Wednesday, 9 October 2013

Statutory Compliances in India ?


STATUTORY COMPLIANCE


With scores of labor law compliances required in Indian companies, organizations can spend a significant amount of time ensuring that they are compliant with all these provisions. These include but are not limited to the following regulations:



·         Factories Act

·         PF & Misc Provision Act

·         ESI Act

·         Minimum Wages Act

·         Bonus Act

·         Contract Labour Regulation and Abolition Act

·         Professional Tax Act

·         Shop and Establishment Act

·         Labour Welfare Fund

·         Maternity Benefit Act

·         Payment of Wages Act

·         Other Labour Regulations as applicable for the establishment

Statutory Compliances in HR – A Detailed List

The present day legal climate is one of uncertainty and confusion. In most cases, a law comes to light only after its contravention, resulting in severe penalties. Compliance Management is a must in keeping you away from the long arm of the law!

Here is a quick compilation of the various 
Statutory Compliances In HR

  • The Apprentices Act, 1961
  • The Contract Labour (Regulation & Abolition) Act, 1970
  • The Child Labour (Prohibition & Regulation Act), 1986
  • The Industrial Disputes Act, 1946
  • The Minimum Wages Act, 1948
  • The Payment Of Gratuity Act, 1972
  • The Industrial Employment Standing Orders Act, 1946
  • The Employees Provident Fund & Miscellaneous Provisions Act, 1952
  • The Equal Remuneration Act, 1976
  • The Employees' State Insurance Act, 1948
  • The Payment Of Bonus Act, 1965
  • The Payment Of Wages Act, 1936
  • The Factories Act, 1948
  • The Employment Exchanges(Compulsory Notification Of Vacancies) Act, 1959
  • The Trade Unions Act, 1926
  • The Workmen's Compensation Act, 1923
  • Inter State Migrant Workmen( Regulation Of Employment & conditions Of service ) Act, 1979.

Each one of these have to be filed at various parts of the year, under various forms.

But your compliance partner must lay out a clear process that follows the following steps:

  • Initial Assessment, where the client’s business needs are understood.
  • Finalization of Check List for various processes & activities
  • Risk assessment & evaluation – adequacy and control measures.
  • Analyzing various HR Compliance policies and checking documents pertaining to various activities
  • Financial liabilities associated with the processes if any is being determined – look into audited balance sheet & Annual report
  • Gaps being identified in the above process are transformed into observations
  • Observations are analyzed to form recommendations
  • Overview of the findings are presented to the client
  • Final reports are submitted


CHEKLIST FOR EMPLOYERS
Statutory Deposits & Returns
January

SR.  DATE AND MONTH   Act NAME OF THE STATUTORY RETURN
1 Before 21st    ESIC ESIC Challan
2 Before 15th     P.F. P. F. Challan
3 Before 25th    P.F. Form 5, 10 & 12A (P. F.)
4 Before 15th     Factory Act, 1948 Form 21 ( Annual Return)
5 Before 21st     Maternity Benefit Act Form K,L,M & N
6 Before 15th    Minimum Wages Act Form 3 (
7 Before 31st     Employment Exchange Act Form ER - 1
8 Before 31st     Welfare Fund Act Deposit in Fund A/c
9 Monthly Statutory Register Daily / End of the month




February

SR. DATE AND MONTH NAME OF THE STATUTORY RETURN
1 Before 21st     ESIC ESIC Challan
2 Before 15th     P.F. P. F. Challan
3 Before 25th    P.F. Form 5, 10 & 12A (P. F.)
4 Before 15th    Payment of Wages Act Form IV
5 Monthly Statutory Register Daily / End of the month


March

SR.   DATE AND MONTH   NAME OF THE STATUTORY RETURN
1 Before 21st     ESIC ESIC Challan
2 Before 15th     P.F. P. F. Challan
3 Before 25th    P.F. Form 5, 10 & 12A (P. F.)
4 P.F. Annual Returns Form 6A d& 3A
5 Monthly Statutory Register Daily / End of the month



April
SR. DATE AND MONTH NAME OF THE STATUTORY RETURN
1 Before 21st     ESIC ESIC Challan
2 Before 15th     P.F. P. F. Challan
3 Before 25th     P.F. Form 5, 10 & 12A (P. F.)
4 Before 30th    Employment Exchange Act Form ER - 1
5 Monthly Statutory Register Daily / End of the month
---------------------------------------------------------------------
May

SR. DATE AND MONTH NAME OF THE STATUTORY RETURN
1 Before 21st ESIC ESIC Challan
2 Before 15th P.F. P. F. Challan
3 Before 25th P.F. Form 5, 10 & 12A (P. F.)
4 Before 12th May ESIC ESIC Half Yearly Returns
5 Monthly Statutory Register Daily / End of the month

June

SR. DATE AND MONTH NAME OF THE STATUTORY RETURN
1 Before 21st ESIC ESIC Challan
2 Before 15th P.F. P. F. Challan
3 Before 25th P.F. Form 5, 10 & 12A (P. F.)
4 Monthly Statutory Register Daily / End of the month
--------------------------------------------------------------------------------------------

July

SR. DATE AND MONTH NAME OF THE STATUTORY RETURN
1 Before 21st ESIC ESIC Challan
2 Before 15th P.F. P. F. Challan
3 Before 25th P.F. Form 5, 10 & 12A (P. F.)
4 Before 30th Employment Exchange Act Form ER - 1
5 Monthly Statutory Register Daily / End of the month

--------------------------------------------------------------------------------------------
August

SR. DATE AND MONTH NAME OF THE STATUTORY RETURN
1 Before 21st ESIC ESIC Challan
2 Before 15th P.F. P. F. Challan
3 Before 25th P.F. Form 5, 10 & 12A (P. F.)
4 Monthly Statutory Register Daily / End of the month
--------------------------------------------------------------------------------------------
 
September

SR. DATE AND MONTH NAME OF THE STATUTORY RETURN
1 Before 21st ESIC ESIC Challan
2 Before 15th P.F. P. F. Challan
3 Before 25th P.F. Form 5, 10 & 12A (P. F.)
4 Monthly Statutory Register Daily / End of the month
--------------------------------------------------------------------------------------------
October

SR. DATE AND MONTH NAME OF THE STATUTORY RETURN
1 Before 21st ESIC ESIC Challan
2 Before 15th P.F. P. F. Challan
3 Before 25th P.F. Form 5, 10 & 12A (P. F.)
4 Before 30th Employment Exchange Act Form ER - II
5 Monthly Statutory Register Daily / End of the month
--------------------------------------------------------------------------------------------
November

SR. DATE AND MONTH NAME OF THE STATUTORY RETURN
1 Before 21st ESIC ESIC Challan
2 Before 15th P.F. P. F. Challan
3 Before 25th P.F. Form 5, 10 & 12A (P. F.)
4 Before 30th Factory Act, Form 2 Renewal fees
5 Before 11th November ESIC ESIC Half Yearly Returns
6 Before 30th Payment of Bonus Act Form A, B & C
7 Monthly Statutory Register Daily / End of the month
--------------------------------------------------------------------------------------------

December

SR. DATE AND MONTH NAME OF THE STATUTORY RETURN
1 Before 21st ESIC ESIC Challan
2 Before 15th P.F. P. F. Challan
3 Before 25th P.F. Form 5, 10 & 12A (P. F.)
4 Monthly Statutory Register Daily / End of the month

Introduction of statutory compliance its needs and importance.

Statutory compliance means compliance to be done under the various statutes or law wherein it is the statutory or legal obligation on the individual(includes companies) to be comply thereunder.

Statutory compliance is very wide it may be labour compliance, Taxation compliance etc. and if individual will not comply under them then criminal liabilities may arise.

These compliances importance is depend on the nature of compliance like if it is labour compliance then u may observe that they are meant for the welfare, safety and health of the labours.
In other words, to follow act, rules & regulation under provision of law is called compliance. For HR Statutory Compliance, we must follow labour laws and maintain records as prescribed under act.


Statutory means "of or related to statutes," or what we normally call laws or regulations. Compliance just means to comply with or adhere to. So statutory compliance means you are following the laws on a given issue. The term is most often used with organizations, who must follow lots of regulations. When they forget or refuse to follow some of those regulations, they are out of statutory compliance. A company that follows all the rules, is in statutory compliance.

Purpose-:

Safeguarding the employees and the enterprise from untoward risks by managing and consulting on issues such as retirement benefits and Taxation

ESI Provident Fund Profession Tax Gratuity. The Minimum Wages Act. The Maternity Benefit Act. The Payment Of Bonus Act The Payment Of Wages Act was originally applicable to non-seasonal factories using power and employing 20 or more persons; but it is now applicable to non-seasonal power using factories employing 10 or more persons and non-power using factories employing 20 or more persons. All the employees in the factories or establishments to which the Act applies shall be insured under this Act.


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