What are Statutory Compliance Services?
Statutory compliance refers to adhering to statutes and fulfilling the obligations put by them. There can be many state, national and international laws that a company has to observe to avoid punitive action.
Complying with these laws can be a demanding task for your company. It requires considerable time, cost, and manpower. Organizations that offer Statutory Compliance Services, with their knowledge and expertise, ensure that your business complies with laws and does not attract any punitive action for non-compliance.
Labour Law Compliance Checklist
Labour law is the diverse body of law that applies to matters such as employment, remuneration, conditions of work, trade unions, and industrial relations.
Labour Law compliance is adherence to these laws of employment. Labour laws may include minimum wages act, work men’s compensation act, contract act, factories act, etc.
A labour law compliance checklist is an easy way to ensure that your company/business is conforming to the labour laws. It is a checklist with all the labour laws written. An assigned person can tick on each item on the list every month. The checklist should be according to the sphere of operation of your company.
Comprehensive Coverage of Labor Laws
- Shops and Commercial Establishments Act (S&E)
- The Employees Provident Funds and Miscellaneous Provision Act, 1952 (EPF)
- The Employees State Insurance Corporation Act, 1948 (ESIC)
- The Professional Tax Act (PT), 1975
- The Labour Welfare Fund Act (LWF), 1965
- The Contract Labour (Regulation & Abolition) Act, 1970 (CLRA)
- The Child Labour (Prohibition & Regulation Act), 1986
- The Minimum Wages Act, 1948
- The Payment of Wages Act, 1936
- The Payment of Bonus Act, 1965
- The Maternity Benefit Act, 1961
- The Payment of Gratuity Act, 1972
- The Equal Remuneration Act, 1976
- The Industrial Establishment (N&FH) Act, 1963
- The Employment Exchange (Compulsory Notification of Vacancies) Act, 1959
- Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013
- The Employees Compensation Act, 1923
- The Industrial Employment (Standing Orders) ACT 1946 – Model Standing Order Only
- The Industrial Disputes Act, 1947
- The Apprentice Act, 1961
- The Interstate Migrant Workmen (Regulation of Employment and Conditions of Services) Act, 1979
- The Factories Act, 1948
- The Trade Unions Act, 1926
- Shops and Establishment Act
- Building and Other Construction Workers Act
- The Apprentices Act
- The Employment Exchanges (Compulsory Notification of Vacancies) Act
Benefits of Outsourcing Compliance
Reduce labour cost: Managing corporate statutory compliance is a considerably difficult task. It requires a substantial amount of expertise and manpower. Hiring, training and paying staff for statutory compliance is a costly affair. Statutory compliance service providers can provide greater efficiency and expertise with lower cost thus substantially reducing the labour cost of your company.
Quick implementation of new technology: High-grade outsourced organization will have the resources to instantly start new projects. When you handle the same project to the in-house team, it might take weeks or months as there would be a requirement to hire the right people, train all of them, and provide support to them. In most of the project's implementation, quality IT services will bring experience at the beginning that saves money and time.
Focus on your core business: You can focus on your core business without diverting the limited resources of your business on statutory compliance. Managers do not have to channel their attention and time from the core activities.
Greater efficiency: Outsourced organizations have trained professionals with more expertise who can work with greater efficiency. They have better development, research and resources to implement it.
Reduce risks: Investment in every business carries risk. Government regulations, competitions, markets, technologies, and financial conditions change very quickly. The company that provides outsourcing assumes and manages all these risks for you, along with the specific industry knowledge, especially compliance and security issues. They are better at making decisions to avoid these risks.
Scope of work involved in Compliance Services
HR Compliance Services: As your business grows it often becomes harder to effectively manage the growing the number of employees. Compliance is an ever-changing landscape that requires expert agility through. Human Resource Compliance Services keep up with the dynamic central and state employment laws to help your business thrive.
Payroll and Tax Compliances: A payroll tax is a tax that an employer withholds from an employee's salary and pays on behalf of his employees. The payroll tax is based on the wage or salary of the employee. Statutory compliance service providers can help your company to comply with payroll tax related laws.
Professional Tax Management: Professional tax is a tax on all kinds of professions, trades, and employment and levied based on the income of such profession, trade, and employment. It is levied on employees, a person carrying on the business including freelancers, professionals, etc., subject to income exceeding the monetary threshold if any. Get help to easily manage professional tax and comply with professional tax related laws.
Labour Welfare Fund Management: Labour welfare fund is a statutory contribution managed by individual state authorities. It is an aid in the form of money or necessities for those in need. It aims at helping labourers to improve their working conditions, provide social security, and raise their standard of living. Various state legislatures have enacted Labour Welfare Fund Act exclusively focusing on the welfare of the workers. It incorporates various services, benefits, and facilities offered to the employee by the employer. Such facilities are offered by the means of contribution from the employer and the employee. Labour Welfare Fund Management services help your company to ensure compliance to the Labour Welfare Fund Act.
ESIC Management: Employees' State Insurance (abbreviated as ESI) is a self-financing social security and health insurance scheme for workers in India. This fund is managed by the Employees' State Insurance Corporation (ESIC) according to rules and regulations stipulated in the ESI Act 1948. ESIC is an autonomous corporation by a statutory creation under the Ministry of Labour and Employment, Government of India. ESIC Management services help to manage your employees’ ESI.
Contract Labour Compliance (CLRA): Contract labour means those employees who are hired for a specific task and finite period. Housekeeping staff, security guards, cafeteria personnel, etc. are some examples. Your company as the principal employer has the responsibility to ensure statutory compliance with contract labour laws. Statutory compliance service providers help your company to ensure compliance with these laws and create a good working environment for the contract labours.