- Maintain register
- Payment of wages as per the act
- Payment of overtime wages for workers.
6. Minimum Wages Act, 1948
- Make sure that minimum wages are paid in accordance with rates, which are notified by the State Government.
- Maintain records of wages, including overtime, deductions, and allowances. And ensure that all the information is updated.
- Returns submission.
7. Payment of Wages Act, 1936
- Timely payment of wages to employees without any unauthorized deduction.
- Must maintain records of deduction, wages, advance and others.
- Annual return submission.
8. Equal Remuneration Act, 1976
- Equal pay for equal work, irrespective of gender, caste, or religion.
- Avoid discrimination in remuneration based on gender and religion.
- Must maintain registers.
9. Payment of Bonus Act, 1965
- Must pay annual bonus to the eligible employees in accordance with the provisions of the Act.
- Necessary to maintain records.
- Return submission.
10. Payment of Gratuity Act, 1972
- Provide a gratuity payment to employees who have completed five years of their service, retired, died or resigned.
- Must maintain the records.
- Opening notice to concerned labour authority
- Maintain a register for bonus, surplus and others.
11. Maternity Benefit Act, 1961
- Provide leaves to all eligible female employees, including paid maternity leave, abortion or any other related problem.
- Ensure compliance with provisions that are related to maternity leave, nursing breaks and others.
- Return submission.
12. Working Hours and Leave Policies
- Necessary to maintain records of working hours, overtime and half days.
- Offers statutory leave benefits such as annual leave, sick leave, and casual leave.
13. Industrial Disputes Act, 1947
- Preventing unfair labour law practice.
- Mandatory to take permission from the government or labor authority before laying off workers or closing an industrial establishment.
- Ensure compensation payments to the workers during company closure, layoff, or retrenchment.
Common Challenges in Labour Law Compliance
1.Frequent Changes in Rules
Labour laws keep changing now and then. Like, the new wage codes; they mean we have to update our payroll systems and even the way we make offer letters or contracts.
2.Different Rules in Different States
Each state has its own rules. So, if a company is working in many states, it becomes tough to follow everything properly in all places.
3.Not Enough People to Handle Compliance
Smaller companies usually don’t have a separate team for compliance. Because of this, they may miss some important updates or rules.
How to Deal With These Issues:
- Use good compliance tools – they give you reminders and updates on time.
- Talk to legal experts who understand state-wise rules.
- Train your HR and admin staff regularly so they know what’s new and what’s required.
Conclusion
Staying on top of statutory compliance in 2025 is very important for your company’s smooth running. With this updated checklist, you can make sure your business is following all the rules properly. It’s not just about avoiding fines, good compliance builds trust, keeps your employees happy, and helps your business grow stronger.
So, are you ready to make compliance your strength in 2025? Use this checklist and take your business in the right direction.
By that we conclude this post. Please use the space below to ask questions or comment; we will gladly respond.
