Labour Law Compliances

The Corporate Sector is obliged to follow some mandatory rules and regulations made for the labour class. These set of rules and guidelines are based on the rights and the constitutional duties of employers specified in the Concurrent List of the Constitution. The Concurrent list specifically mentions for the need of forming a regulatory setup for labour class especially for dealing with Industrial and labour disputes and matters related to social security & insurance, employment, workmen compensation, condition of work, old age pension, maternity benefits etc. With origin from the core document of nation, labour matters are dealt with more seriousness and strength by the government through these labour legislations.

Presently, there are certain legislations guiding for rights, duties and powers to the labour class. The view expressed in favour of these legislations led to continuous improvements and stress on their compliance by the corporate sector. Small establishments to big corporates employing a number of persons, within these legislations have to prepare records, registers and file returns.

Here’s a glimpse of labour law compliances which some specific entities as mentioned in respective laws have to mandatory follow.

Compliances based on Applicability of Laws

  1. The Factories Act, 1949
  • The act applies to a factory establishment hiring 10 or more workers, and if not using power, employing 20 or more workers.
  • The act prescribes for filling of an Annual Return (Form 21) before 15th January of every year and half-yearly return (Form 22) before 15th July and 15th January of each year.
  • Approval for the factory is to be taken from the State Government or Chief Inspector of the State.
  1. The Employee State Insurance Act, 1948
  • Applies to all factories and establishments with 10 or more workers except where the establishment is engaged in the Construction Sector.
  • The Act prescribes for a compulsory contribution of the employer to the Insurance fund of about 3 to 4% of the wage amount and files a return for the same in Form – 5.
  • The employer to maintain a register of the employees and file it using Form – 6 and particulars of the claims using Form – 11
  • To report the insurance claims to the respective officer using Form – 12.
  1. The Minimum Wages Act, 1948
  • The act prescribes for minimum wage rates, minimum working hours to apply for whole India.
  • Every employer shall have to file an annual return with abstracts of wages paid, employees working etc using Form –III.
  1. The Payment of Wages Act, 1936
  • The Act extends to the whole of India and aims to eliminate malpractices of employers by laying down definitive guidelines for payment of wages without making unauthorised deductions.
  • Statutory registers of the employees are to be maintained with all particulars of wages paid, pending and advances.
  1. The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal)Act, 2013.
  • The act applies in situations where there is an aggrieved woman who alleges to have been subjected to sexual abuse at the workplace, where being an employee of that place or not.
  • The employer to set up an Internal Complaint Committee for such incidences mandatorily in an establishment where 10 or more workers are hired.
  • An annual report of all offences of such kind reported in the entity is to be formed and is to be submitted to the District Officer.
  1. The Payment of Bonus Act, 1965
  • The Act applies to every factory on which the Factories Act,1948 is applicable and on establishments with 20 or more workers.
  • Registers for grant of the bonus have to be maintained by the employer.
  1. The Payment of Gratuity Act, 1972 :
  1. The Employee Provident Fund and Miscellaneous Provisions Act, 1952
  • The Act extends to the whole of India and is applicable to all establishments with 20 or more employees.
  • The employer is required to file returns in prescribed forms or using Form 5/10/12A/3A or 6A for provident contributions declared or made.
During Every Month/ Year Name of the act Event Form No.
Within 15 Days of commencement/ completion of each contract Contract Labour (Regulation &Abolition) Act, 1970 Return/Notice within 15 days of commencement/ completion of each contract by the Principal employer Form VI-B
Within 15 Days of commencement/completion of contract work Contract Labour (Regulation &Abolition) Act, 1970 Notice of commencement/ completion of contract work by the Contractor within 15 days Form VI-A
February 15 Building and Other Construction Workers (Regulation of Employment and Condition of Services) Act & the Rules, 1966 Annual Return in duplicate. Form XXV
Within 30 Days from due dates Employment Exchanges (CNV) Act,1959 & Rules Quarterly Return for the respective quarter Form ER-1
Within 30 Days from due dates Employment Exchanges (CNV) Act,1959 & Rules Biennial returns within 30 days of the due date as notified in the official gazette ER-II
Within 30 Days of applicability of the Act & any change Payment of Gratuity Rules Notice of applicability of the Act & any change Form A or B
Jan. 15 Factories Act,1948 Annual Returns Form as prescribed in State Rules
Jan. 21 Maternity Benefit Act, 1961 Annual returns & details of payment ending 31st Dec Forms L, M, N, & O
Jan. 31 Employees’ State Insurance Act, 1948 Annual information about factory/ establishment covered Form 01A
Feb. 1 Minimum Wages Act, 1948 Annual Return Form – III
July 15 & January 15 Factories Act, 1948 Half Yearly Return Form as prescribed in state rules
Dec. 30 PaymentofBonusAct,1965& Rules Annual Return, within 30 days after the expiry of 8 months from the close of the accounting year Form D
Jan. 31 Sexual Harassment of Women at Workplace(P, P&R) Act, 2013 AnnualReturn, in such form and at such time as may be prescribed As may be prescribed


Above is an inclusive list of some labour law compliances which entities have to abide. Being Ignorant to these compliances can even result in permanent shut of business.

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