Compliances

Labour Laws

Documents Required

Employees Provident Funds & Miscellaneous Provisions Act, 1952

The Employees State Insurance Act, 1947

The Payment of Bonus Act, 1965

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Overview

Labour Laws

Labour laws are enacted and enforced by both Central and State Governments. These laws are influenced by the human rights and the standards which have been emerged from the United Nations. There are various Labour Laws prevalent in India which are applicable depending upon the type of industry and activity in which an entity is engaged.

Central Government
Enacted & Enforced by Central Government
  1. 1The Employees Provident Fund and Miscellaneous Provisions Act, 1952
  2. 2The Employees State Insurance Act, 1947 etc
Central + State Enforcement
Enacted & Enforced by Central Government
  1. 1The Payment of Wages Act, 1936
  2. 2The Industrial Employment (Standing Orders) Act, 1946
  3. 3The Industrial Disputes Act, 1947
  4. 4The Minimum Wages Act, 1948
  5. 5The Apprentices Act, 1961
  6. 6The Maternity Benefit Act, 1961
  7. 7The Motor Transport Act, 1961
  8. 8The Payment of Bonus Act, 1965
  9. 9The Contact Labour (Regulation and Abolition) Act, 1970
  10. 10The Payment of Gratuity Act, 1972
  11. 11The Equal Remuneration Act, 1976
  12. 12The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
  13. 13The Child Labour (Prohibition and Regulation) Act, 1986
  14. 14The Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Act, 1988
  15. 15The Building and Other Constructions Workers' (Regulation of Employment and Conditions of Service) Act, 1996
  16. 16The Building and Other Construction Workers Cess Act, 1996
State Enforcement
Enacted by Central, Enforced by State Government
  1. 1The Employees' Compensation Act, 1923
  2. 2The Employers' Liability Act, 1938
  3. 3The Weekly Holidays Act, 1942
  4. 4The Factories Act, 1948
  5. 5The Employment Exchange (Compulsory Notification of Vacancies) Act, 1959 etc
State Governments
Enacted and Enforced by State Governments
  1. 1Laws on Shops & Commercial Establishments
  2. 2Law regarding Labour Welfare Fund
Different laws requires different compliances from time to time. Some of the major compliances under some major laws which are applicable on most of the types of entity are as follows:
Act 01
Employees Provident Funds & Miscellaneous Provisions Act, 1952
Applicability for Registration
Compulsory Registration and Contribution
Every establishment which is a factory engaged in specified industry employing 20 or more employees.
Voluntary Registration
An establishment having less than 20 employees can also get registered under the Act voluntarily by entering into an agreement with the existing employees of the organization.
Eligibility for Contribution
Employee working in a factory or establishment individually or through contractor and drawing a salary of INR 15,000/- per month has to mandatorily make contribution towards EPF along with the employer.
Rate of Contribution
EPF Contribution Rate Table
Particulars Employees' Contribution Employers' Contribution
EPF 12% / 10% Diff. of EE Share and Pension Contribution
EPS 8.33%
EDLIS 0.5%
EPF Admin Account 0.50% (w.e.f 01.06.2018)
EDLIS Admin Account — (w.e.f 01.04.2017)
10% Rate is applicable for:
  • 1Any establishment in which less than 20 employees are employed.
  • 2Any sick industrial company and which has been declared as such by the Board for Industrial and Financial Reconstruction.
  • 3Any establishment which has at the end of any financial year, accumulated losses equal to or exceeding its entire net worth.
  • 4Any establishment in following industries: (a) Jute  (b) Beedi  (c) Brick  (d) Coir and  (e) Guar gum Factories.
Compliance Schedule
EPF Compliance Calendar
S.No. Compliance Form Due Date
1 Contribution Payment ECR Challan 15th of the Following Month
2 Employee Details entitled and required to become members of the Fund Form 9 Within 15 Days of the coverage
3 Return of Ownership Form 5A Within 15 Days of the coverage
4 Monthly report providing details of the employees newly joining the Provident Fund scheme during the given month Form 5 15th of the Following Month
5 Monthly report providing details of members left service during the month Form 10 21st of the Following Month
6 Monthly Details of Payment of Contribution Form 12A 25th of the Following Month
7 Annual Consolidated statement of contribution Form 6A 30th April – Every Year
8 Member's Annual Contribution Card Form 3A 30th April of the following year
Penalties
Whoever, for the purpose of avoiding any payment to be made by himself under this Act, the Scheme, the Pension Scheme or the Insurance Scheme or of enabling any other person to avoid such payment, knowingly makes or causes to be made any false statement or false representation shall be punishable with imprisonment upto 1 year, or with fine of INR 5,000/-, or with both.
If a person fails to comply with the provision related to the Contribution to the fund, he shall be punishable with imprisonment upto 3 years but –
  • Min. 1 year and a fine of INR 10,000/- in case of default in payment of the employee's contribution which has been deducted by the employer from the employee's wages.
  • Min. 6 months and a fine of INR 5,000 in any other case: Provided that the Court may, for any adequate and special reasons to be recorded in the judgment, impose a sentence of imprisonment for a lesser term.
Act 02
The Employees State Insurance Act, 1947
Applicability for Registration and Contribution
Applicability
Every establishment which is a factory including shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings and newspaper establishments and Private Medical and Educational institutions employing 10 or more employees.
Eligibility for Contribution
Any employee working in a factory or establishment individually or through contractor and drawing a salary of INR 21,000/- or less per month has to mandatorily make contribution towards EPF along with the employer.
Rate of Contribution
Employer's Contribution
4.75%
3% in newly implemented areas for first 24 months
Employees' Contribution
1.75%
1% in newly implemented areas for first 24 months
Compliance Schedule
ESI Compliance Calendar
S.No. Compliance Form / Due Date
1 Register of Employees Form 6
2 Registration of families Form 1A
3 Issue of Identity Card Form 4
4 Payment of Contribution By 21st of the Following Month
5 Half Yearly Returns Form 6A  by 11th of the following month
Penalties
Whoever, for the purpose of causing any increase in payment or benefit under this Act, or for the purpose of causing any payment or benefit to be made where no payment or benefit is authorised by or under this Act, or for the purpose of avoiding any payment to be made by himself under this Act or enabling any other person to avoid any such payment, knowingly makes or causes to be made any false statement or false representation, shall be punishable with imprisonment for a term which may extend to 6 months or with fine not exceeding INR 2,000/- or with both.
If any person fails to pay any contribution which under this Act it shall be punishable with, Imprisonment: upto 3 years but –
  • which shall not be less than one year, in case of failure to pay the employee's contribution which has been deducted by him from the employee's wages and shall also be liable to fine of ten thousand rupees
  • which shall not be less than six months, in any other case and shall also be liable to fine of five thousand rupees
If any person:
  • fails or refuses to submit any return required by the regulations or makes a false return, or
  • Is guilty of any contravention of or non-compliance with any of the requirements of this Act or the rules or the regulations in respect of which no special penalty is provided, he shall be punishable with imprisonment for a term which may extend to 1 year or with fine which may extend to INR 4,000/-, or with both.
Act 03
The Payment of Bonus Act, 1965
Applicability & Eligibility
Applicability for Registration
Every Factory or every other establishment in which 20 or more persons are employed on any day during an accounting year.
Eligibility for Receiving Bonus
Employees (other than apprentices) drawing a salary or wage up to INR 21,000 per month are eligible to receive bonus. The employee must have worked for at least 30 working days in the establishment during the accounting year to qualify for bonus.
Payment of Bonus
Bonus Range
Minimum Bonus8.33%
Maximum Bonus20%
Conditions
Minimum8.33% of salary/wage or ₹100, whichever is higher
MaximumUp to 20% of salary/wages if the allocable surplus exceeds the minimum bonus requirement.
Time Limit for Payment
1 Month
Where there is a dispute regarding the payment of bonus pending before any authority under Section 22, the bonus must be paid within 1 month from the date on which the award becomes enforceable or the settlement comes into operation.
Within 8 Months
In all other cases, the bonus must be paid within 8 months from the close of the accounting year.
Compliance Schedule
Bonus Compliance Registers
S.No. Compliance Form
1 Register showing computation of Allocable Surplus under Section 2(4) Form A
2 Register showing Set On and Set Off of Allocable Surplus under Section 15 Form B
3 Register containing complete details of Bonus Due and Bonus Paid to each employee Form C
4 Annual Return (to be filed within 30 days from the expiry of the time limit for payment of bonus) Form D
Penalty
If any person—
  • Contravenes any of the provisions of this Act or any rule made thereunder
  • To whom a direction is given or a requisition is made under this Act fails to comply with the direction or requisition, he shall be punishable withimprisonmentfor a term which may extend to 6 months, or withfinewhich may extend to INR 1,000/-, orwith both.
Core Eligibility

Labour Law

Labour laws in India are enacted and enforced by both the Central and State Governments under the concurrent List of the Constitution, heavily mirroring international human rights and United Nations or ILO standards.

To simplify ease of doing business & reduce manual compliance burden the Government has consolidated 29 legal central laws into Four Unified Labour Codes.

Frequently Asked Questions

Private Limited Company Registration

Labour Laws regulate employee rights, wages, workplace safety, and social security benefits in India.

The four Labour Codes are Wage Code, Social Security Code, Industrial Relations Code, and OSH Code.

PF Registration is mandatory for establishments employing 20 or more employees.

Employees earning up to ₹15,000 per month are generally covered under mandatory EPF provisions.

ESI Registration is required for eligible establishments employing 10 or more employees.

Employees earning up to ₹21,000 per month can avail ESI benefits.

PF contributions must be deposited by the 15th of the following month.

The Act governs payment of annual bonuses to eligible employees in covered establishments.

The minimum bonus payable is 8.33% of salary or wages as per the Bonus Act.

EaseTheBiz assists businesses with PF Registration, ESI Registration, labour law compliance, filings, and statutory requirements across India.

Labour Laws

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