Labour Laws HR Employee Should Know
Companies those who are going to be established need to know some laws and regulation before beginning. As HR you must these because lot of employees lies on them. HR act as main source while hiring new talent, retaining of old employees, ensuring employee welfare, work ethics, to move with upcoming scenario in latest job market
1. Code on Wages, 2019 :-
Minimum Wages & Timely Salary Payment
* Employees must be paid on time (before the 7th of the next month).
* Ensure no unauthorized salary deductions.
2. Payment of Wages Act, 1936 :-
Salary Slips Are Mandatory!
* All employees must receive monthly salary slips.
* Salaries should be paid via bank transfer or cheque (not cash).
3. Shops & Establishments Act (State-Specific) –
Working Hours & Leaves
* Max 9 hours/day, 48 hours/week.
* Weekly off & public holidays must be provided.
4. EPF Act, 1952-
Provident Fund (PF) for Employees :-
* Mandatory for companies with 20+ employees.
* Employer & Employee contribute 12% each.
5. ESI Act, 1948 –
Health & Insurance Benefits:-
* Mandatory for companies with 10+ employees.
* Covers medical, maternity & disability benefits.
6. Maternity Benefit Act, 1961 –
26 Weeks Paid Maternity Leave :-
* No termination during maternity leave.
* Nursing breaks for new mothers.
7. Payment of Gratuity Act, 1972-
Gratuity After 5 Years of Service :-
* Formula: (Last Salary x 15 days x No. of Years) / 26.
* Must be paid within 30 days of resignation.
8. Industrial Disputes Act, 1947 :-
* No Wrongful Termination
* Employees must be given a 1-month notice or compensation.
9. POSH Act, 2013 :-
Workplace Harassment Prevention
Salary Ranges In Different States As Per Labour Law
| Minimum Wages for Different States in India (per month) (in INR) | |||
| State Name | Unskilled Worker | Skilled Worker | Highly skilled Worker |
| Andaman and Nicobar Islands Effective from: Jan 1st, 2024 | 16,328 | 21,632 | 23,790 |
| Andhra Pradesh Effective from: April 1st, 2024 | 13,248.50 (Zone I) 12,498.50 (Zone II) 12,248.50 (Zone III) | 15,248.50 (Zone I) 14,248.50 (Zone II) 12,748.50 (Zone III) | 15,748 (Zone I) 14,748 (Zone II) 13,248 (Zone III) |
| Arunachal Pradesh Effective from: April 1st, 2023 | 6,600 | 7,200 | NA |
| Assam Effective from: June 1st, 2023 | 9,800.50 | 14,239.35 | 18,307.05 |
| Bihar Effective from: April 1st, 2024 | 10,660 | 13,494 | 16,484 |
| Chandigarh Effective from: October 1st, 2023 | 13,659 | 14,334 (I) 14,109 (II) | 14,734 |
| Chhattisgarh Effective from: October 1st, 2023 | 10,100 (Zone C)10,360 (Zone B)10,620 (Zone A) | 11,530 (Zone C)11,790 (Zone B)12,050 (Zone A) | 12,310 (Zone C)12,570 (Zone B)12,830 (Zone A) |
| Dadra and Nagar Haveli Effective from: October 1st, 2022 | 9,237.80 | 9,653.80 | NA |
| Daman and Diu Effective from: April 1st, 2023 | 11,466 | 12,012 | NA |
| Delhi Effective from: October 1st, 2023 | 17,494 | 21,215.00 | NA |
| Goa Effective from: October 1st, 2023 | 13,598 (Zone A) 13,468 (Zone B) | 16614 (Zone A) 16484 (Zone B) | NA |
| Gujarat Effective from: April 1st, 2024 | 12,662 (Zone I) 12,376 (Zone II) | 13,234 (Zone I) 12922(Zone II) | NA |
| Haryana Effective from: January 1st, 2024 | 10,924 | 12,646.12 (Class A) 13,278.44 (Class B) | 13,942.36 |
| Himachal Pradesh Effective from: April 1st, 2023 | 11,250 (I) 10,429 (I) | 13,062 (I) 12,006 (II) | 13,592 (I) 12,580 (II) |
| Jammu and Kashmir Effective from: October 17th, 2022 | 8,086 | 12,558 | 14,352 |
| Jharkhand Effective from: October 1st, 2023 | 9,162.11 | 12,652.78 | 14,615.83 |
| Karnataka Effective from: April 1st, 2024 | 15106.23 (Zone I) 14,554.43 (Zone II) 14,028.90 (Zone III) 13,528.40 (Zone IV) | 17,539.67 (Zone I) 16,871.99 (Zone II) 16,236.11 (Zone III) 15,630.50 (Zone IV) | 18,941.80 (Zone I) 18,207.35 (Zone II) 17,507.88 (Zone III) 16,841.71 (Zone IV) |
| Madhya Pradesh Effective from: April 1st, 2024 | 11,800 | 14,519 | 16,144 |
| Maharashtra Effective from: January 1st, 2024 | 13,089 (Zone I) 12,493 (Zone II) 11,896 (Zone III) | 14,700 (Zone I) 14,104 (Zone II) 13,508 (Zone III) | NA |
| Nagaland Effective from: June 14th, 2019 | 5,280 | 7,050 | NA |
| Punjab Effective from: September 1st, 2023 | 10,736.75 | 12,413.75 | 13,445.75 |
| Rajasthan Effective from: July 1st, 2021 | 6,734 | 7,358 | 8,658 |
| Tripura Effective from: October 1st, 2023 | 7,420.61 | 9,104.13-12,289.91 | NA |
| Uttar Pradesh Effective from: October 1st, 2023 | 10,275 | 12,661 | NA |
| Uttarakhand Effective from: April 1st, 2024 | 12,391-12,539 | 13,838-14,023 | NA |
| West Bengal Effective from: January 1st, 2024 | 9,841 (Zone A) 9,210 (Zone B) | 11,909 (Zone A) 11,142 (Zone B) | 13,099 (Zone A) 12,258 (Zone B) |
Conclusion
As HR professionals, stay tuned with these mentioned laws and rule is mandatory and non-negotiable. It is not only helps the organization from legal issue but also used to create a culture of honesty and compliance. A well maintained HR department is responsible to provide both employee satisfaction with company growth.