Various Labour Acts & Compliances in India

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2. The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952

Applicability

• Establishments with 20 or more employees
• Employees earning up to ₹15,000/month mandatorily covered

Mandatory Returns

• Monthly ECR (Electronic Challan-cum-Return)
• Form 5, 10, 12A
• Annual returns: Form 3A, Form 6A

Non-Compliance Consequences

• Interest @ 12% p.a. for delays
• Damages up to 25% of dues
• Imprisonment up to 3 years and fines.

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3. The Employees’ State Insurance Act, 1948

Applicability

•   Establishments with 10 or more employees
•   Wages up to ₹21,000/month (₹25,000 for persons with disabilities)

Mandatory Returns

•   Form 1: Declaration form
•   Form 5: Half-yearly return
•   Maintenance of wage register, accident register

Non-Compliance Consequences

•   Interest @ 12% p.a.
•   Penalty up to 25% of unpaid contributions
•   Imprisonment and fines

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4. The Payment of Wages Act, 1936

Applicability

•   Employees earning less than ₹24,000/month
•   Applies to factories, railways, industrial and commercial establishments

Mandatory Returns

•   Form III: Annual Return on wages
•   Maintenance of muster rolls, wage registers

Non-Compliance Consequences

•   Fine up to ₹7,500 for first offence
•   Higher fines or imprisonment for repeated offences

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5. The Minimum Wages Act, 1948

Applicability

• Applies to all scheduled employment sectors listed by the government
• No minimum employee count for applicability

Mandatory Returns

• Form III: Register of wages
• Annual return under state-specific rules

Non-Compliance Consequences

• Fine up to ₹500 for first offence
• Imprisonment up to 6 months and/or fine for subsequent offences

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6. The Payment of Bonus Act, 1965

Applicability

• Establishments with 20 or more employees
• Employees earning up to ₹21,000/month and having worked at least 30 days

Mandatory Returns

• Form C: Annual return
• Register showing calculations of allocable surplus, set on/set off

Non-Compliance Consequences

• Fine up to ₹1,000 or imprisonment up to 6 months

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7. The Payment of Gratuity Act, 1972

Applicability

• Establishments with 10 or more employees
• Applicable once threshold is met even if employee count falls below 10 later

Mandatory Returns

• Form L: Notice of opening
• Form M: Monthly return
• Form N: Notice of change

Non-Compliance Consequences

• Imprisonment up to 1 year and/or fine up to ₹10,000
• Delays in payment attract simple interest

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8. The Contract Labour (Regulation & Abolition) Act, 1970

Applicability

• Establishments and contractors with 20 or more contract workers

Mandatory Returns

• Form XII: Register of contractors
• Form XXV: Annual return
• Contractor records: Form XIII, XIV, XIX

Non-Compliance Consequences

• Fine up to ₹1,000 and/or imprisonment up to 3 months
• Cancellation of registration/license

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9.  The Shops and Establishments Acts (State Specific)

Applicability

• Applicable to all commercial establishments, including offices, shops, hotels, etc.
• Varies by state in terms of number of employees and provisions

Mandatory Returns

• Registration certificate
• Monthly/Annual returns on employee details, wages, working hours (state-specific)

Non-Compliance Consequences

• Penalty and fine as per state rules (e.g., ₹1,000–₹5,000 for first offence)

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10.  The Industrial Disputes Act, 1947

Applicability

• All industrial establishments
• Special provisions apply for establishments with 100 or more workers

Mandatory Returns

• Form M: Annual return
• Notice of Change, Retrenchment, Layoff: Form O, P

Non-Compliance Consequences

• Penalties for illegal strikes/lockouts
• Imprisonment up to 6 months and/or fines

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