NIRC - ICSI
Labour Laws
COMPLAINCE AND DUE DILIGENCE
The new perspective
&
First ever web enabled
facilities by
Labour Department Haryana
By
Anupam Malik
Additional Labour Commissioner
Haryana
ISSUES ON COMPLIANCE OF LABOUR LAWS
 GLOBALISED MARKETS AND COMPETITION.
 THE CHANGING WAYS OF CONDUCTING BUSINESS.
 RAPID CHANGE IN TECHNOLOGIES.
 MOBILITY OF LABOUR.
 NEED FOR FLEXIBILITY OF ORGANISATIONS
 NEED TO CATER TO CLIENTS LOCATED IN DIFFERENT
TIME ZONES OF THE WORLD.
 SOCIAL AND CULTURAL CHANGE DUE TO SO MANY
CHANGES.
 LAWS MUST CONFORM TO THE NEED OF CHANGING
TIMES.
 HOW TO CONFORM TO THE REQUIREMENTS OF SOCIAL
CLAUSE OF THE WTO WITHOUT HARM TO THE INDUSTRY
– SA 8000 STANDARDS
WHAT ARE GLOBAL LABOUR
STANDARDS?
THOSE WE PERCEIVE ?
THOSE PROVIDED IN OUR LAW ?
THOSE PERSCRIBED BY THE ILO ?
THOSE PERCEIVED BY THE BUYER ?
The core labour standards have been
crystallized to nine major issues based
on –
• The
eleven conventions of the
International Labour Organization,
• The UN’s Universal Declaration of
Human Rights and
• The Convention on Rights of the Child.
These 9 major issues are as follows -
SOCIAL ACCOUNTABILITY – 8000 (SA- 8000)
STANDARDS
1. No child Labor
2. No Forced Labor
3. Health and Safety
4. Freedom of Association and Right to
5.
6.
7.
8.
9.
Collective Bargaining
Discrimination
Discipline
Working Hours
Compensation
Management Systems
ISSUES FOR AN INDUSTRY
Approval of factory/building plan for
industrial safety, Health and Welfare
Organization goals and culture
Manpower planning and recruitment
Core and non-core activities vis-à-vis
manpower planning
Manpower outsourcing plans
Application of SA8000 Standard based
on ILO conventions – India being a
member country
LABOUR LAWS
AND THEIR COMPLIANCE
INDUSTRIAL
SAFETY &
HEALTH
REGULATORY
LAWS
COMPLIANCE AND
DUE DILIGENCE
INDUSTRIAL
RELATIONS
WAGES
SOCIAL
SECURITY
PROHIBITING
LAWS FOR
PROTECTION
OF
UNORGANISED
LABOUR
Industrial Safety and Health
The Factories Act, 1948
–
–
–
–
REGISTRATION & LICENSING
INDUSTRIAL SAFETY
HEALTH
WELFARE
The Building and other Construction Workers
Welfare Cess Act 1996
The Maternity Benefits Act, 1961
PROTECTION OF RIGHTS OF WOMEN WORKERS DURING
PREGNANCY AND STAGES OR EVENTS CONNECTED
THEREWITH
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REGULATORY LAWS
• Factories Act, 1948
• The Contract Labour (Regulation And
•
•
•
Abolition) Act, 1970
The Motor Transport Workers Act, 1961
The Punjab Shops And Commercial
Establishments Act, 1958
Industrial Employment (Standing Orders)
Act, 1946
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INDUSTRIAL RELATIONS
• Industrial Disputes Act, 1947
• Trade Unions Act, 1926
• Industrial Employment (Standing
Orders) Act, 1946
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Wages
• The Payment of Wages Act, 1936;
• The Minimum Wages Act, 1948;
• The Equal Remuneration Act, 1976;
• The Payment of Bonus Act, 1965
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Social Security Legislations
• The Employees’ Provident Funds and
Miscellaneous Provisions Act, 1952;
• The Employees’ State Insurance Act, 1948;
• The Payment of Gratuity Act, 1972
• The Employee’s Compensation Act, 2009
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PROHIBITING LAWS FOR PROTECTION
OF UNORGANISED LABOUR
• The Bonded Labour System
(Abolition) Act, 1976;
• The Child Labour (Prohibition and
Regulation) Act, 1986;
• The Supreme Court decision
prohibiting hazardous employment of
children below 14 years
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COMPLIANCE AND DUE DILIGENCE
REGULAR
• FACTORY
REGULAR AND EVENT BASED
REGISTRATION / LICENSE, APPROVAL OF BUILDING PLANS, SAFETY, HEALTH,
WELFARE.- EXEMPTIONS
• ESTABLISHEMENT
REGISTRATION UNDER SHOPS AND COMMERCIAL ESTABLISHMENTS
ACT AND OTHER RECORD. .- EXEMPTIONS
• CERTIFICATION OF STANDING ORDERS.
• MANPOWER - PROPER RECORD - APPOINTMENT ATTENDANCE, AND WAGES (SERVICE).
• WAGES PAID IN TIME, IN CASH, WITHOUT ILLEGAL DEDUCTION OR DISCRIMINATION
• SOCIAL SECURITY RECORD OF DEDUCTIONS, TIMELY DEPOSITS, AND TIMELY FILING OF
RETURNS – RECORD FOR EMPLOYEES.
• CONTRACT LABOUR EMPLOYMENT – REGISTRATION, LICENSE, WAGES, WELFARE.
EVENT BASED
• DISPUTES, CHANGE IN CONDITIONS OF EMPLOYMENT, LAY OFF,
RETRENCHMENT CLOSURE - INDUSTRIAL DISPUTES ACT 1947
• ACCIDENTS - ESI ACT & WORKMENS COMPENSATION ACT 1923
• WAGE DISPUTE
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Be a business manager not just a
Company Secretary
Change Your Mind Set
Traditional Mindset
BUSINESS
= Battlefield
CORPORATION = Machine
MANAGEMENT = Control
EMPLOYEE
= Child
MOTIVATION
= Fear
Reality Today
BUSINESS IS AN ECOSYSTEM
CORPORATION IS A COMMUNITY
MANAGEMENT IS SERVICE
EMPLOYEE IS A PEER
MOTIVATION WITH VISION
“It may be possible to punish employees into
compliance, but we cannot punish them into
commitment and commitment is what today's
organizations require”.
God Bless India
Thank you