Labour Law Compliance refers to the process of ensuring conformity with the laws enacted, these may be statutory regulations, executive rules or notifications issued by relevant district-level authorities. This three-tiered system of governance aids in addressing issues specific to certain jurisdictions, however, it also leads to bureaucratic red tape and a confusing scheme of law. The confusion is compounded by the differences between states which throws up diverse compliance requirements for organisations operating pan-India. Thus, compliance with labour laws poses several challenges from an organization’s HR point of view as well as from the perspective of liability for ensuring compliance while dealing with contractor/sub-contractor.
The compliance and labour law scenario in India is as vast as it is complex. A multitude of laws and Acts govern the functioning of companies in the country, and labour laws in India look to protect businesses and employees equally.It is difficult to grapple with the enormity of labour laws in India, since there are variants in Central Acts and rules and numerous state Acts and rules that cover different functions and nuances of HR and company laws. While attempting to cater to all establishments equally, the resultant has been a compendium of what can be termed the most exhaustively covered scope of labour laws and guidelines for its practice.
The key to being able to comply with Indian labour laws does not really lie in knowing of the laws, but in being able to understand and interpret them. There is often much to be inferred in what is directed and what is intended, and it takes someone with experience and expertise to be able to make business sense of it for a corporate. The extent and implication for companies sometimes varies with the scope and nature of business. Adding in a new dimension of greater challenge is the dynamic nature of labour laws, which have seen a consistent upgradation and change in recent times.