There are as many as one hundred and sixty five (165) labour legislations in India of which fifty (50) have been enacted by the Union/Central government and the rest by the State governments for their respective states. There is a further distinction in these legislations between workmen or blue collar employees and high paid employees or managerial employees. A large majority of these legislations apply only to blue collar employees. Managerial employees are majorly governed by the terms and conditions of their contracts of employment. That said, there are certain legislations like the state specific Shops & Establishment Acts, the centrally enacted The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, The Maternity Benefit Act, 1961 which are overarching in nature and cover both categories.
An indicative list of the compliance requirements having a universal character have been listed below.
- Shops and Establishments registrations in each of the concerned States for the opening of shops and establishments in such states.
- Employee’s Provident Fund registrations for making social security contributions to employees.
- The company would be required to execute offer letters, employment contracts or nondisclosure agreements with its employees that are equitable contracts and don’t impose conditions that are viewed by the courts in India as unnecessary and burdensome obligations on the employees.
- The company would be required to have in place a code of conduct/employee handbook, leave policy, sexual harassment policy amongst others.
- The company needs to put in place processes governing how the company deals with whistleblowers, acts of misconduct and/or sexual harassment and the investigations related to such disclosures or reported incidents.
- The company needs to maintain registers, records and file periodic returns as prescribed.
- The company needs to provide the employees with such working conditions and benefits as prescribed.
This guide is intended as general information only. For legal advice and assistance with your business needs, please contact our Indian firm, INDUSLAW.