Labour Law Compliance: A Checklist for Employers

Labour compliance is cumulative: obligations attach at different headcounts, and the ones you crossed quietly are usually the ones that surface in an inspection.

From your first employee

Register the establishment under the applicable State Shops and Establishments Act. Issue written appointment letters. Maintain attendance and wage registers, and keep them current rather than reconstructing them later.

As headcount grows

Provident fund and employees' state insurance registration become applicable once the prescribed employee thresholds are crossed. Gratuity obligations attach at the prescribed threshold. A written policy against workplace sexual harassment and a properly constituted Internal Committee are required once the threshold under the relevant Act is met.

The recurring work

Monthly contributions and returns, annual returns under the applicable Acts, and statutory registers kept up to date. Set calendar reminders; the penalties are for lateness as much as for non-payment.

Where employers get caught

Treating employees as consultants to avoid contributions is the most common exposure, and the one that unwinds most expensively when tested. Classification follows the substance of the relationship, not the label on the contract.

Thresholds and rates change. Speak to us to confirm what currently applies to your establishment.