Indian Laws that Companies and their HRs Should Know

Businesses run profitably if their human resources are efficient and effective enough and this is possible only when the organizations and their human resource managers keep their employees satisfied while adhering to all the laws of the land. A wrong decision or step with respect to the adherence of any of the laws relating to workplace and organizational set-up can result in grave consequences that can’t be altered with ease. Hence, HR consultants suggest that every organization irrespective of its size should hire an in-house HR professional or partner with HR consulting firms to handle all the compliance related issues. Here we shall discuss some laws that every company should know.

For the recruitment of candidates, it is compulsory for organizations, if the state so requires, in the private sector with 25 or more employees to inform the employment exchanges regarding a vacancy, as per the Employment Exchange (Compulsory Notification of Vacancies) Act.

In India, there are no specific laws related to the background check of candidates for recruitment. However, HR management consulting professionals highly recommend conducting background checks of candidates with respect to criminal records at the police stations in the jurisdiction as necessary, medical history and drug screening, visa permit for foreigners working in India etc.

The HR department working for a factory should be conversant with The Factories Act, 1948 that deals with the policies related to occupational safety, health and welfare of the workers employed in factories.
All HR professionals dealing with the employees’ salaries and payments should be familiarizing themselves with The Employees Provident Fund Act, 1952 that helps to provide a kind of social security to employees drawing a salary less than Rs. 15000.

These days, almost all of the industries and organizations employ women and so they should be adhering to The Maternity Benefit Act, 1961. HR consultants opine that it is essential for all the organizations to follow the rules as per this act, not just to adhere to the government rules and regulations, but to gain the confidence of women employees and to retain their loyal services for a long term.

The Workmen’s Compensation Act, 1923 provides financial protection to the workers and their families in case of any accidental injuries or death. Companies should ensure that their managers have updated knowledge related to this law so as to avoid any kind of legal hassles and inconvenience to the grieving employee or employee’s family.

Companies should also strictly follow the rules of The Payment of Wages Act that regulates payments of wages and avoids any kind of delay or unauthorized deductions in the workers’ payments. They should also be thoroughly aware of The Minimum Wages Act that defines the minimum wages that should be paid to either skilled or unskilled workers along with the Payment of Bonus Act.

The topic of laws to be adhered by organizations is really a huge ocean that can’t be completed in a small write up. There are many more acts like the Payment of Gratuity Act, the Apprentices Act, the Employees Provident Fund Act, the Industrial Disputes Act, the Employee State Insurance act, professional tax etc. HR management consulting professionals strongly insist on adhering to the Prevention of Sexual Harassment Act and Child Labour (Prohibition and Regulation) Act, 1986. Consult Accuprosys, one of the leading HR consulting firms to resolve all your issues related to HR laws.

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