Did you know? Over 75% of HR professionals in India miss at least one key labour law, leading to massive penalties and loss of trust. In 2025, compliance isn’t optional—it’s your safety net.

Why Labour Law Compliance is Non-Negotiable

• Fines ranging from ₹10,000 to ₹5 lakh
• Risk of lawsuits and employee disputes
• Brand and trust erosion in the job market

Wages & Payment Compliance

• Code on Wages (2019): Salary must be paid before the 7th of every month. No unauthorized deductions allowed.
• Payment of Wages Act: Bank transfer only, no cash payments. Salary slips must be provided monthly.

Working Hours & Leave Management

• Shops & Establishments Act: Max 9 hours/day, 48 hours/week. Weekly off and public holidays are mandatory.
• Maternity Benefit Act: 26 weeks paid leave and nursing breaks required.

Statutory Benefits & Security

• EPF Act: 12% employer and employee contribution. Applicable to establishments with 20+ employees.
• ESI Act: Mandatory for companies with 10+ employees under income threshold.
• Gratuity Act: (Basic Salary × 15 days × years of service) ÷ 26.

Employee Protection & Legal Obligations

• Industrial Disputes Act: 1-month notice or equivalent compensation on termination.
• POSH Act: Internal Complaints Committee mandatory for workplaces with 10+ employees.
• Contract Labour Act: Registration mandatory for engagement of 20+ contract workers.
• Workmen’s Compensation Act: Mandatory coverage for workplace injuries and accidents.

Exit & Final Settlement

• All dues including gratuity, leave encashment, and bonuses must be settled within 30–45 days.
• Relieving and experience letters are legally required.

HR Compliance Checklist (2025)

Conclusion: Build a Culture of Compliance

Labour law compliance is more than just ticking boxes—it’s about building a culture of fairness, trust, and long-term business continuity. As HR professionals, staying proactive is the key to protecting your organization and people.

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