It has to be structured, coordinated, and has to have proper laws and regulations in order for an organization to operate smoothly. These rules apply to all levels, including the way the company deals with its workers. That is called regulatory enforcement. In human resources, regulatory enforcement has to do with the legislative system under which businesses have to act with the care of their workers. Statutory compliance means the fulfillment of an individual, company, or firm’s obligations as prescribed by law (enactments, rules, regulations, notifications such as the Shops & Establishment Act, CST / GST, Contract Labor(A&R) Act, Employees Provident Fund, ESI, etc.).
Whether it is in the form of providing prescribed information in the form of periodic returns, obtaining registrations, following statutes in daily activities as a citizen, or as a corporate body.
Frequently Asked Questions
The intention behind the introduction of different rules and regulations is to ensure that the interests of employees are safeguarded and not exploited in any way. This in turn helps to build loyalty to the employees. Companies that fail to adhere to the specified rules and regulations run the risk of confronting legal issues, which can lead them to face heavy implications on the business's bottom line. Penal actions can be taken against organizations that willfully fail to comply with the rules and regulations set out in the framework. Thus it can be said that almost always companies undertaking a proactive approach to statutory compliance have an environment that is efficient, safer, and more trusted.
The Minimum Wages Act, 1948, is "a law providing for the setting of minimum wage rates in certain jobs," which sets out the minimum wages to be paid for skilled and unskilled laborers. This not only guarantees money for the bare livelihood of workers, but it also covers educational and medical needs. Both the Central and State Governments administer the Minimum Wages Act. The government of the state fixes minimum wage rates for different classes of employees, makes rules, and examines claims related to the non-payment of minimum wages. Payment below the minimum rate of pay is considered forced labor.
TERMS UNDER STATUTORY COMPLIANCE
Statutory Compliances for ESI Fund and PF Deduction
The ESI scheme applies to all factories and other establishments, as defined in the 1948 Employees ‘ State Insurance Act, with 10 or more persons employed in those establishments. Moreover, persons employed for wages up to Rs. 21,000 a month are covered only under the ESI scheme. The Employees Provident Fund ( EPF) is also a contributory fund, similar to ESI, in which both the employer and the employee contribute a certain sum. EPF is a mandatory and contributory fund for Indian organizations under “The Provident Fund for Employees and the 1952 Miscellaneous Provisions Act” The employer’s contribution represents 12 percent of basic salaries, plus dearness and allowances for retention. For establishments with fewer than 20 employees, the contribution rate for the employer is limited to 10 percent according to the EPFO rules.
Since the State government levies a professional tax, the amount varies in different states. Every state has its own professional tax laws. All states, however, follow the wage or wage-based slab system while levying a professional tax.
Penalties follow in the event of a violation of professional tax regulations. Although the actual penalty amount or penal interest is dependent on the laws of the respective state, the penalty is imposed by all states for failing to register once professional tax law comes into force. There are also penalties for on-time payments, as well as for failure to file the return by the specified due date.
Gratuity is a type of payment provided in the company by an employer to an individual for services rendered. However, gratuity is available only to workers who have spent five years or more with the company.
The employer shall plan for the gratuity payment to be charged to the employee within thirty days of the day it is payable. In the event that the employer fails to pay the balance within the stated duration, the employer may have to bear basic interest thereon from the date when the gratuity becomes payable at the rate not above that the government stipulates.
Any employer paying salaries to workers shall be allowed to subtract TDS under Section 192 of the Income Tax Act, 1961 if the wage reaches the permissible tax-exempt sum. Employers must ensure that they produce Form 24Q and Form 16 in a timely manner. The contractor is allowed to subtract TDS before issuing a salary to an employee. By the 7th of the next month, the balance withdrawn in the form of TDS must be deposited with the State. That refers to all months except March, for which the last date is April 30th. In the event that TDS has not been paid by the due date, the following provisions would apply-the late filing charge (if not filed by the due date), the interest (if not filed on time), and the penalty (if not filed within one year from the due date).
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Our foremost priority is to provide Instant Support and are always very particular on adherence of timely delivery so that you don’t miss out on deadline. We have worked with some most time strict clients and we have never missed our target. Our one thumb rule says that “If we miss a deadline we are out”. Accounts and Finance function need always alert eagle eye approach!
Our prices are most reasonable and under budget that you never realize any cost burden in your organization in comparison of value addition we bring in. We believe in adoption of your business first and fee shall take care of itself mantra. We never bill for disappointment and take ownership. It is how we like to be treated and that is how our customers are served.
We at AVS & Associates only recruit experienced, skilled professionals who have proven expertise in their field. With a diverse Team of Chartered Accountants, Company Secretaries, Lawyers, and various other consultants on board, we offer end to end financial and legal service under one roof saving time and energy and bring synergy effect between various functions.
Having over 20+ years experience in the leadership team ensure we maintain highest ethical standards and never go out of trust with you. We always believe in long term relationship with our clients hence integrity is something we value the most. We ensure transparency in communication, service and cost. Our specialized experts helps in maintaining high quality.