Labour laws are very important aspect of running any business organization and also it is very important that the company or the business follows the labour compliance.
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Labour laws are very important aspect of running any business organization and also it
is very important that the company or the business follows the labour compliance. Our
government carefully scrutinizes each and every aspect of labour laws to make sure
that it is not violated. Dealing with labour laws and the requisite compliance is quite
complex. Many companies hire management consultants, consulting firms or a person
who fills in the role with relevant experience and qualification.
The person who handles the labour laws and compliance has to be updated with
labour laws in order to maintain the compliance. Labour laws clarify and codify a
company or a business enterprise’s obligation towards employees.
Former President of India Late Mr. V.V. Giri once said about industrial legislation - “a
provision for equitable distribution of profits and benefits emerging from industry,
between industrialists and workers and affording protection to the workers against
harmful effects to their health safety and morality.”
It may look like a hassle for your company but it keeps the employees safe, healthy,
happy and satisfied. In other words, it’s a motivating factor for the employees to be
Below mentioned are some of the reasons why labour laws are important in India:
●Accurate Classification - For Example, a person working as an independent
contractor is the one who is working independently does not come under the
purview of most of the labour laws and company is not required to pay taxes
for independent contractors. The labour law prevents the employers to classify
their employees as independent contractors for saving money. Labour laws
ensure that everything is in order and employees are not overburdened with
●Child Labour - Child labour is a serious concern in India. In most of the cases, a
child is exploited by the business owners and at times is kept as a slave to work
in factories. The factories act of 1948 bars the children below 14 years of age to
work in factories. The business owners who are found violating the rule will face
●Working Hours - According to the factories act of 1948, a person can’t work for
more than 48 hours every week and not more than 9 hours on a daily basis. It is
important for the employers to keep a record of total number of working hours of
an employee every month.
●Protects Employees - Labour laws take care of hazardous conditions and bad
treatment given to a person by the employer. Every company must provide the
necessary security for a person working in a hazardous sector such as mining
and construction. It ensures that every worker is safe and protected against the
Aforementioned are some of the reasons why labour laws are important in India. It is
eventually a boon to all the workers as it ensures their safety and well-being.