Labour Law Compliances

Overview

The Employees' Provident Fund (EPF) is a mandatory retirement savings scheme under the EPF & MP Act, 1952. Employers must register with EPFO and contribute to employee PF accounts monthly. Proper EPF compliance ensures employee retirement security and avoids significant penalties.

Applicability

• Mandatory: Establishments with 20 or more employees
• Voluntary: Smaller establishments can register voluntarily
• Continuity: Once registered, coverage continues even if employee count drops below 20
• Applies to factories, shops, establishments, and other notified industries

Contribution Rates (Current)

Monthly Compliance

• ECR Filing: Electronic Challan cum Return on EPFO Unified Portal
• Due Date: 15th of the following month
• Payment: Online through EPFO portal
• Admin Charges: 0.50% of Basic + DA
• EDLI Charges: 0.50% (capped at Rs.15,000)

Key Forms

Our Services

• EPFO registration for new establishments
• Monthly ECR preparation and filing
• UAN generation and KYC updates for employees
• Employee addition and exit management
• PF transfer and withdrawal assistance
• Compliance audit and gap analysis

Penalties for Non-Compliance

Overview

The Employees' State Insurance (ESI) scheme provides health and social security benefits to workers under the ESI Act, 1948. It covers medical care, sickness benefits, maternity benefits, and disability support. ESI is mandatory for covered establishments and provides comprehensive healthcare through ESIC dispensaries and hospitals.

Applicability

• Factories: Non-seasonal factories with 10 or more employees
• Other Establishments: Shops, hotels, restaurants, cinemas with 10+ employees (state-wise)
• Employee Wage Limit: Rs.21,000 per month (Rs.25,000 for PwD)
• Once covered, employee continues under ESI until wage crosses limit

Contribution Rates (FY 2024-25 & 2025-26)

Benefits Covered

Contribution Periods

• Period 1: April to September (Benefit period: January to June)
• Period 2: October to March (Benefit period: July to December)

Monthly Compliance

• Challan Generation: Through ESIC portal
• Due Date: 15th of the following month
• Half-Yearly Returns: May 11 and November 11
• IP Number: Generate for each new employee

Our Services

• ESIC registration for establishments
• Monthly contribution calculation and filing
• Employee IP number generation
• Half-yearly return filing
• Benefit claim assistance
• Inspection and audit support

Penalties

Overview

Beyond monthly contributions, employers must ensure annual compliance for EPF and ESI including annual returns, employee KYC updates, and maintaining registers for inspections. Proper annual compliance ensures smooth claim processing for employees and reduces audit issues.

EPF Annual Compliance

• Annual PF Return: Consolidated ECR data submission
• DIR-3 KYC: For company directors (linked to DSC)
• Form 3A & 6A: Annual contribution cards and statement
• International Workers: Special compliance for foreign nationals

ESI Annual/Half-Yearly Returns

• Return of Contribution: Half-yearly submission (May 11 and November 11)
• Accident Reports: Report any workplace accidents
• Register Maintenance: Attendance, wages, and contribution registers
• Inspection Records: Maintain visitor book and compliance records

Employee KYC Updates

• Aadhaar Seeding: Link Aadhaar to UAN for all employees
• Bank Account: Verify and update bank details
• PAN Linking: For tax compliance
• Nomination Updates: Form 2 for EPF and EPS nominations

Our Services

• Annual return preparation and filing
• KYC update assistance for all employees
• Compliance audit and gap analysis
• Inspection and inquiry support
• Register maintenance guidance
• Employee data reconciliation

Overview

Gratuity is a statutory benefit payable to employees for long-term service under the Payment of Gratuity Act, 1972. Employers must maintain nomination records, calculate gratuity correctly, and pay within the prescribed time on resignation, retirement, or death.

Applicability

• Factories, mines, oilfields, plantations, ports, railways
• Shops and establishments with 10 or more employees
• Once applicable, continues even if employee count drops below 10
• Applies to all employees regardless of designation

Eligibility Criteria

• Traditional Rule: 5 years of continuous service
• New Labour Code: 1 year for fixed-term employees
• Working Days: 240 days = 1 year (190 for underground workers)
• Exception: 5-year rule waived in case of death or disablement

Calculation Formula

Maximum Gratuity Cap

• Private Sector: Rs.20 lakh (tax-exempt)
• Government Employees: Rs.25 lakh

Key Forms

Compliance Requirements

• Maintain nomination records (Form F) for all employees
• Display abstract of the Act at workplace
• Pay gratuity within 30 days of it becoming due
• Interest payable for delayed payment

Our Services

• Gratuity policy drafting
• Nomination register maintenance
• Gratuity calculation
• Payment processing compliance
• Gratuity trust/insurance advisory

Overview

The Maternity Benefit Act, 1961 (amended 2017) provides comprehensive maternity benefits to women employees including paid leave, medical bonus, and job protection. Employers must comply with leave entitlements, wage payments, and facility requirements.

Applicability

• Establishments with 10 or more employees
• Factories, mines, plantations, shops
• Note: Does not apply to ESI-covered employees (covered under ESI)

Eligibility

Women employees who have worked 80 days in the 12 months preceding expected delivery date.

Leave Entitlements

Employer Obligations

• Pay full wages during maternity leave
• Pre-delivery wages: Advance within 8 weeks of expected delivery
• Post-delivery wages: Within 48 hours of proof of delivery
• No strenuous work in 10 weeks before delivery
• Cannot terminate during or due to maternity leave
• Creche Facility: Mandatory for establishments with 50+ employees
• 4 creche visits per day allowed

Work-from-Home Option

Employer may offer work-from-home post-maternity by mutual agreement, depending on job nature.

Our Services

• Maternity benefit policy drafting
• Leave tracking and management
• Compliance documentation
• Creche facility advisory

Overview

The Prevention of Sexual Harassment of Women at Workplace Act, 2013 (POSH Act) mandates employers to provide a safe working environment free from sexual harassment. Compliance includes forming an Internal Complaints Committee, policy formulation, and annual reporting.

Applicability

• All establishments with 10 or more employees
• Includes full-time, part-time, interns, and contractors
• Applies to offices, branches, and any workplace location

Internal Complaints Committee (ICC)

• Mandatory: At each office/branch with 10+ employees
• Minimum Members: 4 (at least 50% women)
• Presiding Officer: Senior woman employee
• Employee Members: 2+ committed to women's cause
• External Member: 1 from NGO, legal expert, or social worker
• Tenure: 3 years from appointment

Employer Obligations

• Constitute ICC and notify members
• Formulate and publish POSH policy
• Display penal consequences at workplace
• Conduct awareness programs/workshops
• Provide safe working environment
• Treat sexual harassment as misconduct
• Facilitate ICC proceedings
• Pay fees to external member

Annual Compliance

• ICC Annual Report: Submit to District Officer (Section 21)
• Due Date: January 31
• Contents: Complaints received, disposed, pending >90 days, actions taken

Penalties for Non-Compliance

Our Services

• ICC formation and composition advisory
• POSH policy drafting
• Annual report preparation
• Awareness training programs
• Compliance audit