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  • Article

    Human Resource Laws

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    Human Resource Laws

    If the employees are happy it would increase the satisfaction level of the employees which would increase productivity, increase in retention rate, etc. The human resource manager is the first one to get to know about decline in the productivity, retention failure, unhealthy leadership, etc. so if the manager is aware of the laws, he can take corrective actions as and when necessary in order to save the resources of the organization. 

    Few Human Resource Laws are listed below:

    1. Factories Act 1948
    It ensures adequate safety measures and also promotes the health and welfare of the workers employed in factories as well as prevents haphazard growth of factories. Factories are divided into two types- With aid of power and without the aid of power. If the factory type is with aid of power employing 10 or more employees then it will be covered under factories act and if without the aid of power employing 20 or more employees will be covered under factories act. Factories Act provide various provisions related to labor welfare like:
    • First Aid facilities
    • Drinking water
    • Canteens
    • Shelters, restrooms, and lunchrooms
    • Creches
    • Facilities for sitting
    • Welfare and Grievance
    • Leaves
    • Working Hours
    • Provisions relating to Hazardous processes
    • Provisions relating to Health
    • Employment of young adults

    There are contraventions for the prevention of this act that is imprisonment which may extend up to two years or a fine which may extend to one lakh rupees. If the act is still not followed by the employer the fine may extend up to one thousand rupees per day. 

    2. Maternity Benefit Act 1961
    It protects the employment of women during the time of their maternity and entitles them to a 'maternity benefit' i.e., paid absence from work. The maximum period of maternity benefit shall be 26 weeks i.e., 8 weeks before the expected delivery and 18 weeks after the childbirth.
    The maternity bonus is provided - 3500 per maternity. Additional maternity leaves are also provided like post-maternity in case of prematurity or illness of the child or the mother. Leaves in case of miscarriage or medical termination should also be provided for 4 weeks.
    In the case of the Commissioning mother, the leaves provided are 12 weeks from the date the child is handed over to her. In the case of Adopting mother, leaves are provided for 12 weeks if the child is below the age of 3 months. Work from the home facility can be provided if mutually agreed between the employer and the employee. There are Penalties for contravention of the act by the employer like Imprisonment for not less than 3 months which could be extended to 1 year or Fine not less than 2000 which may extend to 5000.

    3. Sexual Harassment (Prevention Prohibition and Redressal) Act 2013
    This act protects women from sexual harassment at the workplace. This will contribute to the realization of their right to gender equality, life and liberty, and equality in working conditions everywhere. The sense of security at the workplace will improve the participation of women in work, resulting in the empowerment of economic and inclusive growth. This act also provides a safeguard against malicious or false charges. HR managers are the first recipient of a sexual harassment complaint. They are also actively involved in the formation of the Internal Complaints Committee and drafting of Sexual Harassment Policies. Penalties for contravention of the act include imprisonment range from one to three years and/or a fine.


    4. Employee Provident Fund Act:
    Provident fund is a welfare scheme for the benefits of the employees and it also acts as security to the employees after their retirement or old age. Under the Employee Provident Fund Act both the employee & employer contribute a certain amount but the whole of the amount is deposited by the employer to the employee. Employers deduct the employee's contribution from his/her salary. The interest earned on this investment is credited to the provident fund account of the employees. At the time of retirement, the total amount is given to the employees. The act is applicable if the employees are 20 or more engaged in a factory in any industry or any other establishment so notified by the Central Government even if employing less than 20 persons. There are types of the provident fund like:
    • Statutory Provident Fund (SPF)
    • Public Provident Fund (PPF)
    • Recognized Provident Fund (RPF)
    • Unrecognized Provident Fund (URPF)

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