Statutory Compliance Of Manufacturing Industry
Written by Diya Raj Dt. October 30th, 2021
Statutory compliance refers to practices of a company to stay compliant with laws passed with a local, state, or central government. Manufacturing industries involve a lot of human resources and potential in the form of its many labourers, employees, and workers. Therefore, it becomes essential for organizations in the manufacturing sector to protect the interests of their workforce.
Various Statutory Compliance to be followed by the Industries :
- The Apprentices Act, 1961
- The Child Labour Act, 1986
- The Industrial Dispute Act, 1947
- The Minimum Wages Act, 1948
- Trade Unions Act, 1926
- The Factories Act, 1948
- Workmen’s Compensation Act,1923
The Apprentices Act, 1961
The Apprentices Act deals with the individual going under training or in the course of training.
A person shall not be qualified for being engaged as an apprentice to undergo apprenticeship training in any designated trade, unless he
- is not less than fourteen years of age
- satisfies such standards of education and physical fitness as may be prescribed
The Contract of apprenticeship training must be signed before entering into an apprenticeship training.
The Child Labour Act, 1986
The Industries have to strictly comply with the child labour prohibition and Regulation Act 1986.The Industry should not employ children below fourteen to work and no employment for doing hazardous work.
The Industry Dispute Act, 1947
This Act deals with the dispute between employer and employee. The objective of the Industrial Disputes Act is to secure industrial peace and harmony by providing machinery and procedure for the investigation and settlement of industrial disputes by negotiations.
The Minimum Wages Act, 1948
The Minimum Wages Act, 1948 is a Central legislation aimed at statutory fixation of minimum rates of wages in the employments. This Act deals with the minimum wages that have to be paid or given to the labourers.
Trade Unions Act, 1926
This particular Act deals with the trade union formed by the workers to represent their working condition or to put forward their demand which they desire to get fulfilled by the employer.
The Act mentions the concept of collective bargaining which enables the workers to negotiate with the employers regarding working salaries, working condition, benefits and compensation.
The Factories Act, 1948
The Act contains provisions on the health, safety, working hours, leave and welfare of workers; inspecting staff for factories; hazardous processes in factories; the employment of young persons (children and adolescents); and penalties for contravening the provisions of the Act.
The Working hour shall not extend to more than 9 hours daily and 48 hours weekly and a
special provision regarding employment of women before 6 P.M and after 7 A.M.
Workmen’s Compensation Act,1923
This Act deals with the compensation provided to the workers who are injured in an accident in his course of employment or gets occupational diseases peculiar to his occupation.
This Act is enacted to provide the workmen with the compensation as an aid for their
Other Statutory Compliance to be followed by Industries
Employees’ Provident Funds
EPF & ESI- Forms used and Legal Compliance
All business entities with 20 or more than 20 employees are mandated to be members of the EPFO.
Business Entity means:
- Every establishment which is a factory engaged in any industry specified in Schedule I of this Act.
- Any other establishment
- Such classes of establishments which the CG may notify (even in the case, where number of employees is less than 20.
Employees who are eligible for EPF:
Employees who drawing less than Rs. 15000/- per month.
Employees drawing more than Rs. 15000 per month with permission of Assistant PF commissioner.
Benefits available to employees:
- Saving of huge amount of money in the long term time at the time of retirement
- During an emergency, it can help the employee
- One time investment does not require
- Deductions made on monthly basis from the employee’s salary.
You can withdraw the maximum amount of 90% of the total corpus, if you choose to withdraw the corpus 1 year before your retirement.
The event of loss of job has also been considered in the latest EPF withdrawal rules. According to these rules, 75% of the accumulated EPF corpus can be withdrawn 1 month after leaving the job. The remaining 25% can be withdrawn after 2 months of unemployment.