This article is written by Aditya Shrivastava and Adv. Komal Arora. It delves into the important labour laws as well as other related laws that every HR professional should know. It includes the provisions of these legislations, a brief checklist for compliance and frequently asked questions on the topic. 

Introduction 

HR managers have a big role in shaping how a company grows. Right from recruiting, inducting, training and development and later to performance assessment and grievance resolution, they are responsible for performance, retention and satisfaction level of employees. 

Labour law has a very important role to play in what any HR manager does in a day. For instance, hiring is accompanied by contracts and possible negotiation but firing may require one to follow provisions of different contracts, ensure that any Intellectual Property created by an employee or a consultant is protected and secured in favor of the company and that proper disciplinary proceedings are taken if someone is being fired for a breach in the code of conduct or for committing the offence of sexual harassment etc. Many HR managers perform these tasks without having any indication about the legal underpinnings of these functions, especially at a junior level. This can be quite risky from the company’s perspective.  Having knowledge of labour law is thus crucial for HR professionals as it ensures that the company adheres to regulations related to wages, working hours, benefits to workers and their safety standards etc. and avoids any disputes. 

This is one of the primary reasons why every HR course needs to have a legal module. However, this is usually covered in the way that very scared patients go through a root canal. You close your eyes through the ordeal and try to forget the experience as soon as it is over. With exceptions, of course, most fresh candidates who have specialised in HR have precisely little practical knowledge about labour and employment laws, or any other law that may be relevant to their work.

However, as you go up the chain, legal knowledge becomes indispensable. Let’s say you are drafting a leave policy for an organisation, and fail to check the relevant Shops and Establishments Act of the state, you will almost certainly get it wrong. The consequence can be paying heavy fines by the company if an inspector comes visiting, a potentially negative report in the media, and your bosses being very cross at your lack of relevant legal knowledge thereafter.

Let’s take another example. If an organisation has more than 25 or more employees, the Employment Exchange (Compulsory Notification of Vacancy) Act, 1959 mandates a private establishment to give a public notification to certain employment exchanges. Most HR managers have no clue about this law and their employers may have to end up paying big fines and dealing with legal hassles because of the non-compliance.

Human Resource personnels are often the first ones to register or discover internal turmoil, decline in productivity of individuals, unhealthy leadership, retention failures, corruption and even nepotism. Most of such issues have various legal implications and angles that need to be considered at a senior level to be addressed. When disastrous and expensive legal proceedings are assessed retrospectively, it is often found that the root was in unaddressed concerns. A good HR can see these concerns ahead of time and address them, therefore saving the resources of the company in a big way. 

Let’s take an example. Let us imagine that in a company the workers who are working overtime are not being paid the extra amount. Non-payment of this amount can result in a legal dispute and the employer being sentenced to 2 years imprisonment or fine of Rs. 1 lakh or both. This can be very well avoided by a smart and legally aware HR manager who frames policies to ensure that it complies with the overtime rules.

Why should HR professionals learn labour laws

• An HR professional needs to be updated about labour laws while doing mundane tasks such as drafting employment agreements, creating appointment letters, complying with labour laws or dealing with disciplinary proceedings etc.
• The knowledge of these laws is important for legal compliance and regulatory adherence. 
• Understanding such laws leads to ensuring fair treatment of employees, builds trust between all the stakeholders and creates a positive work environment where the rights of the workers are respected.
• Companies have in-house legal teams but they are not always readily available to help the HR professionals in their daily tasks. HR professionals should have a basic understanding of these laws so that they can sort out any petty issues before raising them to the legal team.
• In case of violations of these laws, there can be imprisonment, fines, compensations as well as reputational damage. Knowing the legal implications of your actions is the best way to avert such punishments.
• Issues related to labour and employment are important for the overall growth of a company and relying on external consultants blindly to manage these issues may not be the best approach. 
• Adherence to these laws will boost satisfaction of the employees and it promotes retention of the employees which build up the image of the company.
• These laws enable the HR professionals to make informed decisions regarding hiring, firing, promotions and disciplinary actions in a company.

How can knowledge of labour laws help HR professionals in their career

HR professionals who also have labour law knowledge can prove to be an invaluable asset to the company in the following way: 

Legal compliance

Legal compliance is the term which denotes the process of adhering to legal rule and regulations. HR professionals have to ensure that their organisation is adhering to the labour laws of the state. HR professionals ensure legal compliance by staying up to date with the laws and policies and setting up relevant workplace policies in accordance with such laws. By ensuring legal compliance, HR management helps the organisation avoid any penalty and legal disputes. HR professionals develop policies, regularly train management on legal concepts  and maintain accurate records which are noteworthy qualities HR professionals. 

Broadly speaking, an HR professional deals with 3 stages of employee relations i.e. (i) Recruitment and onboarding; (ii) Employee management (iii) Termination or retirement. In all the said stages, HR professionals have to ensure compliance with the applicable labour laws. Let’s understand the roles and responsibilities of HR at these stages.

• Recruitment and onboarding- In this stage, an employment contract is signed which contains clauses for fixed remuneration, leave policy, insurance policy, provisions of bonus and gratuity, if application, fixing working hours etc. There are legal provisions for each of these subjects. So, to have an error free contract an HR professional should be well aware of legal intricacies around recruitment and onboarding of employees. 
• Employee management- Once an employee is inducted into the organisation, his day to day working starts. Here, once again HR has to ensure that the employee is not exploited, he gets equality in pay structure and should be equally eligible for promotion on merits. Along with that he has to ensure that he gets recognition and pay for the overtime works in accordance with law. Further, safety and security of the employees shall be of paramount importance. All this can be properly done if the HR management is well versed with the prevalent labour legislations and rules and regulations thereof. 
• Termination or retirement– Before termination of employment, a prior legal notice has to be served to employees in accordance with Industrial Dispute Act, 1947 (Now, Industrial Relation Code, 2019). Payment of gratuity, if any, has to be done in accordance with provisions of Code on Social Security, 2019. 

In this article, we have explained all the important labour laws which should be complied by all the organisations to avoid expensive lawsuits, penalties and tarnished reputation and goodwill of the organisation. An HR professional must understand and implement these laws in the organisation he is working with. 

Protects the rights of employees

HR professionals have a duty towards protecting the rights of employees. It builds trust and loyalty among the employees, contributes to a high retention rate and creates a positive work environment. Let’s understand the role of HR in protecting rights of employees:

• Grievance redressal mechanism: HR professionals are responsible for establishing a formal grievance redressal mechanism where the employees can freely raise their concerns. HR should ensure confidentiality of the information shared, conduct fair investigation into the matter and take appropriate actions to protect employee’s rights. They can also create feedback mechanisms to improve the company. For example- there is provision of constituting Internal Complaint Committee in POSH Act for complaints of sexual violence. 
• Conduct training for employees: HRs also conduct regular training sessions for employees to make them aware of their rights and responsibilities as per Indian labour laws. They should display the rights of employees in conspicuous places of their workplace.
• Establishing policies: HR is responsible to develop and communicate policies related to rights of employee such as sexual harassment, non-discrimination, health and safety, maternity benefit or working hours etc. There is a company policy on such important matters and it is the duty of HR to ensure that it complies with laws and is in the interest of the employee as well.

By fulfilling these responsibilities in accordance with the labour laws HR can become indispensable to the management of the company. 

Workplace safety

By ensuring that the duties of employers and employees are fulfilled, the HR professional makes sure that the workplace and its environment are employee friendly. HR can ensure workplace safety in the following ways:

• Inspections and audits: HRs conduct regular inspections of the workplace to ensure that there is compliance with safety regulations. It includes checking of machinery and equipment in the workplace, checking fire safety and looking for potential hazards in time. 
• Safety training: HRs are mandated to provide safety training to all the employees about workplace hazards, emergency procedures and use of first aid etc. This training is done periodically by HR and is an important part of workplace safety. 
• Reporting of incidents: To ensure workplace safety it is crucial to establish a procedure to report any incident, occupational disease or injuries. HRs establish such procedures to report and investigate incidents to determine root causes and take corrective actions for it.  

Thus, HR must conduct safety training, safety audits, assess risk and report incidents to foster a culture of employee safety and it can be done right only when HR is aware of the laws regarding it. 

Growth in career

The HR professionals who are aware of their responsibilities and comply with legal regulations can grow rapidly in their career in the following way:

• Knowledge of needs of companies: HRs who know about labour laws get promoted faster as they are better at framing policies, and dealing with regulators and they know what the company needs to do to comply with the law. 
• Better career growth: Knowledge of these laws adds credibility and value to the role of HR in a company, which leads to their career growth and advancement opportunities. With this powerful combination, they can climb up the corporate ladder faster. With the right skill set, networking options and mentorship they can take more leadership roles in the company. The entry level positions such as HR Assistant or coordinator can become HR Manager or Director of HR.  
• Shows adaptability and flexibility: Labour laws evolve with changing needs of the industry, being influenced by legislature and courts and it isn’t easy to stay updated with it. HRs who can adapt to changing laws get an added advantage in their career by staying ahead of the regulatory requirements. 

Thus, knowledge of labour laws can also help HRs to advance their career and become the  company. 

New labour codes 

In India, we have many labour laws in regard to minimum wages, health and safety of workers or maternity benefits etc. There are a set of four new laws which consolidate 29 of old central legislations. If you are an HR manager, below is a list of statutes and regulations you can learn about and help your organisation succeed. Let us understand each one of them in a brief manner.

Code on Wages, 2019

As an HR it is your responsibility to see that the wages are duly credited to the workers on a monthly basis and without unnecessary deductions. You need to make sure that the workers consent to overtime work and are paid fairly for it. This Code is a guide to ensure that any such discrepancies can be avoided. It provides the standards for assessing the remuneration of the employees and ensures that the salaries are governed as per the industry standard. This is an Act meant to give you and your employee equal bargaining powers. It is a must know to avoid any future conflicts.

The Code on Wages, 2019 regulates the wage and bonus payments in all employments. It replaces laws such as:

• The Minimum Wages Act, 1948: Under this Act, the appropriate government may fix the minimum amount of wages for employment if more than 1000 employees are working in an industry in the state. This amount of wages can be fixed and revised by the government.
• The Payment Of Wages Act, 1936: This Act targeted the individuals in industry who earn less than Rs.24000 per month. It aims to provide and regulate timely payment of wages for a specified group of workers.
• The Payment Of Bonus Act, 1965:This Act governs payment of minimum and maximum bonus in establishments. Bonus is reward for work done well. The minimum bonus was 8.33% and maximum was 20%, payable within 8 months from the close of the accounting year. 
• The Equal Remuneration Act, 1976: As the name suggests, this Act provides equal remuneration for both men and women. The employer is under a duty to not discriminate on the grounds of sex and pay remuneration equally for the same amount and nature of work which is done by females.

Application of Code on Wages

This Code is applicable to all employees working all over India. It is applicable to all the factories and establishments unless exempted by the Code. So, it applies uniformly to the organised and unorganised sector. 

Important definitions under Code of Wages

• Appropriate government 

Section 2(d) defines appropriate government as in relation to an establishment which is carried on by or under the authority of the central government, railways, mines, oil fields etc. established by the central Act or central public sector undertaking it would be the central government. In case of any other establishment, it would be the state government. 

• Employee

Section 2(k) defines an employee as any person who is employed on wages by an establishment to do skilled, semi-skilled or unskilled, manual operational, supervisory, technical, clerical work for hire or reward. It also includes a person declared to be an employee by the appropriate government but does not include members of Armed forces or persons engaged under the Apprentices Act,1961.

• Employer

Section 2(f) further defines employer as a person who employs, directly or indirectly, employees in his establishment carried by any department of the government.

• Wage

Wage is defined under Section 2(y) as remuneration which includes salary, allowance or any other form of monetary component. It also includes basic pay, dearness allowance and retaining allowance but does not include bonuses, value of house accommodation, conveyance allowance, house rent allowance and overtime allowance etc.

Other important provisions

Minimum wages 

• Section 3 prohibits discrimination in the matters of wages on the ground of gender. 
• Section 5 states that no employer shall pay wages less than a minimum wage to the employee. Minimum wage is the basic wage, below which workers cannot be paid. It is above floor wage. It is reviewed by the appropriate government every 5 years. 
• Section 6 provides that the appropriate government shall fix the minimum wage for time work or piece work. Wages can be fixed either daily, weekly, fortnightly or monthly. To fix the minimum wage, the appropriate government shall take into account the skill of the workers, arduousness of work and norms as prescribed. 
• Section 9 provides that the Central government decides the floor wage. It is the wage which is decided with regard to the living standard of workers. 
• Section 10 states that if an employee whose minimum wage rate is fixed on a daily basis, works on any day for less than required number of hours, he shall be entitled to wages for the work done on that day as if he had worked for the full day. But if he doesn’t do work due to unwillingness to do work or such other reason then he will not be entitled to wages.
• Section 13 provides that the appropriate government may fix the number of hours for work. A day of rest in a period of 7 days should be provided to the workers and if he works on the day of rest he shall be paid an amount for it which shall not be less than the overtime rate.
• Section 14 states that where an employee works overtime, in excess of normal working hours as fixed, he shall be paid at an overtime rate which shall not be less than twice the normal rate of wages.
• Section 16 provides that the employer shall fix the wage period which can be daily, weekly, fortnightly or monthly. 
• Further Section 17 states that employer shall pay wage:

• At the end of shift, if it is on daily basis,
• On the last working day, if it is on weekly basis,
• Before the end of second day after the end of fortnight if it is on fortnightly basis,
• Before expiry of the 7th day of the succeeding month if it is on a monthly basis.

• Section 18 states that deductions from wages can be made as a result of fines, absence from duty or advances given to employees etc.
• Section 19 states that no fine shall be imposed on an employee for acts and omissions on his part. He shall also be given the opportunity of showing cause against fine. The amount of fine shall not exceed 3% of wages payable in that wage period. If an employee is under 15 years, no fine is to be imposed.

Payment of bonus 

• Section 26 provides that employees with wages not exceeding the amount decided by the appropriate government and who have worked at least 30 days in the accounting year shall be eligible for annual minimum bonus of 8.33% of wages or Rs.100 whichever is higher.
• Section 29 states that the employee shall be disqualified for bonus in case of fraud, theft, violent behaviour or conviction for sexual harassment.
• Section 39 provides that all amount payable to employees as bonus shall be paid by crediting it in the bank account of the employee within 18 months from the closing of the accounting year. This term can be extended to 2 years upon application by the employer to the appropriate government.

Payment of dues

• Section 43 states that every employer shall pay all the amount which is required under this Code to every employee. If he fails to make such payment, then the proprietor of the establishment shall be responsible for it. 
• Section 44 provides that all amounts payable to an employee under this Code if cannot be paid due to death or the employee being unknown, then it shall be given to the nominated person or be deposited as prescribed. 

Provision for offences and punishment 

• Section 54 provides punishment for offences, which is as follows:

Section	Offence	Punishment
Section 54(a)	The employer pays wages to an employee which is less than the amount due	Fine of Rs.50,000
Section 54(b)	Offence of Section 54(a) is repeated again within 5 years from the date of commission of first or subsequent offence	3 months imprisonment and fine of Rs.1 lakh or both
Section 54(c)	If any other provision of this Code is contravened	Fine of Rs.20,000
Section 54(d)	Offence under Section 54(c) is repeated within 5 years from the date of commission of the first or subsequent offence	1 month imprisonment or fine of Rs.40,000 or both

• Section 63 provides that where an employer is charged with any offence in this Code, he can file a complaint to have the other person to be brought before the court for hearing of charge. If the employer proves to the court that he has exercised his due diligence or act was done without his knowledge, consent or connivance, then the other person shall be convicted and he will be discharged from liability. 

Quick compliance checklist for Code on wages, 2019

The HR professional must ensure to comply with the following requirements:

• The Central Government fixes floor wage for different geographical areas which is decided by asking the Central advisory boards and state governments. 
• There is a minimum wage which is to be paid to every worker irrespective of their skills or nature of work. This amount has been reviewed and updated to make it just the cost of living in India.
• The minimum wage is never lower than the floor wage fixed by the appropriate government.
• The maximum number of overtime hours is 125 hours in a quarter across all industries. Workers who work extra shall be entitled to overtime pay at the rate which is twice their regular wage. The consent of employees is required for overtime.
• The Code specifies the frequency of wage payments, whether at the end of the shift, last working day or before the end of the 7th day of the succeeding month. 
• If any issue arises of dismissal or resignation, then wages must be settled within 2 working days.
• If an employee works in an establishment with 20 or more workers and has worked a minimum of 30 days, then a bonus is given to him. It is equal to 8.33% of wages earned during the year or Rs.100 whichever is higher.
• Payment ex-gratia is also paid to employees at the discretion of the employer.
• Employers are required to maintain records of these wages and bonuses paid.
• The Code also prohibits discrimination on the basis of sex in respect to the wages paid to workers. 

Industrial Relations Code, 2020

HR professionals manage employee grievances, mediate their disputes and are responsible for maintaining a positive work environment. They need to keep records and advise the company on how to manage industrial disputes. With an aim to settle the employer-employee disputes amicably, this Code is a tool for peaceful resolution. Mostly the issues such as wages, holidays, working hours etc, or anything that can cause a dispute, which must be adhered to forms a part of this Code. Can you imagine the kind of power that can vest with you if you know how to take care of these disputes? Let us take a look at this Code in brief. The Industrial Relations Code, 2020 is a legislation which consolidates the laws for trade unions, settlement of industrial disputes and conditions of employment etc. It subsumes the previous laws such as: 

• Industrial Disputes Act, 1947: This Act provides for settlement and investigation of industrial disputes by means of conciliation, arbitration and adjudication. It was passed with the objective of maintaining a peaceful work culture in industries. 
• The Trade Unions Act, 1926: A trade union is a group of workers with the purpose of upholding the rights of employees and ensuring that there is no discrimination in the workplace. This Act provides the registration of trade unions, their incorporation and their rights and liabilities. 
• Industrial Employment (Standing Orders) Act,1946: Standing orders set out the rules for employees and working conditions in any employment relationship. This Act was framed with the objective to set out rules for working conditions in factories and industries with an engagement of more than 100 workers. 

Definitions

• Employee

Section 2(l) defines an employee as a person who is employed by an industrial establishment for skilled, semi-skilled, unskilled, manual, operational, technical, supervisory or clerical work for hire or reward. It does not include members of the Armed forces and apprentices under the Apprentice Act, 1961.

• Employer

The term employer is defined under Section 2(m) as a person who employs workers in his establishment, whether directly or through others. In the case of the department of the government it shall be the head of the department, in a factory it is the occupier or manager of it, in other cases the person who has the ultimate control over the affairs of the establishment is the employer.

• Industrial dispute

Section 2(q) defines an industrial dispute as a dispute or difference between employer and employees or workers connected with employment and conditions of labour. It also includes disputes arising out of discharge, dismissal, retrenchment and termination of workers.

• Lay off 

Section 2(t) states that lay off means failure, refusal or inability of an employer to give employment to workers due to shortage of power, coal, materials or natural calamity etc whose name is on the muster roll and has not been retrenched.

• Lock out

Lock out is defined under Section 2(u) as the temporary closing of a place of employment, or when work is suspended, or when the employer refuses to continue to employ a person employed by him.

• Retrenchment

Section 2(zh) states that retrenchment is the termination by the employer of the service of a worker but not as a punishment. It does not include voluntary retirement, age of superannuation, termination due to non-renewal of contract, termination due to ill health or completion of fixed tenure of employment.

• Strike

Strike is defined under Section 2(zk) as when work is ceased by persons acting in combination employed in industry, who together refuse to work or accept employment and it includes concerted casual leave on a day by 50% or more workers.

• Trade union

Section 2(zl) states that a trade union is a combination, whether temporary or permanent, which is formed to regulate relations between workers and employers or between workers or employers.

Important provisions 

Work Committee and Grievance Redressal Committee

• Section 3 provides that in case of industrial establishment of 100 or more workers, the appropriate government may by order require the employer to constitute a Work Committee. The number of representatives of workers in such committees shall not be less than the number of representatives of employers. That means both workers and employers will have equal representation in the work committee. 
• Section 4 states that every industrial establishment of 20 or more workers shall have a Grievance Redressal Committee which shall consist of an equal number of members from the side of workers and employer. The maximum number of members can be 10. The proceeding of the committee shall be completed within 30 days. 

Trade unions 

• Section 5 deals with the registrar of trade unions, who is appointed by the State government. 
• Further, Section 6 deals with the criteria for the registration of trade unions. It provides that any 7 or more members of a trade union may subscribe their names to rules of trade union and apply for registration. Subsection 2 of this Section states that no trade union shall be registered unless at least 10% of workers or 100 workers, whichever is less, employed in industrial establishment are members of trade union. A registered trade union shall at all times continue to have not less than 10% of workers or 100 workers whichever is less, subject to minimum 7 workers as members. 
• Section 10 provides for an appeal against the refusal to grant registration to trade unions. 
• Section 14 recognises negotiation union or council in industrial establishment. Its purpose shall be to negotiate with the employer on matters as prescribed. 

Strikes and lock-outs 

Chapter VIII of the Code deals with strikes and lock-outs. Section 62 states that no person who is employed in an industrial establishment shall go on strike:

1. without giving notice of it to the employer within 60 days before the strike or, 
2. within 14 days of giving such notice,
3. before the expiry of the date of the strike as given in the notice,
4. during the pendency of conciliation or arbitration proceedings or before a tribunal etc.

• Section 63 also provides for when a strike or lockout is illegal. It is considered to be illegal if it is in contravention of either Section 62 or Section 42 (7) which provides that when industrial dispute is referred to arbitration and its notification is issued, the appropriate government may prohibit continuance of strike or lockout in its connection.

Layoff and retrenchment 

• Section 67 provides for the rights of compensation to the workers who are laid off. This amount shall be equal to 50% of the total of basic wages and Dearness Allowance (DA) that would have been paid to them had they not been laid off. 
• There are some cases where compensation is not provided, which is specified under Section 69. It provides that no compensation shall be paid if: 

1. The worker refuses to accept alternative employment in the same establishment from which he has been laid off or,
2. If he doesn’t present himself for work at the establishment at the appointed time during normal working hours at least once in a day, 
3. If such laying off is due to a strike or slow down of production on behalf of workers in another part of the establishments. 

• Section 68 states that it shall be the duty of every employer to maintain a muster roll and make sure that workers make entries when they come to work during normal working hours.
• Under the purview of Section 83, a Worker Re-Skilling Fund is set up by the appropriate government. It shall consist of a contribution of the employer of an industrial establishment of an amount equal to 15 days’ wages of the worker and such other contributions.  This fund focuses on providing skills to employees so that they can transition into new roles.
• Section 84 states that no employee or a worker or trade union, whether registered or not, shall commit any unfair labour practice as specified in Schedule II. Interfering, coercing or refraining workers from exercising their right to form, join or assist a trade union for collective bargaining or showing partiality and granting favours, and discouraging workers from being a part of a trade union are examples of such unfair labour practices. 

Quick compliance checklist for Industrial Relations Code, 2020

The HR professional must ensure to comply with the following requirements:

• It provides that any 7 or more members of a trade union can apply for registration. 
• It explicitly states that strikes can only be called after 60 days’ notice to the establishment and they can’t go on strike until 14 days after giving notice.  
• It establishes an industrial tribunal and a civil court has no jurisdiction for the matters. 
• It establishes a Grievance Redressal Committee, which can have 10 members and shall dispose of the matter within 30 days. 
• There is a Negotiating Union or a Council as the sole group to have a word with the employers of an industrial establishment on the prescribed matters. 
• The employers who fire an employee set up a reskilling fund to help them gain new skills. 

Code on Social Security, 2020

If you are an HR, you need to know the kind of liabilities your organisation might have in case of any labour accident. Although, there are security departments in the factories which ensure that every individual is following the safety guidelines but as an HR, it is your responsibility to ensure that the necessary tools and equipment are provided and complied with. You need to know that all of the regulations and guidelines are created in adherence to this Act so that unnecessary future liabilities can be avoided. This Code provides financial protection to the workers or their dependents in case of an injury or accident at the time of work. It provides for financial compensation in the case of any such accident. In case of non-compliance, the employer is liable for a criminal offence.

It is aimed at providing a kind of social security to the industry employees. The benefits like retirement pension, medical care, housing, family obligations, education, and benefits arising out of insurance, rights of older employees post-retirement, are a few aspects which are covered under this Code.

Also, an employee is entitled to gratuity if he/she has completed one year of service in an organisation. An HR manager is required to know about this Code, so that in case of an unfortunate death of an employee who has completed one year of continuous service in a company, or in case of retiring individuals, basic gratuity is awarded. As we know that knowledge of this Code is paramount for HR professionals, now let us understand the important dimensions and significance of this Code along with its provisions.

Code On Social Security, 2020 deals with the social security of employees and workers in an organised or unorganised sector. It has widened the scope of the earlier statutes and is applicable to everyone on wages in an establishment irrespective of their occupation. It has replaced a number of previous legislation such as:

• Employees Compensation Act,1923: It is an Act to provide payment in the form of compensation to the employees for any injuries they have suffered or disablement caused during any accident while working. 
• Employees State Insurance Act,1948: This Act was framed to help employees get monetary help in the form of insurance in the cases of any disablement, injuries or ailments. 
• Employees Provident Fund and Miscellaneous Provisions Act, 1952: This is a beneficial legislation which is enacted for providing retirement benefits to the industrial worker. This amount is also given to the dependents of the worker in case of his death. Thus, it is aimed at providing social security and stability to the employee and his family.
• Employees Exchange (Compulsory Notification of Vacancies Act), 1959: This Act applies to the compulsory notifications of vacancies to employment exchanges. It doesn’t apply to the agriculture sector, domestic work or unskilled office work.
• Payment of Gratuity Act, 1972: This Act guarantees the payment of gratuity to employees on the termination of their employment after he has served continuously for not less than 5 years in a single organisation. 
• The Unorganised Workers Social Security Act, 2008: It is an Act to provide social security and welfare to the unorganised sector workers which includes home-based workers or daily wage workers etc.
• The Maternity Benefits Act, 1961: This Act provides maternity benefits by providing leave to all women employees.
• Building And Other Construction Workers Cess Act,1996: It is an Act to provide for the levy and collection of cess on the cost of construction which is incurred by the employers in order to increase the resources of the building and other construction workers welfare board under this Act.
• Cine-workers Welfare Fund Act, 1981: It is an Act to provide for the financing of activities to promote the welfare of certain cine- workers  and creates Cine-workers welfare fund. 

Important provisions 

Social security organisations 

• Section 4 states that the central government shall constitute a board of trustees of Employees Provident Fund which shall be the central board and will be responsible for administration of funds. It shall consist of a chairperson, vice-chairperson appointed by the central government, 5 persons appointed by the central government, 15 representatives of the state, 10 persons representing employees and employers and a Central Provident Fund Commissioner. 
• Section 5 provides that the Central Government shall constitute an Employees State Insurance Corporation to provide medical and financial assistance to the employees and their families. A medical benefit committee shall also be composed by the central government for the administration of medical benefits.
• Section 6 specifies that a National Social Security Board is constituted by the central government which has the Union Minister for Labour and Employment as chairperson, Secretary of the Ministry as Vice-Chairman and 40 members nominated by the government. The term of the Board shall be 3 years and it shall meet thrice every year. It will recommend suitable schemes for unorganised workers, gig workers, and platform workers. It shall also advise the central government on issues of administration, monitor social welfare schemes and review the records and expenditures. There shall also be a State Unorganised Worker Board in every state with a term of 3 years and shall meet once in a quarter.
• Section 8 states that any member of the Social Security Organisation shall be disqualified in case of: 

1. Adjudged an insolvent,
2. Found to be lunatic or unsound mind,
3. Convicted of offence of moral turpitude,
4. Default in payment of dues etc.

• Section 14 provides that the central government appoints the Central Provident Fund Commissioner as the CEO of the Central Board and head of the Employees Provident Fund Organisation.
• Under Section 15 the central government may frame schemes for Employees Provident Fund, Employees Pension Scheme, employees deposit linked insurance schemes or any other schemes for this purpose.
• Section 21 states that in an establishment with 100 or more employees, the central government may authorise the employer to maintain a Provident Fund Account. 

Insurance of workers for injuries sustained in the course of employment

• Section 34 raises a presumption that the accidents which are caused in the course of employment shall be presumed to have arisen out of that specific employment only. If an accident happens while commuting to the place of employment, or in premises where he is working, then the presumption is that it arises out of that employment.
• Under Section 35, accidents shall be deemed to arise out of employment or in the course of it even if it is in breach of law or without instructions of the employer if it is done for the purpose of the employer’s business, and it would have been deemed to arise if it wasn’t against the legal principles.
• If an employee gets any disease called occupational disease, then it is deemed to be an employment injury and benefit for it is given under Section 36.
• If an insured person dies due to such employment injury, then his dependents shall be given benefits under Section 38.
• Injured employees are also entitled to medical benefits under Section 39. It can be given in the form of out-patient treatment, attendance in the hospital, by a visit to the home of that person etc. 
• The central government may frame schemes for the unorganised sectors, gig workers and platform workers and their family members under Section 45.
• The state government also constitutes the Employees Insurance Court under Section 48. Any person who is or has been a judicial officer or legal practitioner for 5 years is eligible to be a judge. Section 49 provides matters which are to be decided by the Insurance Court, it includes:

1. Whether a person is an employee or not, 
2. Rate of wages of an employee,
3. Rights of person to any benefit, its amount and duration,
4. Rate of contribution payable by employer
5. Claim against an employer for recovery of contributions etc.

No civil court has the jurisdiction to decide these matters. Further, Section 50 states that this court shall have all the powers of a civil court.

Gratuity

Gratuity is a part of salary, received by the employees from their employers as a token of gratitude for the services performed by them during their employment tenure.

• Section 53 states that gratuity is payable to an employee when his employment terminates after he has given continuous service for at least 5 years:

1. On his superannuation,
2. On his retirement or resignation, 
3. On his death or disablement,  
4. On termination of contract,
5. Any other event as notified by the central government. 

The employer shall pay gratuity to the employee for every complete year of service at the rate of 15 days wages. 

• The amount of gratuity is determined under Section 56. The person eligible for it, gives a written application to the employer and when it becomes payable, notice is given to the employee and competent authority to determine it. It is paid within 30 days from when it becomes payable, otherwise simple interest is charged on it at a rate which should not exceed the rate notified by the central government. If there is any dispute then the competent authority shall decide it after giving the parties opportunity if being heard. 
• Section 57 deals with compulsory insurance. Every employer except the one is under the control of the government shall obtain insurance for his liability to pay gratuity. 

Maternity benefit 

Earlier, The Maternity Benefits Act, 1961 provided maternity benefits by providing leave to all women employees. The Act provided full benefits and protection to the mother and the child during the time of maternity in the form of paid maternity leaves. Now, it is repealed and forms a part of the Code on Social Security. It is extremely important for an HR professional to be able to support their female employees by knowing the legal rights bestowed to pregnant working women. So, let’s get into the provisions that every HR professional should be acquainted with:

• Section 59 provides that no employer shall employ a woman in any establishment during the 6 weeks before the day of her delivery. No woman shall even on her request do work which is arduous in nature or involves long hours of standing or any act likely to cause her miscarriage or adversely affect her health. This provision is applicable for a period of 1 month immediately preceding the 6 week term before her delivery or any period during these 6 weeks when she doesn’t avail of her leave of absence. 
• Section 60 provides maternity benefits to women at the rate of average daily wage during the period she remains absent. To be eligible to claim this benefit, she should have worked in that establishment for a period not less than 80 days in the last 12 months from the date of her expected delivery. The maximum period of maternity benefit is 26 weeks out of which not more than 8 weeks should precede the expected date of delivery.

The maximum period of maternity benefit shall be 26 weeks of which not more than 8 weeks shall precede the date of her expected delivery. In cases, where a woman already has 2 or more children, this period shall be 12 weeks of which not more than 6 weeks shall precede the date of her expected delivery. 

If a woman dies during this period, the maternity benefit shall be payable only for the days before and the date of her death. If a woman has adopted a child below 3 months age, maternity benefit shall be for 12 weeks from when the child is given to the adopting mother. Very importantly, in cases where the nature of her work is that she can easily do it from home, it may be allowed by the employer on terms and conditions as they mutually agree.

• Section 63 states that if a woman is entitled to maternity benefit and dies before receiving it or the employer is liable to pay it under section 60, then it shall be paid to the nominate person or legal representative. 

• Further,  Section 64 states that every woman who is entitled to get maternity benefit shall also receive a medical bonus of Rs.3500 if the employer has not provided her pre-natal confinement and post-natal care free of charge.
• Section 65 provides leave for miscarriage and tubectomy operations. The leave would be for 6 weeks for miscarriage and 2 weeks for operation.
• Section 66 simply states that when a woman delivers a child and returns to work, she shall be given rest and two breaks for the nursing of the child unless the child reaches the age of 15 months. Further, under Section 67 , every establishment which has 50 or more employees shall have the facility of creche and 4 visits per day are allowed to the woman.
• Under Section 69, no deductions shall be made from the normal and daily wages of a woman who is entitled to maternity benefit due to the nature of work given to her under Section 59 or nursing breaks. 
• Section 70 states that a woman who works for remuneration during the period when she is permitted to be absent shall not be entitled to receive maternity benefit. 

Knowing these provisions of this Act ensures legal compliance and avoids legal penalties. It is also necessary for the health and safety of the employee which in turn will retain female employees and be of advantage to the company in the long term. It builds a positive and inclusive image of the company.

Role of HR professionals in compliance with the Maternity benefits 

An HR professional has some responsibilities to implement maternity leave, such as:

• Every pregnant woman should be treated as equal to other employees. Pregnancy cannot be treated as a disability. As HR you should be aware of the procedure of maternal benefits as per the policy of the company. The policies should comply with the provisions stated above.
• The pregnant employees should be made aware about their rights, duration of leave and the process to apply for it.
• It is important to coordinate with the employee and manage their workload if necessary. They should assist in the transition of going to maternity leave.
• When the woman returns after her maternity leave, she should be treated without any discrimination. There should be flexibility, work from home, or remote work or such other arrangements made for the woman.

Employees compensation

Section 73 states that where an accident occurs in an employer’s premises which results in death or serious bodily injury, notice shall be given within 7 days to the competent authority. Under Section 74, if a personal injury is caused by such an accident or disease, the employer shall pay compensation. It will not be the employer’s liability to pay compensation if the injury does not result in disability for a period exceeding 3 days, or it was caused under the influence of drugs, wilful obedience of the employee etc. Section 76 specifies that the amount of compensation shall be 50% of monthly wages if it results in death and 60% in case of total permanent disablement. 

Social Security and cess

• Cess is an additional tax which the government imposes to raise funds for a specific purpose. Section 100 provides that cess shall be levied and collected for the social security and welfare of building workers at a rate not more than 2% but not less than 1% of the cost of construction. The proceeds of it shall be deposited by the local authority to the Building workers’ welfare board. 
• Section 101 deals with interests payable on delay in payment of cess. Under Section 102 the appropriate government may exempt any employer from payment of cess.

Quick compliance checklist for Code on Social Security, 2020

The HR professional must ensure to comply with the following requirements:

1. This Act constitutes some important statutory bodies such as the Employee Provident Fund (EPF), Employees State Insurance Corporation, Social Security Organisations etc. 
2. The EPF will be applicable to every establishment with more than 20 employees. The employer and employee need to contribute 10% of their wages to this fund.
3. The Insurance Corporation provides for medical treatment, establishing hospitals and for the audit cost and expenditure of the insured person. Every person in an establishment must be insured. 
4. The Social Security Fund is for the implementation of welfare schemes for unorganised workers. 
5. It also provides social security for the unorganised sector and gig workers which is an appreciated change.
6. It provides maternity benefits to women in detail for every case and gives the facility of creche in certain cases. Now, the maternity break is for 26 weeks. 
7. The employer of an establishment must maintain records such as wages, leaves, attendance etc., file returns and issue electronic or paper slips at the time of payment. 

Occupational Safety, Health and Working Conditions Code, 2020

HR professionals are responsible for handling workplace safety, addressing health concerns and frame best practices for a healthy workplace. To be able to take care of their employee’s working conditions, they should be aware of this Code. The Occupational Safety, Health And Working Conditions Code, 2020 subsumes 13 previous labour laws and consolidates them into one Code. Some of the previous laws were:

1. Factories Act, 1948: This Act was framed with the motive to establish adequate safety measures and to ensure the health and welfare of workers in the factory. It regulated working hours for workers’ welfare. 
2. The Mines Act, 1952: It is an Act to provide labour and safety for mine workers. It regulates laws related to the betterment of labourers and workmen working in mines. 
3. The Dock Workers (Safety, Health And Welfare) Act, 1986: This legislation deals with the safety and health of dock workers. The appropriate government may inquire into cases of accidents or disease and provide compensation for it.
4. The Plantations Labour Act,1951: This Act provides for the welfare of labour and regulates the condition of work in plantations. It limits working beyond certain hours and restricts women and children from working at night.
5. The Motor Transport Workers Act, 1961: It is an Act enacted for the welfare of the motor transport workers and to regulate their working conditions. It makes it obligatory for the employers of motor transport undertaking to have their undertaking registered.
6. The Contract Labour (Regulation And Abolition) Act, 1970: Contract labour means the employment of labourers through a contract for a specified time period. This Act regulates the functioning of contract labourers to prevent exploitation of these workers. 
7. The Beedi and Cigar Workers (Conditions Of Employment) Act, 1966: As in India, the beedi industry is majorly unorganised, this Act was framed for the welfare of workers in beedi and cigar establishments. 
8. The Building And other Construction Workers Act, 1996: This Act is a social welfare legislation to provide a safe and healthy working environment for workers in construction activities. 
9. The Inter-state Migrant Workers Act, 1979: This legislation stipulates that every migrant worker must be registered with the district magistrate before being employed in an establishment. The employer must also have a licence to employ any migrant worker. 
10. The Working Journalist and Other Newspaper Employees Act, 1955: This legislation regulates and fixes the rate of wages in respect of and for matters connected with working journalists and other newspaper employees. It ensures that their rights are protected and they are given reasonable working conditions. 
11. The Cine-Workers And Cinema Theatres Workers Act, 1981: This Act regulates the conditions of employment of certain cine-workers and cinema theatre workers. 
12. The Working Journalist Act, 1958: It deals with the rights of working journalists and fixes the amount of their minimum wages.
13. The Sales Promotion Employees Act, 1976: This Act regulates certain conditions of service of sales promotion employees in establishments. 

HR professionals should understand the provisions of this Code to be able to protect the safety and health of their workers. Its knowledge helps in managing risk, preventing accidents and maintaining a positive work environment by upholding the rights of employees. If your organisation operates in manufacturing or has factories, it is crucial to be aware of this Code. So, now let’s understand the important provisions of this Act:

Important definitions 

• Contract labour- Section 2(m) defines contract labour as a worker deemed to be employed in an establishment when he is hired by or through a contractor with or without the knowledge of the principal employer. It shall also include inter-state migrant workers but doesn’t include workers who are regularly employed by contractors for his establishment and get periodical increments in pay and other welfare benefits. 
• Employee- Section 2(t) gives definition of employee as given by above stated laws, a person employed on wages to do skilled, semi-skilled, unskilled manual work etc.  Similarly, an employee is defined under Section 2(u) as a person who employs persons in his establishment whether directly or indirectly.
• Factory- Section 2(w) defines a factory as premises including precincts where 20 or more workers are working on any day of the previous 12 months and the manufacturing process is carried on some of its part, or, where 40 or more workers are working on any day of previous 12 months and similarly manufacturing is carried. 

Important provisions 

Duties of employer and employees

The duties of employer and employee are crucial for HR as when employers fulfil their duties towards employees it ensures legal compliance and a positive work culture. The role of HR is to monitor, enforce and support them to fulfil their duties that enhance employee satisfaction and lead to organisational success. In the same line, it is also important for HR professionals to know the legal rights of employees so as to prevent any infringement of such rights. So let’s understand the duties of employers as well as the rights and duties of employees. 

• Duties of employer

Section 6 provides that every employer shall have the following duties:

1. To ensure that the workplace is free from hazards which are likely to cause injury or occupational disease to employees, 
2. To comply with the safety and health standards under this act or rules or orders etc. 
3. To provide free health examinations or tests to employees as specified by the appropriate government, 
4. To maintain a safe work environment for the overall health of employees, 
5. To ensure disposal of any hazardous and toxic waste etc. 

The duties of an employer in regard to a factory, dock, building or mine shall be as follows:

1. Maintain the plant and system of the workplace, ensure its safety and health,
2. Make arrangements in the workplace for safety and absence of risks to health, handling, storage and transportation of articles and substances,
3. Provides for infraction, instruction, training and supervision for safety of employees, 
4. Maintain all places in a safe condition and provide access to and egress from such places, 
5. Monitor and maintain the working environment. 

• Duties of employee

Section 13 provides for the duties of employees at the workplace, which include:

1. Taking reasonable care of the health and safety of employees, 
2. Compliance with health and safety requirements, 
3. Cooperate with the employer to comply with the statutory requirements, 
4. Report about the unhealthy situation to the employer,
5. To not interfere with the misuse or neglect of any appliance, convenience or thing provided at the workplace, 
6. To not wilfully without reasonable cause do anything likely to endanger himself and others, 
7. Perform other duties as prescribed. 

• Rights of employees

Section 14 deals with the rights of employees. It shall include the right to obtain information about the employee’s health and safety from the employer and represent to the employer either directly or through a member of the safety committee regarding inadequate provision for safety and health in the workplace. In case of such existence of immediate danger, the employer shall take immediate remedial action and send a report to the Inspector-cum-facilitator. 

Section 15 also specifies that no person shall intentionally or recklessly interfere with or damage anything which is given for health, safety or welfare. 

Occupational safety 

• Section 16 provides for the National Occupational Safety and Health Advisory Board. It is constituted by the central government to perform functions such as: advising the government on standards, and rules under this code, implementation of this law, framing policies and programmes in relation to it, or any other such matter. Their term is 3 years. Similarly, under Section 17 the state government constitutes the State Occupational Safety and Health Advisory Board.
• Under Section 18, the central government shall declare standards on occupational safety and health for the workplace. These include the norms for hazards, their symptoms, exposure, medical examination of employees or such other safety and health measures at the workplace. 

Health, safety and working conditions 

• Section 23 states that the employer shall be responsible for maintaining health, safety and working conditions in his establishment which includes hygiene, ventilation, humidification, potable drinking water, an environment free from dust etc. 

Welfare provisions 

• Similarly, Section 24 deals with welfare facilities in the establishment such as:

1. Washing facilities for male and female employees separately, 
2. Bathing places and locker rooms,
3. Sitting arrangements, facilities of canteen, 
4. Medical examination in case of employees in mines, 
5. First aid boxes readily accessible during work hours etc.

The central government shall also provide ambulance rooms, uniforms, raincoats, suitable separate shelters, restrooms, welfare officers in factories or mines with 250 or more workers etc. The crèche facility is to be made available for children under the age of 6 years. 

Hours of work and leave 

• Section 25 specifies the number of hours for workers which is 8 hours a day. Section 26 states that no worker shall be allowed to work in an establishment for more than 6 days in 1 week. 
• Section 27 provides that there shall be double wages for overtime work done by the employee. Section 28 deals with night shifts and Section 29 prohibits overlapping shifts. 

Employment of women 

• Section 43 states that women shall be entitled to be employed in all establishments and with their consent before 6 a.m. and after 7 p.m. 
• Further, Section 44 provides that if the appropriate government considers that employing women is dangerous for their health and safety in an establishment, then it may require employers to provide adequate safeguards for it.
• Section 70 states that no person who is below the age of 18 years shall be allowed to work in a mine. No apprentices or trainees who are below the age of 16 years, may be allowed to work in a mine except under proper supervision.

Quick compliance checklist for Occupational Safety, Health and Working Conditions Code, 2020

The HR professional must ensure to comply with the following requirements:

1. It fixes the minimum number of working hours as 8 hours per day. 
2. It includes provisions for the constitution of the National Occupational Safety and Health Advisory Board. 
3. It simplifies the registration process for establishments with 10 or more employees. 
4. It has changed the definition of a factory with 40 workers instead of 20 workers.
5. This Act provides some rights and duties of employers and employees.
6. It has expanded the list of benefits to inter-state migrant workers as well. 
7. It provides for mandatory free health checkups for workers who have attained the age of 45 years and are working in industries such as factories, mines, and plantations etc. 
8. Letters of appointment are appointed for all workers. It is a mandatory document which formalises employment. 

Other laws relevant for HR professionals 

The Sexual Harassment of Women At Workplace (Prevention, Prohibition and Redressal) Act, 2013 

This Act (hereinafter referred to as POSH Act, 2013) has been a very important legislation which fosters respect and equality among the employees. In most of the cases, HR managers are the first recipients of a sexual harassment complaint. They are also actively involved in drafting of sexual harassment policies and formation of Internal Complaints Committee as per the provisions of POSH Act, 2013. HR managers are also responsible for the performance of the Internal Complaints Committee. What if the committee completely botched up a hearing? Would that reflect well on the company or the HR manager? Hence, even if the HR manager is not a part of the Internal Complaint Committee, he or she should have a good understanding of the law, compliances and procedures involved. So, let’s dive into understanding this law:

The Sexual Harassment of Women At Workplace (Prevention, Prohibition and Redressal) Act, 2013 is framed to punish and provide redressal and protection against sexual harassment to women at workplaces. It also provides that sexual harassment violates the fundamental right to equality of the aggrieved women under Article 14 and Article 15 as well as their right to live with dignity under Article 21 of the Indian Constitution.

Definitions 

• Aggrieved woman

Section 2(a) defines an aggrieved woman as a woman of any age who in relation to a workplace, whether she is employed or not, alleges sexual harassment by the respondent. In relation to a dwelling place or a house, a woman of any age who is employed in such a dwelling place or house is the aggrieved woman. 

• Employee

Section 2(f) states that an employee means a person who is employed in a workplace whether on a regular, temporary, ad hoc or daily wage basis. It also includes contract workers, trainees, apprentices and probationers. 

• Employer

Section 2(g) defines an employer as the head of any department, establishment, organisation, institution, office etc, or the person responsible for management, supervision and control of the workplace.

• Sexual harassment 

The term sexual harassment is defined under Section 2(n) as an unwelcoming act or any such behaviour which includes:

1. Physical contacts and advances, 
2. A demand or request for sexual favours,
3. Making sexually coloured remarks, 
4. Showing pornography, 
5. Any other unwelcome physical, verbal or non-verbal conduct of a sexual nature.

• Workplace

Section 2(o) defines the term workplace as: 

1. Any department, organisation, institution, office, branch or unit which is owned, and controlled whether wholly or substantially financed by the appropriate government or local authority.
2. Any private actor organisation, society, undertaking etc, which carries on commercial, professional, educational, industrial or financial services which also includes production, supply, sale, distribution or service,
3. Hospitals or nursing homes are also included,
4. Sports institutes, stadiums, whether residential or not used for training or other related activities,
5. Any place that is visited by an employee arising out of or during the term of employment,
6. A dwelling place or a house.

Important provisions 

Prevention of sexual harassment

Section 3 simply talks about the prevention of sexual harassment. It provides that no woman shall be subjected to sexual harassment at the workplace. Any implied or explicit promise of preferential treatment, threat of detrimental treatment, interference with her work, creating hostile or intimidating her, or humiliating her may amount to sexual harassment. 

Constitution of  Internal Complaints Committee

The Internal Complaints Committee is constituted under Section 4 of the Act. Every employer of a  workplace shall by a  written order, constitute this committee which shall consist of the following:

1. The presiding officer who will be a woman working at a senior level at the workplace,
2. Minimum 2 members from the employees who are committed to the cause of women or have relevant experience in social work or possess legal knowledge, 
3. 1 member from a non-governmental organisation which is committed to the cause of women or has dealt with issues of sexual harassment.
4. It is pertinent to mention that at least one-half of these members shall be women and the term of presiding officer shall be 3 years.

• Local committee

Under Section 6, in every district, there shall be a local committee constituted by the district officer to receive complaints of sexual harassment from establishments where ICC is not constituted as there are less than 10 workers. It shall consist of the following:

1. A chairperson who would be a woman working in the field of social work or committed to the cause of women,
2. One member of the bloc, 
3. Two members from NGOs (at least 1 woman)
4. Officer dealing with social welfare or women and child development as an ex-officio member. The term of their tenure shall be 3 years.

Complaint by aggrieved woman and inquiry thereof

Section 9 states that any aggrieved woman can file a written complaint of sexual harassment to the ICC or local committee within period of 3 months from the date of the incident. This term can be extended not for more than 3 months if the committee is satisfied that there were circumstances justifying it. If a woman is not able to file a complaint due to her physical or mental incapacity, death or other condition, then her legal heir may make a complaint.

• Under Section 10, ICC or local committee may before starting an inquiry into the complaint, try conciliation at the request of the aggrieved woman. Compensation or monetary settlement shall not be the basis of conciliation. 
• Section 11 provides that an inquiry into a complaint shall be made by the committee and forwarded to the police within 7 days. For this purpose, the committee shall be given the same powers as are vested in a civil court. This inquiry is to be completed within 90 days.
• Under Section 13, when the inquiry is completed, the committees shall prepare a report of its findings and submit it to the employer or district officer within 10 days from the date of its completion. If the conclusion is that the allegation against the respondent is true and is proven, then action will be taken against him for the offence of sexual harassment or deduct his salary. This action shall be taken within 60 days.
• The aggrieved woman is awarded compensation which is determined under Section 15. The factors to determine it are such as mental trauma, loss of career opportunities, medical expenses, income and financial status and feasibility of payment etc.

Duties of employer at the workplace 

Every employer has certain duties which are specified under Section 19. The following are the duties of the employer:

1. Provide a safe working environment,
2. Display the penal consequences of sexual harassment at a conspicuous place in the workplace,
3. Organise workshops and awareness program aimed to sensitise employees
4. Assist in securing the attendance of respondents and witnesses before the committees,
5. Give necessary facilities to the committees to assist in complaints and conducting inquiries,
6. Assist the woman if she chooses to file a complaint under IPC or any other law,
7. Treating sexual harassment as misconduct and initiating action against it,
8. Monitor the submission of reports by committees to be given on time.

To know more about the requirements of this Act, here is a useful resource: An exemplary handbook on sexual harassment compliance.

Role of HR professionals in POSH compliance 

HR professionals play a very important role in addressing and preventing sexual harassment in the workplace. Here are some simple yet effective ways to deal with it:

1. HR professionals should be trained to be able to understand the law related to sexual harassment and they should be well versed with the company’s sexual harassment policy. The need to know how to handle complaints by aggrieved women and take disciplinary action against the respondent.
2. HR professionals are also involved in the framing of the sexual harassment policy of the company, so they should remember to clearly define what is sexual harassment and state remedies for the aggrieved party. It helps the aggrieved woman possess faith that her concerns will be fairly addressed by the company.
3. HR professionals should also ensure the constitution of ICC is done in compliance with the laws. 
4. It is also their duty to make sure that all the complaints related to sexual harassment are resolved effectively. 
5. It is their job to create awareness about the policy and laws on sexual harassment. There should be training sessions and sensitisation programs for all employees. They should foster a culture where the bystanders speak up against such offences and it is not tolerated at any cost.
6. All complaints of sexual harassment should be taken seriously and be treated confidential. HR professionals should proactively work with employees, regularly seek their feedback and incorporate their suggestions.

Implementing sexual harassment laws at the workplace can be quite a challenge at times. HR professionals should learn more about it and in fact, develop specific expertise and sensitivity regarding this. It would not just act as a huge advantage to your organisation but would be of immense help to you personally. More and more companies look for HR professionals who are well-equipped with the knowledge and skills to tackle sexual harassment at the workplace. You could be the ideal choice if you are specialised in such a rare skill.

Child labour regulations 

There are various provisions in our laws which specifically deal with the rights of children. Article 21A, Article 51(k) of the Constitution deals with the right to education for children. We have Article 23 and Article 24 which directly prohibits child labour under the age of 14 years. Further, the Acts such as Factories Act, 1948, Mines Act, 1952, Child and Adolescent Labour (Prohibition and Regulation) Act,1986, Juveniles Justice (Care and Protection) of Children Act, 2000, Right Of Children To Free And Compulsory Education Act, 2009 supplements the Constitutional provisions.

The Child and Adolescent Labour Act,1986 is a very important piece of legislation which prohibits employment of children in all occupations and adolescents in hazardous occupations. 

Important provisions 

• Section 2(ii) states that any person who has not reached the age of 14 years is a child. Section 3 of the Act states that there are 57 jobs and 13 activities given in the schedule which are completely forbidden from employing children, for example: handling of toxic or explosive material, mines, plastic units, domestic servants, bidi making process, manufacturing of cement, glass, soaps etc.
• As per Section 3A which was added by the 2017 Amendment Act, no adolescent shall be employed or permitted to work in hazardous occupation. The central government may specify the nature of non-hazardous work which they may be permitted to do. Section 2(i) defines adolescent as a person who has completed the age of 14 years but has not completed 18 years of age.
• Section 7 provides that no adolescent shall be permitted or required to work in an establishment in excess of the fixed number of hours. The maximum number of hours shall be 3 and no adolescent should work for more than 3 hours before he has rest for at least 1 hour. No adolescent shall be required to work between 7 p.m. and 8 a.m. and to work overtime.
• Under Section 8, every adolescent employee shall be given 1 whole day as holiday. 
• If in any establishment, an adolescent was employed or permitted to work then the occupier shall send a written notice regarding it to the Inspector.
• Section 13 provides that the appropriate government may make rules for health and safety of adolescent employees. It shall include provisions for cleanliness, ventilation, lighting, drinking water, urinals and protection of eyes etc.
• Punishment is provided under Section 14. Section 14(1) provides that when a person employs any child or permits him to do work in violation of Section 3, punishment would be 6 months imprisonment which may extend to 2 years imprisonment or fine Rs.20,000 which may extend to Rs.50,000.

Section 14(1A) states that when an adolescent is employed or permitted to do work in violation of Section 3A, its punishment would be the same as above, imprisonment of 6 months extending to 2 years or fine Rs.20,000 which may extend to Rs.50,000.

Further, Section 14(1B) provides that notwithstanding stated above, parents or guardians of a child or adolescent shall be liable to punishment if it is their first offence. 

If a person violates Section 3 or 3A twice, then he shall be punishable with imprisonment for a term not less than 1 year but may extend to 3 years. If a parent or guardian commits such offence twice, then its punishment shall be a fine of Rs.10,000.

It is important that an HR manager is well aware of the legislation and makes significant contributions through various policies. Legal awareness and human resources if combined can produce a very inclusive workspace which could significantly enhance a company’s productivity. 

Important labour law judgments for HR professionals

There are various important judgments on labour laws which HR professionals need to know. Let’s take a look at some of these judgments: 

Randhir Singh vs. Union of India (1982)

In this case, R is a driver with the Delhi Police force and he claimed that his salary was not as per the standard with other drivers. It was held that the Constitution of India through Article 39(d) provides equal pay for equal work. And R should be paid equally as other drivers in Delhi Administration. 

B Mohan Reddy vs. A.P.S Co-op. Marketing Federation (1990)

In this case, it was held that the Payment of Gratuity Act does not authorise the employer to withhold gratuity for reason of negligence or unauthorised leave. It can be withheld only if services of employees are terminated for willful omission or negligence which causes damage, loss or destruction to employers property. 

Syndicate bank and ors. vs. K. UMesh Nayak (1995)

In this case, the Supreme Court held that strike could be held illegal if it violates the provisions of Industrial Disputes Act, 1947. In order to decide the legality of a strike, the court must consider demands of workers and whether their issues are justified or not.  It was held that strike is an outcome of a long struggle between employer and employee and the rights of workers should be respected. Thus the employer was ordered to pay workers for the strike period. 

Dr. Sohail Malik vs. Union of India (2023)

It was held in this case that The Sexual Harassment of Women At Workplace (Prevention, Prohibition and Redressal) Act, 2013 is applicable even in cases where the complainant and harasser work in different departments. It is a significant judgement to ensure protection of women at the workplace. 

To know more about the judgments which are important for HR professionals, click here. 

Conclusion 

It is deciphered from this article that understanding and implementing key labour laws is crucial for HR professionals. It ensures legal compliance through the knowledge of the laws such as: labour laws, POSH, Maternity Benefits Act etc. HR professionals who possess this knowledge can be extremely helpful to ensure that the company adheres to the laws and regulations. This in turn reduces the risk of disputes and promotes policies that safeguard the rights of employees. These laws are made in the best interests of the employees. These laws promote fair treatment of employees; they include provisions for their leaves, wages, compensation, safe working conditions etc. It builds trust and loyalty among the employees, contributes to a high retention rate and creates a positive work environment. By staying informed about these laws, HR professionals can mitigate legal risks and make strategic decisions regarding hiring, termination, promotions or employee relations etc. This helps the company in framing policies and rules to align with the laws and be legally sound. It builds the reputation of the company and also creates an inclusive work environment. 

Having sufficient knowledge of the labour laws and other laws relevant for the employees is a trait which also adds credibility to the career prospects of an HR professional. It denotes that he has expertise over law and their knowledge can be a valuable asset for the company. Thus, HR professionals are fundamental to building employee relations in a company. They sort conflicts and disputes, maintain a harmonious work environment, boost morale and productivity of the employees.

Frequently Asked Questions (FAQs)

What are the key labour laws that an HR professional should be aware of?

Some of the major labour laws that an HR professional must be aware of include the Code on Wages, 2019, the Industrial Relations Code, 2020, Code on Social Security, 2020, Occupational Health, Safety and Working Conditions Code, 2020, Child Labour Act, 1986 etc. 

Why is it important for HR professionals to understand labour laws?

HR professionals need to be aware of these laws to ensure compliance, operational efficiency, and decision-making, professional growth, employee satisfaction etc.  

How can HR professionals stay updated with the changes in these laws?

HR professionals should be aware of the amendments in these Acts and Codes, attend workshops, seminars and training sessions which help them increase their knowledge. They should subscribe to online newsletters, online resources etc. on these laws. Also, there are courses and diplomas specifically tailored for HR professionals for which one can have a glance over here.

Can HR policies be framed stricter than labour laws?

Yes, it is possible as long as the labour laws are not violated.

What are the major changes brought by the new labour laws?

Changes in the Code on Social Security, 2020:

1. Earlier there was no time period for initiating proceedings to determine dues from the employer, now the limitation period for it is 5 years. 
2. The term ‘fixed term employee’ is now defined and can also claim gratuity benefits. 
3. Social security extends to unorganised sector, gig workers and platform workers. 

Changes in the Industrial Relations Code, 2020:

1. It has changed some important definitions such as worker, employee, industrial dispute etc. 
2. It has changed provisions related to lay off and retrenchment, strikes and lockouts. 
3. It introduced a reskilling fund, voluntary arbitration for workers etc. 

Changes in the Code on Wages, 2019:

1. Earlier Minimum Wages Act, 1948 was applicable only to employees under wages of Rs.24000 now this threshold is removed.
2. It provides equal remuneration to male and female employees. 
3. It has a consolidated definition of wages. 

Changes in the Occupational Safety, Health and Working Conditions Code, 2020:

1. Changes have been introduced for the employer to take consent from the employee for overtime work, for which the worker shall receive twice the rate of wages. 
2. There was a provision for regular checkups for employees. 
3. There is the appointment of welfare officers, provisions for canteen facilities etc. 

What steps can HR professionals take to ensure workplace safety in accordance with the labour laws?

An HR professional can develop workplace safety policies, conduct regular training for employees and establish a clear process for reporting and addressing workplace accidents. 

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