Understanding Statutory Compliance in India
In India, one has to ensure that the company's payroll is compliant with the required laws and regulations.
Adhering to rules & regulations of the state in which the business is established is known as Statutory Compliance. These cover all the labor and taxation laws of the state. In India, your need to adhere to both national and state-level laws mandatorily. Thus, a company has to be well versed with all statutory labor regulations in India.
Last year (2020), the Indian Parliament combined 25 labour laws into three codes, i.e., the Social Security Code, the Code on Industrial Relations and the Code on Occupational Safety, Health and Working Conditions. The Code on Wages, enacted in 2019, also amalgamated four relevant labour laws. The Four new Labour Codes were supposed to be effective from 01 April 2021, however considering the rise in COVID cases and the potential impact of the new Codes on per employee costs for enterprises, the Government has delayed implementation of new Codes to a future date. The Central and State Governments have yet to notify the rules. The new legal provisions will be effective only, once notified.
Statutory Rules
The various Laws Applicable within India across different sectors can be categorised as shown below
| Social Security | Wages | Industrial Relations | Benefits for Women |
|---|---|---|---|
| Employee Provident Fund | Payment of Wages | Industrial Dispute | Equal Remuneration |
| Labour Welfare | Minimum Wages | Industrial Employment (Standing Orders) | Maternity Benefit |
| Employee State Insurance | Bonus Payment | Shops and Establishment Act | |
| Payment of Gratuity | Equal Remuneration | Trade Union Act | |
| The Factories Act |
We have provided you wish brief information on the above acts for your reference in the various subtopics within our knowledge center
In case you are interested to understand the laws in detail, you can view the specific laws from here
Major Laws Applicable in India
The Key laws one needs to be aware within India are:
You can visit here (opens in a new tab) for a more comprehensive understanding of the various welfare schemes applicable within India