Contract Labour Laws Compliances

As the name suggests, Labour laws are basically a set of compliances that set a routine or way in which the labour force must be treated at a workplace. As it is a known fact that Labour is what makes up an organisation and is an asset to it and that is why to ensure the protection of their rights and to safeguard them from any misuse, labour laws are applied. These laws ensure that companies, workers and trade unions follow regulations. Failure to abide by these compliances with the laws may lead to strict actions towards the organisation. All the Labour Laws are generally imposed by the State and the Central Government. By labour law compliances, it is not meant just to file the returns, but such returns and records prove to be evidence that the laws have been complied and hence must be provided to the authorities in case there are any discrepancies.

Further, some laws are meant to be enforced only for specified work environments whereas some laws are enforceable to all the organisations. Moreover, all labour laws are generally employment-based and some are usually organization based. In case there is some non-compliance that exists, the respective organisation will be liable to fines, penalties, lawsuits, credibility loss, contract breach, and possibly, closure of the business.

What All Compliances Are Applicable?

When you are the principal employer or head of the organization you may surely be taking services from contract based employees such as housekeeping, security staff, or guards, cafeteria personnel, cleaning staff etc.

According to the law it is required that the compliance related to the salaries and benefits of all employees working at your premise - regardless if they are direct or indirect - be protected at all times. Thus, the responsibility of complying by the law of all the direct, indirect or contract based employees holds on with you.

As stated by the law, an employer with 20 employees needs to make sure that a registered certificate is obtained under the Contract Labour Act. The later statement is the basic premise of the Act. The Contract Labour Act mentions all the employee benefits, such as drinking water, sanitized urinals, etc., and instructs the maintenance of a register. In case the employer fails to meet the stated number of employees, then all records under the Minimum Wages Act are supposed to be maintained.

Similarly, for employees drawing salaries less than Rs.15000, the respective PF deductions are supposed to be made for them. These deductions are applicable to both direct as well as indirect and contract employees. In fact, even if you have employed a few indirect employees who make the total count of employees to over 20, there is still a need to register PF Act and make sure that compliance is intact.

If the total number of employees at your organization who draw a gross salary of approximately Rs.21000 is over 20, then the Employee State Insurance Act applies. For factories, the total headcount is 10. Also, it is the responsibility of the employer to make sure that all contract based employees acquire an ESI card. Employers are also responsible to ensure payment of minimum wages to the employees only in the form of bank transfers (on or before the 7th of every month) or a cheque (before the 7th of every month). In addition to this, employers also have the responsibility of ensuring that the contractor has filled up Form C and Form D in accordance with the Bonus Act. Overall, every compliance related to gratuity has to be maintained and managed by the employer.

Why choose Yash Consultant?

engaging, deploying and managing employees at your business is altogether a dreary job to handle. Opting for a third party service for managing employees and their rights is a win-win solution for everyone including employer, employees and contractor as well. With pioneering in engagement and regulation involving the blue-collared corporate workforce, we aim to provide the best. We make sure that all concerns related to minimum wages, contributions due under ESI, PF and LWF etc are being resolved in time and with least effort.

Granting rightful wages and medical advantages help make the lives of the contract workmen and their families better so it is necessary that contract labour law compliances are abided by while generating employee payroll. And to handle such great responsibility Yash consultant is your helping hand to make sure no minute detail goes overlooked. Here are some ways Yash

Consultant services help you with Contract Labour Laws compliances:

Ensuring procurement of a registered certificate that comes under the Contract Labour Act
Ensuring registration under the PF and ESI acts
On-time payment of salaries, wages, bonus, perks, leave wages, gratuity etc. to employees/labour employed on contract basis
Efficient maintenance of records & registers according to the Minimum Wages acts
Hassle free environment in engaging contract workforce
Expert consultation for decision making
Help in registrations of Fresh / Renewals / Amendments under the Act.
Handling Licenses – Fresh / Renewals / Amendments.
Remittances of ESI, EPF & LWF contributions for contract workers.
Accident related compliance for contract workers.
Assistance at the time of inspections.
Vendor Monthly Bill Verification Process for all Labour Law Compliances applicable to the contractor and required at the time of inspections.