Managing Human Resource (HR) Laws Compliance using Technologies

Lexcomply.com enables HR departments to identify, allocate, manage and report statutory compliances. In HR function Statutory Compliances are of immense importance. In India it is not only the Central Government but also the state governments which have enacted various Acts/Laws for welfare of workmen and governing their terms of employment. Some of the labour laws are listed here-under :

1) The Employees Compensation Act, 1923 and The Workmen’s Compensation Rules 1924
2) The Child Labour (Prohibition and Regulation) Act, 1986 and the Child Labour (Prohibition and Regulation) Rules, 1988.
3) The Employees Provident Fund & Miscellaneous Provisions Act, 1952 and Employees’ Provident Funds Scheme, 1952
4) The Employee’s Provident Funds and Miscellaneous Provisions Act, 1952 and The Employee’s Deposit Linked Insurance Scheme, 1976
5) The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and the Employees’ Pension Scheme, 1995.
6) The Employees’ State Insurance Act, 1948 And The Employees’ State Insurance (Central) Rules, 1950 And The Employees’ State Insurance (General) Regulations, 1950
7) The Employer’s Liability Act, 1938
8) Equal Remuneration Act 1976 and Equal Remuneration Rules, 1976
9) The Payment of Bonus Act, 1965 and Payment of Bonus Rules, 1975
10) The Minimum Wages Act 1948 and The Minimum Wages Central Rules, 1950
11) The Apprentices Act, 1961 & Apprenticeship Rules, 1992
12) The Employment Exchanges (Compulsory Notification Of Vacancies) Act, 1959 and Employment Exchanges (Compulsory Notification Of Vacancies) Rules, 1960
13) The Punjab Labour Welfare Fund Act, 1965 and The Punjab Labour Welfare Fund Rules, 1966
14) Inter State Migrant Workmen (Regulation Of Employment & conditions Of service) Act, 1979 and Haryana Inter State Migrant Workmen (Regulation Of Employment & conditions Of service) Rules, 1981
15) The Punjab Shops and Commercial Establishments Act, 1958 and The Punjab Shops and Commercial Establishments Rules, 1958
16) Payment of Gratuity Act, 1972 and Haryana Payment of Gratuity Rules,1972
17) Payment of Wages Act, 1936, Payment of wages (Haryana Amendment) Act, 1985 and The Punjab Payment of Wages) Rules, 1937
18) The Minimum Wages Act 1948 and & The Punjab Minimum Wages Rules 1950
19) Contract Labour (Regulation And Abolition) Act, 1970 and Haryana Contract Labour (Regulation And Abolition) Rules, 1975
20) The Factories Act & Haryana Factory Rules

And these laws are dynamic and are changing on day to day basis. Non compliances may result in monetary penalty; closure of business operations or imprisonment. So e-HRM(Compliance) tools like LexComply.com generates due date, event based and ongoing compliances on its own hence chances of non-compliance go down.

Hence HR function can use e-HRM solutions to de-risk an organization from negative impact arising out of exit of key employees, high employee turnover and impact of regulatory non compliances.

For more details and demo please contact at info@lexcomply.com or visit at http://www.lexcomply.com

Provisions under Companies Act, 2013

Various Committees and provisions under Companies Act, 2013

 

  1. CSR Committee (Section 135 of Companies Act 2013)

Every company having the following criteria shall contribute in every financial year, at least two per cent. Of the average net profits of the company made during the three immediately preceding financial years

Net Worth: Rs. 500 Crores     Turnover: Rs. 1000 Crores          Profits: Rs. 5 Crores

  1. Audit Committee (Section 177 of Companies Act 2013)

Every public company having the following criteria shall constitute an audit committee .The paid up share capital or turnover or outstanding loans, or borrowings or debentures or deposits, as the case may be, as existing on the date of last audited Financial Statements shall be taken into account for the purpose

Paid up Capital: Rs. 10 Crores   Turnover: Rs. 100 Crores       O/s Loans: Rs. 50 Crores

  1. Nomination and Remuneration Committee (Section 177 of Companies Act 2013)

The Board of Directors of every listed company and the companies under following criteria shall constitute the Nomination and Remuneration Committee consisting of three or more non-executive directors out of which not less than one-half shall be independent directors

Paid up Capital: Rs. 100 Crores             O/s Loans: Rs.50 Crores

  1. Vigil Mechanism (Section 177 of Companies Act 2013) Every listed company or following class of companies, shall establish a vigil mechanism for directors and employees to report genuine concerns

 O/s Loans: Rs. 50 Crores

  1. CARO (Companies Auditor Report Order, 2016)

It shall apply to every company including a foreign company as defined in clause (42) of section 2 of the Companies Act, 2013 (18 of 2013 except– 1. Insurance Companies 2. Banking Companies 3. Section -8 Companies  4. One Person Company and a Small Company   5. Private Company not being a holding or a subsidiary company of a public company having the Following criteria during the Financial Year as per the Financial Statements:

Paid up Capital: Rs.1 Crore     Borrowings: Rs.1 crore           Profit: Rs. 10 Crores

  1. XBRL (Extensible Business Reporting language)

The companies following under following criteria are required to file their financial statements using XBRL Mode and the companies listed with any Stock Exchange(s) in India and their Indian subsidiaries; or (r (i)all companies who were required to file their financial statements for FY 2010-11. However, banking companies, insurance companies, power companies and Non-Banking Financial Companies (NBFCs) are exempted.

Paid up Capital: Rs.5 Crores           Turnover: Rs. 100 Crores                     

  1. MGT-8 (Section 92(2) of Companies Act 2013)

Applicable for Listed Companies and the Companies under the following criteria

Paid up Capital: Rs. 10 Crores        Turnover: Rs. 50 Crores                     

  1. Internal Audit (Section 138 of Companies Act 2013)

Every listed company:      Always applicable

In the case of Unlisted Public companies, the following criteria should be fulfilled

 Paid up Capital: Rs. 50 Crores    Turnover: Rs. 200 Crores    O/s Loans: Rs. 100 Crores 

 O/s Deposits: Rs. 25 Crores

In the case of Private companies, the following criteria should be fulfilled

 Turnover: Rs.200 Crore               O/s Loans: Rs. 100 Crore

  1. Women Director (Section 149 of Companies Act 2013)

Every listed Company:    Always applicable

Every other public Company, the following criteria should be fulfilled

Paid up Capital: Rs. 100 Crores         Turnover: Rs. 300 Crores                  

How to Deal With Sexual Harassment at Work Place?

7 things you can do to handle a case of sexual harassment at the workplace

harrassementHandling sexual harassment at the workplace can be tricky business. At stake is not just the morale and the productivity of employees, but also the very reputation and growth of the company. Here are some things you should consider as an employer.

1. Assess the Complaint: Insist on a written complaint. Where the aggrieved woman is unable to make a complaint on account of her physical or mental incapacity or death or otherwise, her legal heir or any person on her behalf may make the complaint.

2. Reconciliation: If there is a miscommunication or the matter is of trivial nature, the mater should first be tried to be resolved with reconciliation.

3. Form an Internal Committee as soon as you can: Assess the date of incident and in case of a series of incidents, within a period of three months from the date of last incident. During the pendency of an inquiry, on a written request made by the aggrieved woman, the Internal Committee may recommend to the employer to –

(a) transfer the aggrieved woman or the respondent to any other workplace; or
(b) grant leave to the aggrieved woman up to a period of three months: or
(c) grant such other relief to the aggrieved woman as may be prescribed.
(d) the leave granted to the aggrieved woman under this section shall be in addition to the leave she would be otherwise entitled.

These recommendations shall be implemented by you as an employer.

4. Assess the defense of the accused person, statement of witness, camera recordings, call records if relevant. It must be ascertained whether or not the allegations are made to settle personal grudges.

5. If Respondent is found Guilty: Take action in accordance with the provisions of the service rules applicable. Where no such rules have been made, salary shall be deducted as appropriate to be paid to aggrieved or her legal heirs within 60 days. Such misconduct can also be considered a violation of service norms of company/workplace.

6. Punishment for false or malicious complaint and false evidence

Where the Internal Committee arrives at a conclusion that the allegation against the respondent is malicious, the aggrieved woman or any other person making the complaint has made the complaint knowing it to be false or the aggrieved woman or any other person making the complaint has produced any forged or misleading document, it may recommend to the employer or the District Officer, as the case may be, to take action against the woman or the person who has made the complaint.

7. An additional complaint can also me made Under section 354/376 IPC and all above proceedings shall not made public.