Labour Compliances in India: An Overview

Labour Laws are on the concurrent list of the Constitution. As a result, Central & State Governments legislate on all labour matters. Different states have implemented the rules in their own ways leading to differences in formats, forms, due dates, applicability, duty structures, payment methods, enforcement authorities among others. As a result, Labour Law Compliances in India are Complex. A multi-locational organisation deals with several hundred Labour Compliances in a month such as Licenses, Registrations, Consent Orders, Permissions, Renewals, Returns, Registers, Challans, Payments among others.

Managing Labour Compliances needs deep expertise of the law along with resources across your organisation for day to day management. Most organisations do not have in-house capabilities and resources to manage the complexity. As a result, they end up outsourcing services to third party vendors.

Four Types of Labour Compliances  

Payroll Compliances

Payroll Compliances
Includes Provident Fund (PF), Employee State Insurance (ESI), Professional Tax (PT) & Labour Welfare Fund (LWF). These compliances require a onetime Registration and Periodic Payments, Challan Preparations and Filings

Shops and Establishment Compliances

Shops & Establishment Compliances
Includes Compliances under Shops & Establishment Act, Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act & Equal Remuneration Act. Compliances include maintenance of muster rolls, wage registers, leave and attendance register, register of fines & deductions among others. This category also includes Registrations & Periodic Renewals

Factory Compliances

Factory Compliances
Includes compliances under Factories Act, 1948 such as one-time license, Consent to Operate, Designation of Occupier and Factory Manager, Periodic Returns, Accident Register among others

CLRA Compliances

CLRA Compliances
Includes Complaince under Contract Labour such as maintenance of registers by Contractor and periodic filings

Key Challenges in Current Service Model

Majority of Indian organisations do not have in-house expertise to manage all of their Labour Law Compliances. As a result, they seek the services of Third Party Vendors for managing all their Compliance requirements leading to the following Challenges:

Compliance Complexity Management


Too many forms, too many formats, too many dates and frequent changes

Compliance Specialist

Highly Manual

No technology based self service softwares available

Compliance Efficiency


Too many hours / days spent to prepare regulatory records

Compliance Requirement

Error Prone

Too many points of failure due to human errors and complex computation requirements

Compliance Outsourcing


Outsourced Managed Services are expensive. Only a handful of National vendors with expertise available.

Compliance Fluid

Highly Fluid

Forms, Formats, Dates & other requirements changes frequently. In 2019, 694 changes happened in Labour Laws

 Compliance Data

Data Privacy Issues

Outsourcing requires sharing of confidential data with third party who may not have the relevant privacy controls

HR Compliances supported by Avacom-Labour

Compliance Challan

Covering 3 acts (PF, PT and ESI)

Compliance Returns

276 Returns under 16 Acts
covering all states and UTs

Compliance Registers

608 Registers under 9 Acts
covering all states and UTs

Employees' Provident Funds and Miscellaneous Provisions Act
Employees' State Insurance Act
Tax on Professions, Trades, Callings and Employment's Act

Contract Labour (Regulation & Abolition) Act
Employee’s Compensation Act
Employees' Provident Funds and Miscellaneous Provisions Act
Employees' State Insurance Act
Employment Exchange (Compulsory Notification of Vacancies) Act
Industrial Establishment (National & Festival Holidays) Act
Labour Welfare Fund Act
Maternity Benefit Act
Minimum Wages Act
Payment of Bonus Act
Payment of Gratuity Act
Payment of wages Act
Shops & Commercial Establishment Act
Tax on Professions, Trades, Callings and Employment's Act
The Factories Act
The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act

Contract Labour (Regulation & Abolition) Act
Equal Remuneration Act
The Factories Act
Industrial Establishment (National & Festival Holidays) Act
Labour Welfare Fund Act
Maternity Benefit Act
Minimum Wages Act
Payment of Wages Act
Shops & Commercial Establishment Act

What our clients say about us

Avacom-Labour: TeamLease Regtech Solution

TeamLease Regtech Provides an end to end automated solution to prepare all the regulatory returns, registers and challanable files. Here are the key features

Labour Compliance Solution

Self Service Solution
Avacom-Labour is a self-service solution to all your Labour Compliance needs. Your internal HR team can now leverage the platform to generate all relevant regulatory records

Labour Compliance status

One time quick and easy on-boarding
Your organisation (entities, branches, factories, employees, states, applicable acts & compliances) are set up at the time of on-boarding

Timely Labour Compliance
Finance and Taxation

Periodic Data Upload Capability
There are predefined input file formats which can easily be created and uploaded on the required frequency (monthly, quarterly and annual).

Labour Compliance Forms and Formats

Templatized Forms and Formats
The System comes integrated with all the forms and formats across Central, 28 States & 9 Union Territories. These formats are updated as and when they undergo changes. The regulatory records are automatically generated in the applicable forms upon successful data upload .

Compliance Document Repositary

Centralised Document Repository
New and historical regulatory records available in an easy to search, sort, filter document repository with version control and tamper proofing. All the input files are also available for future reference .

Avacom smart dashboard
Industry Specific

Smart Dashboard
The System have colour coded, Graphical, Drill Down Dashboard Capability which is highly intuitive, real time updated and can be Personalised by the user. Dashboard can be Configured based on Financial Year, Entity/Location and different periods.

Avacom Compliance Calendar
Industry Specific

Auto Generated Compliance Calendar
Avacom- Labour has Auto generated Monthly compliance Calendar with Current and previous months details. It is Colour coded and shows status by days and it is integrated with the mail Clients (Outlook Client / Office 365, Google for Business Calendar).

Avantis Reporting and analytics
Industry Specific

Flexible Analytics & Reporting Capabilities
System have Comprehensive graphical standard reports and also have the capability to generate on demand reports with various parameters.

Compliance workflow
Industry Specific

Workflow Management
Capabilities to assign and manage work items to different users based on their roles

Compliance Access Management
Industry Specific

Role Based Access Management
Different users can be configured in the system based on their roles and accesses for different offices / factories.

Deployment of Labour Compliance
Industry Specific

Multiple Deployment Options
Avacom-Labour is available in a SAAS (Cloud Hosted) or On-Premises (Virtual Private Cloud / In-house Data Centre) hosting models based on your requirements

Complaince Management Budget
Industry Specific

Multiple Pricing Option
Pay as you go pricing model available which is easy on your budgets .

Avantis Complaince Security
Industry Specific

Avacom-Labour is secure with the best in class information security and data privacy practices including state of the art encryption standards for data at rest and data in motion

Avantis Legal Updates
Industry Specific

Integrated Legal Updates
Avacom – Labour has a feature of real time legal updates (within 24 hours of the notification), it covers all the States and territories. System can also be configured for personalised legal updates based on Industry, Regulator, State/UTs, ministry and key words.

Avantis Newsletter
Industry Specific

Weekly / Monthly Newsletter
Auto generated weekly / monthly legal updates newsletter based on applicable Acts / Compliances to your organisation.

Avacom-Labour - Key Benefits

Easy Data Access

Centralized Document repository enables quick and easy access to all historical regulatory records and raw data files.

Privacy Protection

No sharing of data with third party and high Encryption standards provides greater control and privacy.

Data Quality

Accurate outputs due to minimum manual intervention, system driven data computation and current forms and templates.

Avacom Labour Complaince Benifts


Enables capability for centralised data processing leading to greater control and efficiency over management of Registers and Returns.

Need based

Records can be generated based on the user requirement. Multiple documents can be regenerated.

Cost Effective

Significant automation leading to lower cost of Compliance Management.