LABOUR LAW BUSINESS COURSE – EMPLOYEE RULES, REGISTRATIONS, SALARY, COMPLIANCE, ADVANTAGES & PENALTIES

LOGESHRAGUL

 


INTRODUCTION

If you are running a business, you must follow labour laws when hiring employees.

This course explains:

  • Employee rules
  • Labour registrations
  • Salary laws
  • Government benefits
  • Compliance, penalties
  • Step-by-step business setup

👉 Key Labour Framework: Code on Wages, 2019, Industrial Relations Code, 2020, Social Security Code, 2020, Occupational Safety, Health and Working Conditions Code, 2020

A. WHAT IS LABOUR LAW?

Labour law is a set of rules that protect employees and regulate employers.

MAIN PURPOSE

  1. Fair wages
  2. Safe workplace
  3. Employee benefits
  4. Legal hiring

B. TYPES OF EMPLOYEES

  1. Full-time employee
  2. Part-time worker
  3. Contract labour
  4. Daily wage worker

C. KEY LABOUR REGISTRATIONS (MANDATORY)

1. EPF REGISTRATION (Provident Fund)

👉 Law: Employees' Provident Funds and Miscellaneous Provisions Act, 1952

WHEN REQUIRED

  • 20+ employees

BENEFITS

  1. Retirement savings
  2. Employer contribution

2. ESI REGISTRATION (Health Insurance)

👉 Law: Employees' State Insurance Act, 1948

WHEN REQUIRED

  • 10+ employees

BENEFITS

  1. Medical care
  2. Insurance

3. PROFESSIONAL TAX

  • State-level tax on employees

4. LABOUR WELFARE FUND (LWF)

  • Employee welfare contribution

D. MINIMUM WAGES & SALARY RULES

1. MINIMUM WAGE LAW

👉 Under Code on Wages, 2019

RULES

  1. Pay minimum wage (state-based)
  2. No delayed salary
  3. Equal pay for equal work

2. SALARY COMPONENTS

  1. Basic salary
  2. HRA
  3. Allowances
  4. Bonus

E. WORKING HOURS & CONDITIONS

👉 Law: Occupational Safety, Health and Working Conditions Code, 2020

RULES

  1. 8–9 hours per day
  2. Weekly holiday
  3. Safe working conditions

F. EMPLOYEE BENEFITS

1. PROVIDENT FUND (PF)

  • 12% employer + 12% employee

2. ESI BENEFITS

  • Medical + maternity

3. BONUS

👉 Law: Payment of Bonus Act, 1965

  • Minimum 8.33%

4. GRATUITY

👉 Law: Payment of Gratuity Act, 1972

  • After 5 years service

G. HIRING PROCESS 

1. RECRUITMENT

  • Select employee

2. OFFER LETTER

  • Salary + role

3. DOCUMENT COLLECTION

  • Aadhaar, PAN

4. REGISTER IN PF/ESI

  • If applicable

5. MAINTAIN RECORDS

  • Attendance, salary

H. TERMINATION RULES

👉 Law: Industrial Relations Code, 2020

RULES

  1. Notice period required
  2. Valid reason needed
  3. Final settlement

I. GOVERNMENT SUPPORT FOR EMPLOYERS

  1. MSME benefits
  2. Subsidy schemes
  3. Skill development programs
  4. Startup India support

J. ADVANTAGES OF LABOUR COMPLIANCE

  1. Legal safety
  2. Employee trust
  3. Business growth
  4. Avoid penalties

K. DISADVANTAGES / CHALLENGES

  1. Compliance cost
  2. Documentation work
  3. Complex rules

L. PENALTIES FOR NON-COMPLIANCE

  1. Fine ₹10,000 – ₹1 lakh
  2. Business shutdown
  3. Legal case
  4. Imprisonment (in serious cases)

M. COMMON MISTAKES TO AVOID

  1. ❌ Not registering PF/ESI
  2. ❌ Paying below minimum wage
  3. ❌ No employee records
  4. ❌ Ignoring safety rules

N. COMPLETE LABOUR SETUP FLOW

STEP-BY-STEP

  1. Start business
  2. Hire employees
  3. Apply PF (if 20+)
  4. Apply ESI (if 10+)
  5. Register professional tax
  6. Follow wage laws
  7. Maintain records
  8. Provide benefits

O. PRACTICAL EXAMPLE (YOUR BUSINESS)

For your Burfi Ball business:

IF YOU HAVE:

  • 1–9 employees → Basic compliance
  • 10+ → ESI required
  • 20+ → PF required

FINAL CONCLUSION

Labour laws are not optional. They help:

  • Protect employees
  • Build trust
  • Grow your business safely

👉 Following labour compliance makes your business professional, scalable, and legally secure.

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