What are labour law compliances?
Labour Law Compliances are the binding rules and regulations which the organizations have to follow. Labour law compliances are a set of rules and conditions set for employment. Labour law Compliance includes-
- The benefits as well as the termination of an employee
- The rules and regulations for workers.
Below mentioned are the various acts included in Labour Compliance rules are:
- Contract Labour (Regulation and Abolition) Act, 1970,
- Equal Remuneration Act,1976
- Minimum Wages Act,1948 and Mines Act, 1952,
- Industrial Employment (Standing Order) Act 1946, etc.
- Building and Other Construction Workers (Regulation of Employment and Conditions Services) Act, 1996
What is Review Risk Management?
Review and Risk management is the process of recognizing, evaluating, and managing the risk of the organization. The threats, or risks, could arise from a wide variety of sources, including financial unpredictability, legal liabilities, errors in strategic management, accidents, and natural disasters. Review and risk management is the process of identifying and controlling threats. Review and Risk management allows organizations to prepare for unexpected situations by minimizing risks and extra costs before the risk arises.
Law compliance and Review Risk Management
Below mentioned laws and regulations addressing the Labour law compliance and review risk management are required to be complied with on the highest priority concerning each sector.
There are specific central acts that are required to be strictly adhered to by a company, which are mentioned below-
- Industrial Disputes Act,1947.
- Employees State Insurance Act 1948.
- EPF Scheme 1952 -Employee’s Provident Funds and Miscellaneous Provisions Act 1952.
- Payment of Bonus Act 1965.
- Factories Act,1948.
- Contract Labour (Regulation and Abolition) Act 1970.
- Child Labour (Prohibition and Regulation) Act 1986.
- Maternity Benefit Act 1961
- Payment of Gratuity Act 1972; and
- Sexual Harassment of Women at Workplace (Prevention, Prohibition, and redressal) Act 2013.
- Bonded labour system(Abolition)Act,1976.
The abovementioned acts are state-specific acts that are required to be followed by the companies.
Advantages of Review and Risk management
The advantages of Review and risk management includes-
Provides a healthy working environment
Review and Risk Management creates a safe and secure working environment for all employees and customers.
Enhances the business operations
It helps in enhancing the stability of business operations and also reduces legal liability.
Helps in reducing the risk
The review and risk management protects from uncertain risks that are destructive to both the company and the environment.
Protects the people involved in the organization
Protects all the people and assets of the organization from potential harm.
Helps establish the organization's insurance need to save on unnecessary premiums.
Importance of Labour Laws Compliance:
The scope of labour law compliance is not restricted to filing returns, maintaining statutory deposits, and records of the employees by the employer. It covers the various other particulars as well.
Minimizes the industrial dispute
It improves the relation between the employer and employees thereby minimizing the industrial disputes.
Prevents exploitation from the employers
It is in the interest of the workers to prevent them from exploitation by their employers and management.
Fair wages to the labourers and workers
It helps the Labour in getting fair wages.
Manages the conflicts between the employer and employees
Reduction of conflicts and strikes etc.
Provides a healthy working environment
Labour law compliance promotes a healthy working environment in the industrial system.
Provides compensation to workers, in case of mishappening.
Indian Labour Law and compliance cover every possible aspect for the protection of Labour rights. If the organization, in any case, fails to make the Labour law compliance, there are strict penalties specified by the law.
Parameter for Management of Labour Law compliance in India
Below mentioned parameters form the broad areas where the organization must adhere to Labour law compliances in India:
- Preservation of statutory records and registers.
- Filing of statutory forms and returns.
- Setting the statutory notices at the display boards of the organization.
- Abidance to significant legal provisions.
Role of the compliance officer in Labour law compliance
A compliance officer is an independent person who ensures that the organization complies with all the Labour law compliance as well as the legal requirements. Compliance officers have a responsibility to develop and implement an effective legal compliance process. Further, it also has a responsibility to train and educate the employees. The roles and responsibility of compliance officers in Labour law compliance are as follows –
- Enhancing and implementing an effective legal compliance program in Labour law compliance
- Create sound internal controls
- Drafting and reviewing company policies and programs.
- Assessing the business activities to keep a check on compliance risk
- Cooperate with external auditors and Human Resource when required
- Creating new plans to manage a crisis or compliance risk
- Educate and train employees on Labour law compliance
- Conveying the employee’s concerns or questions on legal compliance
Review and risk management process
The Review and risk management process is an arrangement for the measures that are required to be taken. The basic steps are required to be followed to manage the risk. These steps are termed as the Review and Risk management process. Review and risk management process involves-
Identification of risk
The very first step is the identification of the risks that the organization is facing in its working environment. Various types of risks are involved in the business i.e.- legal risks, environmental risks, market risks, regulatory risks, etc. It is important to identify risk factors. With the Review and risk management process these risks are easily visible to every stakeholder in the organization. With this process, anyone can easily access the information in which risks have been identified in the Review and risk management system.
Analyzing the risk
The scope of the risk must be determined by analyzing the risk. It is important to understand the link between identifying the risk and analyzing the risk factors within the organization. With the help of Review and risk management, it is easy to map risks on different policies, procedures, and business processes.
Evaluating the risk
Before evaluating the risk, the risks need to be prioritized. It is important to prioritize the risks because it allows the organization to get a comprehensive view of the risk exposure of the whole organization and in evaluating the risk.
Handling of risk
Risk Handling is the process that identifying, assessing, selecting, and implementing the options to set risk at acceptable levels given program constraints and objectives. The Handling of risk specifics on what and when it should be competent, who is responsible, and cost associated with it. the handling of risk helps in finding the appropriate strategy. Handling of risks involves-
a) Procedures to determine and evaluate Various Risk management options
b) Identifying the tools for the Risk-Handling Process
c) Provide an opinion on the use of the risk handling Options
d) Identify Reporting Requirements
Reviewing of Risk
Reviewing of Risk is the process to reevaluate the risk environment, the risk events, and their relative probability and influence on the business. Reviewing risk is conducted at regular intervals if there is any change in the plan of execution.
Choose Enterslice for Labour Law compliance and review risk management
- Enterslice provides all kind of services related to registration in all the Indian labour laws.
- Enterslice helps in preparing all the set of legal and corporate documents.
- Provides legal advisory or guidance on all legal matters.
- Provides requisite liaison on your behalf with the government authorities.
Enterslice covers all the aspects of labour law compliance. Enterslice has a team of professionals i.e. Charter accountants, Company secretaries, lawyers who prepare the list of applicable Labour laws and the rules and regulation applicable to the organization.