Insurance Contract Clauses

LABOUR LAW COMPLIANCES:
The relationship between employers and employees is governed by a complicated system of labour
laws and regulations in India. These laws are intended to safeguard employees' rights and guarantee
just and secure working conditions. Employers must thus abide by these regulations to stay out of
trouble with the law and maintain their good name.
The Industrial Disputes Act of 1947, the Factories Act of 1948, the Minimum Wages Act of 1948, the
Payment of Wages Act of 1936, the Employees' State Insurance Act of 1948, the Employees
Provident Fund and Miscellaneous Provisions Act of 1952, and the Contract Labour (Regulation and
Abolition) Act of 1970 are the main regulations governing labour in India. These laws address a
variety of topics, including pay, working conditions, health and safety, social security, and
employment agreements.
Maintaining accurate and current records of employees is one of the most crucial components of
complying with labour laws in India. This contains records of the employees' attendance, pay, and
other perks. Also, employers must make sure that they offer all required benefits, including gratuity,
PF (Provident Fund), and ESI (Employee State Insurance).
Moreover, businesses are required to follow a variety of labour law requirements, including:
1. Licensing and Registration: Employers must register their business with the local
government and get the required licences.
2. Posting Notifications: Businesses must post notices relating to labour regulations,
such as those pertaining to minimum salaries, working hours, and other needed
benefits.
3. Statutory Filings: Businesses are required to submit a number of statutory filings,
including yearly reports, as well as returns for PF, ESI, and other applicable
legislation.
4. Compliance Audits: To make sure they are abiding by all relevant labour rules,
employers must regularly perform compliance audits.
IMPORTANT LABOUR LAWS THAT STARTUP ENTREPRENEURS IN INDIA MUST FOLLOW
Based on the areas they cover; Indian labour laws may be roughly divided into the following
categories:
1. Hours Of Operation & Terms of Service.
The Factories Act and S&E Acts control employee work schedules, vacation time, and weekly
vacations. According to the Industrial Disputes Act of 1947, worker category employees are not
allowed to unilaterally modify some terms of employment. For instance, no manufacturing worker
should be permitted to work more than 48 hours each week under the legislation.
2. Social Security Benefits & Minimum Wages
The Equal Remuneration Act of 1976 forbids gender discrimination in the workplace and guarantees
that men and women be paid equally for performing the same task.
Employers must provide qualified employees with profit- or productivity-based incentives under the
Payment of Bonus Act of 1965. The Act is applicable to companies with 20 or more employees and
offers several exemptions to newly established organisations. For instance, the statute mandates
that bonuses be paid exclusively in cash and that they must be paid by employers within the month
that the award becomes enforceable.
For a certain group of employees, the Payment of Wages Act, 1936 governs the deductions that may
be made from wages and the timeframe for payment of wages. For instance, if an employee misses
work or loses or damages any of the things that were entrusted to them while they were at work,
their earnings may be deducted.
Businesses with 20 or more employees are required to register their company and make
contributions to social security benefit programmes like provident funds, pensions, and deposit-
linked insurance in respect of the qualified employees under the Employees Provident Funds and
Miscellaneous Provisions Act of 1952.
Benefits are available to qualified employees under the 1948 Employees' State Insurance Act in the
event of illness, maternity, and workplace accidents. Businesses having 10 or more workers (or 20 or
more in some States) are required by the Act to register and pay into the funds that the government
maintains for the benefit of its eligible employees.
According to the Payment of Gratuity Act of 1972, businesses with 10 or more employees are
required to give gratuities to workers who have completed five years of continuous service at the
time of termination. For instance, the service would not be considered continuous if an individual
were fired and then hired again.
The Maternity Benefit Act of 1961 governs a woman's work before, during, and after childbirth. For
instance, it mandates that some businesses extend paid maternity leave for a total of 26 weeks.
Some employers are required under the Workers' Compensation Act of 1923 to provide
compensation to their employees in the event of an accident-related injury sustained while on the
job.
3. Retrenchment & Termination
The Industrial Disputes Act of 1947 regulates the firing or layoff of employees. For every completed
year of employment, including partial years, the employer must provide at least one month's written
notice, notice pay, and severance pay at the rate of 15 days' earnings.
According to the S&E Acts, employers are normally required to offer one month's notice or money in
place of notice when terminating an employee's employment for a legitimate reason.
However before terminating employment if an employee engages in any misbehaviour, the

employer must undertake disciplinary procedures in accordance with the Principles of Natural
Justice.
4. “Prevention of sexual harassment of women in the workplace”
In addition to outlawing sexual harassment of women at work, the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013, establishes a grievance redressal
process for sexual harassment claims.
According to this Act, businesses and organisations with ten or more employees must form an
internal committee to look into allegations of sexual harassment.
LABOR LAW COMPLIANCE CHECKLIST FOR PREGPACK

PREGPACK is a startup limited by shares, with the registered office in India located at Delhi. This
entity has a total number of 25 employees which makes it subject to the provisions of several labour
laws in India. The labour law compliance checklist hereunder mentioned enlist all the required laws
which pregpack be made subject to.
A compliance checklist is exactly what it sounds like: a thorough, in-depth list that is used to help
someone complete a process or assignment. It basically serves as a manual to make sure everything
is going according to plan. Establishments are required to guarantee statutory conformity with
certain labour regulations. The following is a complete check list to ensure that labour rules are
being followed:
CONFORMITY REQUIREMENTS
1. “THE FACTORIES ACT OF 1948”.

- To draft provisions for proper safety precautions on the Industrial Grounds.
- To draft provision for the suitable welfare amenities for the workers, such as a creche, a
canteen, a bathroom, etc.
- Payment of salaries in accordance with the Act's regulations.
- Payment overtime compensation.
- Keeping up with registrations.
- Filing of returns
2. “WORKMEN’S COMPENSATION ACT, 1923”
- To draft provisions for compensating employees/workers in case of accidents.
- Filing of returns
3. “APPRENTICES ACT, 1961”
- If the business is a member of the specified industry, the appointment of apprentices.
- Filing of returns
4. “EMPLOYEE STATE INSURANCE ACT, 1948”
- Pay Monthly contribution remittance.
- Filing of returns
5. “CONTRACT LABOUR (Regulation & Abolition) Act, 1970 AND RULES”
- Keeping up with registrations in accordance with the act.
- Filing of returns as per the laws of the act.
- Maintaining the workable conditions of the employees.
- Maintaining adequate workplace amenities for workers, such as a canteen and drinking
water.
- Maintaining adequate amenities for female employees as well.
6. “EMPLOYEE’S PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT, 1952”
- Pay Monthly contribution remittance.
7. “EQUAL REMUNERATION ACT, 1976”
- To ensure that there is no difference in salary between male and female employees
performing the same task.
8. “EMPLOYMENT EXCHANGES (Compulsory Notification of Vacancies) Act, 1959”
- Once a vacancy occurs, notice of the position has to be submitted before the local job
exchange.
9. “MINIMUM WAGES ACT, 1948”
- To draft provision of the government's mandated minimum pay rate.
10. “PAYMENT OF WAGES ACT, 1936”
- To comply with the Payment of wages act without any unauthorised deductions.
- Keeping up with registrations of deductions, wages, fines and etc, in accordance with the
act.
- Filing of annual returns as per the laws of the act.
11. “Trade Unions Act, 1926”
- Unions must be registered in compliance with the act's regulations.
12. “THE INDIAN BOILERS ACT, 1923”
- Get the required certification of boilers
- Ensure adequate safety measures
- Hire qualified individuals to manage the boilers
- upkeep of registries in accordance with law's provisions.
13. “PAYMENT OF BONUS ACT, 1965”
- Payment of bonus under the provisions of the Act.
14. “PAYMENT OF GRATUITY ACT, 1972”
- Gratuities are given to workers who leave a business after five years have passed.
- Giving concerned labour authorities notice of the opening.
- Displays that are mandated under the Act.
- Keeping up with registrations of bonus, allocable surplus and etc.
- Filing of annual returns as per the laws of the act.
15. “MATERNITY BENEFIT ACT, 1961”
- Following childbirth or any other maternity-related issues, such as abortion, etc., leave
must be granted and paid for.

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LABOUR LAW COMPLIANCES:

1. Hours Of Operation & Terms of Service.

2. Social Security Benefits & Minimum Wages

3. Retrenchment & Termination

However before terminating employment if an employee engages in any misbehaviour, the

4. “Prevention of sexual harassment of women in the workplace”

LABOR LAW COMPLIANCE CHECKLIST FOR PREGPACK

1. “THE FACTORIES ACT OF 1948”.

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