In HR, statutory compliance refers to the legal framework that a company must follow when interacting with its personnel. Legal issues relating to statutory compliance are a common source of concern for businesses. Even if an organisation has no purpose of breaking the law, there may be loopholes inside the structure. With the rising risk of non-compliance, it is becoming increasingly important for Indian businesses to have statutory HR compliance.
Employees, employers, and organisations all benefit from statutory compliance.
For employees, it ensures that they are treated fairly and that their wages are paid on time. It also ensures that the employees' working conditions are satisfactory and well-managed.
The organisation and the employer, on the other hand, have a clear set of rules and regulations to fall back on. It also protects the company against fines and legal action. As a result, a trustworthy and secure environment is created.
As a result, Lewins Konsult establishes a pre-determined legal framework within which each particular organisation must operate, and the organisation must treat its employees in compliance with numerous federal and state labour laws.
ESI Fund and PF Deduction
Employees working in India have access to two social security schemes:
ESI is a contributory fund that allows Indian employees to contribute to a self-funded healthcare insurance fund, which is funded by both the employee and the company.
Employers with more than 10 employees who operate in a non-seasonal factory are required to provide ESI.The Employees Provident Fund (EPF), like the ESI system, is a Contributory fund in which both the employee and their employer contribute.While the ESI system focuses on healthcare, the Provident Fund is concerned with post-retirement income and benefits..EPF is a compulsory and contributory fund for Indian organizations under "The Employees' Provident Fund and Miscellaneous Provisions Act 1952"
TDS Deduction
If a payment exceeds specific threshold limits, the Income Tax Act mandates any enterprise or person making the payment to deduct tax at the source (collecting tax from income, dividends, or asset sales).