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Human Resource Management · Module 7 of 10

Labour laws and compliance in India

The legal basics HR must follow.

📖 Key ideas

  1. India consolidated many labour laws into four Labour Codes: wages, industrial relations, social security, and occupational safety, health and working conditions.
  2. Social security schemes include EPF (provident fund) and ESI (health insurance for eligible employees).
  3. The Payment of Gratuity rules give a lump sum to eligible employees after long service, usually five years.
  4. The POSH Act, 2013 requires employers to prevent sexual harassment and set up an Internal Committee.
  5. Rules apply based on company size, location and employee type, so HR must check current notifications.
💡 Real-life example: Like traffic rules: you may drive well, but you still need a licence, insurance and to follow the signals, or you face penalties.
Labour CodesFour codes consolidating Indian labour laws
EPFEmployees' Provident Fund
ESIEmployees' State Insurance
POSH ActLaw on prevention of sexual harassment at the workplace