What are the applicable Labour Laws in HR (Human Resource)?

Applicable Labour Laws in HR (Human Resource)

In every company, there is a requirement for the Human Resource (HR) department to follow various Labour legislations. It is necessary to acquire proper knowledge about Labour Laws in HR such that right legal, ethical, and efficient functioning of the workplace is maintained. The legislations govern the way companies hire, employ, and compensate employees—aligning worker rights and employer responsibilities.

Why Labour Laws in HR Matter

Labour Laws in HR establishes the law foundation of employer-employee relationship. It requires employees to be treated equally, prescribes guidelines for employment term management, and establishes mechanisms for settling labour disputes. Disobedience of such laws would result in monetary fines, loss of reputation, and potential lawsuits.

For HR professionals, awareness and compliance is not an option—it's their business. From payroll processing, having a healthy workplace, to grievances, compliance with labour laws is mandatory at every step of the employee life cycle.

Relevant Key Labour Laws in HR

1. The Industrial Disputes Act, 1947
• This law provides a structured legal process of resolving and inquiring into industrial disputes. HR should ensure there are adequate grievance redressal mechanisms to prevent disputes becoming legal ones.
2. The Factories Act, 1948
• The act provides for the health, safety, and welfare of workers employed in factories. HR ensures safety measures are put in place and proper working conditions are available.
3. The Shops and Establishments Act (State-wise)
• Applicable for offices and business, the Act regulates opening and closing hours, rest breaks, working hours, and work information. HR can be expected to ensure compliance of company policy with this Act.
4. The Contract Labour (Regulation & Abolition) Act, 1970
• Mandatory in establishments with 20 or more contract laborers. HR has to manage registration, licensing, and compliance under the contract labor jurisdiction.
5. The Payment of Wages Act, 1936
• Makes sure all payments are complete and on time, without any unauthorized cuts. HR will keep an eye on payroll daily to follow all rules.
6. The Minimum Wages Act, 1948
• This makes sure employees get at least the minimum wage set by the government. HR should regularly check salary levels to keep them in line with central and state laws.
7. The Payment of Bonus Act, 1965
• This act mandates payment of bonuses to the workers whose compensation is less than a certain amount. HR will need to maintain payroll records so they can adhere to this act.
8. The Payment of Gratuity Act, 1972
• HR must make sure employees who have been here for at least five years get their gratuity.
9. The Employees' Provident Funds and Miscellaneous Provisions Act, 1952
• Both employee and employer must contribute to a retirement saving scheme. HR must enroll qualified employees and deduct the monthly contribution.
10. Employees' State Insurance Act, 1948
• This Act offers health benefits to workers whose wages are below a certain salary level. HR must ensure that all such workers are covered and the company contribute accordingly.
11. The Maternity Benefit Act, 1961
• This act grants paid maternity leave and protection of employment to pregnant women workers. HR should ensure compliance and keep records of such leave in proper sequence.
12. The Equal Remuneration Act, 1976
• HR needs to make sure that men and women get paid the same for doing the same work, regardless of gender.
13. The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act)
• Imposes safe work environment and constitution of Internal Complaints Committees.
14. The Apprentices Act, 1961
• Enforces apprentice training in particular trades.
15. The Child and Adolescent Labour (Prohibition and Regulation) Act, 1986
• Prohibits child labor and controls adolescent working conditions.



Role of HR in Compliance of Labour Laws

The HR department is the backbone of labour law compliance. Some of the most important activities are:

• Policy making in accordance with existing labour legislations
• Orientation programs for creating awareness
• Maintaining statutory registers and records
• Management of employee onboarding and exit procedure
• Grievance redressal and resolution of disputes
• Ensuring equal opportunity, safety, and welfare.



How SKMC Global Can Help

• Labour Law Compliance Audit: We spot possible risks of non-compliance from your current practices.
• Tailor-made HR Policy Drafting: We help in the formulation of company policies as per prevailing labor legislation.
• Statutory & Payroll Assistance: We deal with PF, ESI, gratuity, bonus, and all payroll-based compliance.
• Periodic Legal Updates: We update your HR department on changes and new developments in labor legislation.
• Training & Advisory: We offer training to HR professionals on legal management of disputes, employee rights, and sensitive matters such as workplace harassment.