Labour Law Compliance Checklist 2019

March 1, 2019

Labour Law compliance checklist is nothing but a set of standard terms or conditions of employment. It may refer to several regulatory compliances including minimum wages act, work men’s compensation act, contract labor act, factories act, etc. For carrying out business, companies are required to meet statutory compliance requirements. There are various laws and acts that a business needs to follow. Failure to comply with the regulations may lead to punitive action from the concerned authorities. There are central laws, and there are state laws with which a business must comply.

Labour Law Checklist

It is suitable for every business organization to have a labour law compliance checklist so that they can tick on each item on the list every month by a person assigned for the task. It is also advisable to use HR automation software to ensure compliance. The checklist should be according to the sphere of operation of the companies. Here is a list of labour law compliance checklist.

The Building and Other Construction Workers Act, 1996, Form 1 to be submitted 30 days before the commencement of work.

The Building and Other Construction Workers Welfare Cess Act, 1996 – a demand draft of 1% of the project cost to be submitted within 30 days of the completion of the project.

The factories Act 1948

1.    Form 1 with annexures to be completed on completion of the construction project

2.    Form 2 to be submitted on approval of factory building plans

3.    Form 1 on commencement of work

4.    Form VIB after work has started

5.    Form A & B to be submitted when construction begins

6.    The Employees’ provident fund & miscellaneous provisions act, 1952 – coverage proforma on commencement of work besides monthly deductions and form filling

7.    The employees’ state insurance corporations act – 1948 – Form 01 at the time of commencement of work.

There are a few other laws that also require the preparation of the Labor law compliance checklist.

These are mainly:

•    Shops and commercial Establishment Act

•    The Professional Tax Act

•    The Labor Welfare Fund Act

•    The Minimum Wages Act, 1948

•    The Payment of Bonus Act, 1965

•    The Payment of Gratuity Act, 1972

•    The Equal Remuneration Act, 1976

A calendar type of checklist is required to ensure proper compliance.

For Example,

•    TDS must be deducted and deposited by the 7th of every month followed by form ITNS281.

•    As for the Factories Act, returns must be filed by the 15th of every month, and EPF must be deposited by the 21st of every month.

•    ESI deductions and forms must be done by the 21st of the following month.

•    Quarterly Income Tax returns in form 24Q and form 27 need to be filled by 31st of applicable month or the quarter.

However, it should also be noted that it is not an easy task to keep track of all the necessary compliances, as certain acts and laws are applicable only in certain conditions, such as the number of employees or in certain pay limits.

HR staff must ensure that their checklist reflects the latest amendments and incorporate such changes in their filing and returns. There are specific dates on which deposits should be made and forms filed with the appropriate authorities. There must be monthly returns, quarterly returns or annual returns that need to be filed in time according to various acts and rules. Errors may result in penalties. One of the easiest and best ways is to outsource compliance with experts or use the right HR Service provider. Not all laws apply to all businesses. The HR should be aware, which rules apply to which company to prepare a calendar of the checklist and follow them rigorously for full compliance.

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