HR managers play a vital role in shaping the growth of a company\/organization. Roles such as- inducting, recruiting, performance assessment, training and Development, and grievance resolution, they are hold responsible for retention, performance and satisfaction of the employees.<\/p>\n\n\n\n
The \u201cLaw\u201d has an important role in the performance of any HR manager. Although not always its apparent. For instance- hiring is accompanied by contracts and also possible negotiation. While firing may require them to follow the provisions of different contracts. Also, ensure that any intellectual property created by an employee or a consultant is protected and secured in favour of the company. And that proper disciplinary proceedings take place if someone is being fired for a breach in the code of conduct, sexual harassment, etc.<\/p>\n\n\n\n
Thus, this is one of the primary reasons why every HR course\nneeds to have a legal module. However, this is usually covered in the way that\nvery scared patients go through a root canal. You close your eyes through the\nordeal and try to forget the experience as soon as it is over. With exceptions,\nof course, most fresh candidates who have specialized in HR have precisely\nlittle practical knowledge about labour and employment laws, or any other law\nthat may be relevant to their work.<\/p>\n\n\n\n
However, as you move up the chain, your legal knowledge becomes indispensable. For Instance: \u201cif you are drafting a leave policy for a company, and fail to check the relevant Shops and Establishments Act of the state, you will almost certainly get it wrong\u201d. The consequence can involve heavy fine by the company if an inspector comes visiting.<\/p>\n\n\n\n
Let\u2019s take another example. If an organization has more than\n25 or more employees. Then employment Exchange i.e. Compulsory notification of\nvacancy Act, 1959 mandates a private establishment to give a public\nnotification to certain employment exchanges. While, most HR managers have no\nclue about this law and resultant their employers may have to end up paying big\nfines and dealing with legal hassles because of non-compliance.<\/p>\n\n\n\n
Internal turmoil, decline in productivity of individuals, unhealthy leadership, retention failures, even corruption and nepotism, are mostly first registered to the Human Resources Personnel. Since most of such issues have various legal implications and angles. Thus, needs the consideration at a senior level to be addressed. However, when disastrous and expensive legal proceedings are assessed retrospectively. It is often found that the root was in unaddressed concerns. Hence a good HR can see these concerns ahead of time and address them. Therefore, saving the resources of the company in a big way.<\/p>\n\n\n\n
While all these could be avoided by a smart and legally\naware HR manager who fixes that clause. Resultant ensuring that there is a\nbankable arbitration procedure to enforce the clause. And create awareness\namongst employees about how serious the company is about enforcing the\nnon-compete obligation.<\/p>\n\n\n\n
So, if you are an HR manager, here we have enlisted statutes\nand regulations you could learn about and help your organization succeed:<\/p>\n\n\n\n
This act is just 5 years in age and has already taken the private\nbusiness sector by the storm over the last few years. As, in most of the cases,\nHR managers are the first recipient of a sexual harassment complaint. Also,\nthey are actively involved in drafting of Sexual Harassment Policies and\nformation of Internal Complaints Committee. What if the committee completely mishandle\na hearing? Would that reflect well on the company or the HR manager? Hence,\neven if the HR manager is not part of sexual harassment committee, s\/he should\nhave a good understanding of the law, compliances and procedures involved.<\/p>\n\n\n\n
Factories are often identified with labour issues and\ninspector raj. So, whether it\u2019s for numerous compliances or for or any\nregulations related to working conditions, the knowledge of this act is\nnecessary for HR managers. More and more large companies, especially MNCs are\nnow approaching consultants and training institutes to get trained their HR\nmanagers about Factories Act compliances. So, if you work in an organization that deals\nwith manufacturing or has factories, then it is important for you to know about\nthis act whether your organization takes the initiative or not. Individual HR\nmanagers who want to learn about Factories Act will be better off taking up a Certified\nLabour Law Certification course. <\/p>\n\n\n\n
This act prescribes the basic rights and interests of the\nworkers, and the guarantee to provide them with basic amenities like proper\nsanitation, ventilated work space, safety for using machinery etc. The maximum\nworking hours are prescribed are not more than 48 hours in a week. Therefore, compliance\nwith this act can act as a boon for this company as it can effectively avoid\nlabour conflicts in the future.<\/p>\n\n\n\n
This act is sighted to provide a kind of social security to\nthe industry employees. So, if you have an employee which is working in your\nfactory or in association with the work of your factory, s\/he is entitled to\nbecome a member of this fund. The benefits like retirement pension, medical\ncare, housing, family obligations, education and benefits arising out of\ninsurance, rights of older employees post retirement, are few aspects which are\ncovered under this act. <\/p>\n\n\n\n
An apprentice is a person who is learning from a skilled\nemployer, who has agreed to work for a fixed period of time. So, if your\norganization offers apprenticeship then you need to make the policies for them\nas per this act. The act allows you for: casual leave for 12 days, medical\nleave of 15 days and extraordinary leave of 10 days in a year. <\/p>\n\n\n\n
It is perhaps the most known act in this list. This act is\naimed at providing full benefits and protection to the to be mother and her child\nduring the time of maternity in the form of paid maternity leaves. However,\nlet\u2019s try to understand the provisions.<\/p>\n\n\n\n
For an instance: If a pregnant woman has worked in your\norganization for a period of 80 days. Then she is entitled to maternity\nbenefits under the act. The act also provides for provision of light work, up to\na period of 10 weeks, after she resumes work. <\/p>\n\n\n\n
If you are an HR then you need to know the sort of\nliabilities your organization might have in case of any labour accident.\nAlthough, there are security departments in the factories ensuring every\nindividual is following the safety guidelines. However, as an HR it is your\nresponsibility to ensure that the necessary tools and equipment are provided\nand complied with. You need to know that all of the regulations and guidelines\nare created in cohesion to this act so that unnecessary future liabilities can\nbe avoided.<\/p>\n\n\n\n
So, what is this act?<\/strong><\/p>\n\n\n\n It is an act which in case of an injury or accident at the\ntime of work, provides financial protection to the workers or their dependants.\nIt actually provides for financial compensation in the case of any such\naccident. So, in case of non-compliance, the employer is liable for a criminal\noffence.<\/p>\n\n\n\n Gratuity is actually a part of the salary, that employees receive\nfrom their employers. As a token of gratitude for the services they have\nperformed during their employment tenure. It is one of the many retirement\nbenefits that they are entitled to.<\/p>\n\n\n\n If an employee has completed one year of service in an\norganization, then s\/he is entitled to gratuity. Therefore, the HR manager is\nrequired to know about this act. So that in case of an mishappening with an employee\nwho has completed one year of continuous service in a company, or in case of\nretiring individuals, must be awarded with basic gratuity. <\/p>\n\n\n\n As an HR it is your responsibility to see and check that the\ndue wages are credited to the workers on a monthly basis and without any hassle\nand unnecessary deductions. This act is a guide to ensure that any such\ndiscrepancies can be avoided. This act provides standards for assessing the\nremuneration of the employees. A nd ensures that the salaries are governed as\nper the industry standard. This is an act meant to give you and your employee\nan equal bargaining power. It is a must know to avoid any future conflicts. <\/p>\n\n\n\n This act covers- right from the cap on working hours to provision\nof conciliation between the company and its employees.<\/p>\n\n\n\n With a focus to settle the employer-employee disputes amicably.\nAs it is a tool for peaceful resolution. It is utmost important for you to\nensure that the employee is given at least a minimum of six weeks\u2019 notice\nbefore getting fired. Mostly the issues such as: wages, holidays, working hours\netc, or anything that can cause a dispute, which must be cohered to form a part\nof the act. <\/p>\n\n\n\n So, if you\u2019re an HR then you are required to consciously\ncomply to these rules, while deciding the leave policy. Based upon the\nreligious and cultural beliefs of a particular state these rules decide the\nnational and state leaves which are. Thus, as an HR it is your responsibility\nto ensure that cultural sentiments of any employee is not hurt. And their\nhappiness quotient in your organization remains on a constant high. <\/p>\n\n\n\n This act is focused to provide bonus to the employees of\ncertain industries and establishments. If his salary is above 15,000 and he has\nworked for a minimum of 30 working days in a year. Irrespective of skilled or\nunskilled work every employee\/worker is entitled to a bonus every accounting\nyear. <\/p>\n\n\n\n This statute acts as a self-financing security for every\nemployee in India. As, the employer is entitled to contribute a 4.75% of the\n6.5% of insurance to all the employees. Those who are earning 15,000 or less\nper month. This act provides health and medical benefits to all the employees\nand up to 6 dependents of the employees. In case of a tragedy, funeral,\naccident, medical contingency, injury, maternity and sickness, an employer is\nrequired to cover the expenses through an insurance as per this act. <\/p>\n\n\n\n This is one of the most important regulation. The government is more proactive than ever to ensure that child labour is completely banned in the country. However, the latest amendment in 2016 has relaxed the guidelines a little. The employment of children who are below the age of 14 in all occupations and professions is prohibited.<\/p>\n\n\n\n Although, there are now certain exceptions to the law. So, if you are working in the entertainment industry or a non-hazardous industry, then children above the age of 14 years can work after the school hours. And if all the amenities under the law are provided to them. <\/p>\n\n\n\n Although there is a list of laws, apart from the above\nlisted that a company needs to comply with. Which is the sole responsibility of\nthe HR managers. So, it becomes important that an HR manager is well aware and\nmaking significant contributions through various policies. This is because Legal\nawareness and human resources if combined can produce a very inclusive\nworkspace. Resultant which could significantly enhance a company\u2019s\nproductivity. You can learn more about such laws to ensure your company is free\nfrom all kind of future troubles.<\/p>\n\n\n\n Towards, making our country a better workspace.<\/p>\n\n\n\n7. The Payment of Gratuity Act, 1972<\/strong><\/h4>\n\n\n\n
8. The Payment of Wages Act, 1936<\/strong><\/h4>\n\n\n\n
9. The Industrial Disputes Act, 1947<\/strong><\/h4>\n\n\n\n
10. State Wise Factories and Establishments<\/strong>\n(National, Festival and other Holidays) ACT.<\/strong><\/h4>\n\n\n\n
11. The Payment of Bonus Act, 1965<\/strong><\/h4>\n\n\n\n
12. The Employees State Insurance Act, 1948<\/strong><\/h4>\n\n\n\n
13. Child Labour Regulations (CLR)<\/strong><\/h4>\n\n\n\n
To wind up<\/strong><\/h3>\n\n\n\n