What Are Labour Laws?
Labour laws are regulations that govern the relationship between employers and employees, covering wages, working hours, benefits, health, and safety. These laws ensure a balanced and fair work environment and are essential for every business.
Labour laws in India fall under both Central and State Governments. While central laws apply nationwide, each state (like Karnataka) may have specific rules, notifications, and procedures for implementation.
Key Central Labour Laws Applicable in Karnataka:
⇒ The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952
⇒ The Employees’ State Insurance Act, 1948
⇒ The Payment of Wages Act, 1936
⇒ The Minimum Wages Act, 1948
⇒ The Payment of Bonus Act, 1965
⇒ The Maternity Benefit Act, 1961
⇒ The Payment of Gratuity Act, 1972
⇒ The Contract Labour (Regulation and Abolition) Act, 1970
⇒ The Equal Remuneration Act, 1976
⇒ The Industrial Disputes Act, 1947
⇒ The Factories Act, 1948
⇒ Many of these are now being grouped under the new Labour Codes (yet to be fully enforced as of now):
⇒ Code on Wages
⇒ Code on Social Security
⇒ Industrial Relations Code
⇒ Occupational Safety Code
Important Karnataka-Specific Labour Laws
These are rules or modifications issued by the Labour Department of Karnataka, often supplementing central laws:
1. Karnataka Shops and Establishments Act, 1961
Regulates working hours, overtime, holidays, and leave for employees in shops and commercial establishments.
⇒ Employers must register under this Act and renew as required.
⇒ Applicable to IT companies, retail stores, hospitals, and more.
2. The Karnataka Factories Rules, 1969 (under Factories Act, 1948)
Specific rules for factories operating in Karnataka regarding safety, welfare, working hours, and record maintenance.
3. The Karnataka Labour Welfare Fund Act, 1965
Requires employers to make contributions to the Labour Welfare Fund for employee welfare.
⇒ Contribution is usually made in December each year (Employer + Employee share).
4. The Karnataka Industrial Establishments (National & Festival Holidays) Act, 1963
Mandates a list of paid holidays, including Republic Day, Independence Day, and Gandhi Jayanti, plus additional local/festival holidays.
5. Trade License & Labour License in Karnataka
Required for businesses engaging contract workers or employing more than a specified number of workers.
Issued under the Karnataka Contract Labour (Regulation & Abolition) Rules, 1974
Why Labour Law Compliance is Crucial in Karnataka
⇒ Legal Obligation: Avoid penalties, closure, or prosecution
⇒ Audit Ready: Stay prepared for inspections from Labour Departments
⇒ Employee Trust: Build a compliant and ethical work culture
⇒ Business Continuity: Ensure smooth and risk-free operations
Labour Law Compliance Services in Karnataka Include:
- Registration under Shops & Establishments Act
- PF, ESI, Professional Tax registrations & monthly filings
- Maintenance of attendance, salary, leave, and wage records
- Handling inspections and audits
- Assistance in labour license applications and renewals
- Ensuring timely welfare fund contributions
- Drafting HR policies in compliance with Karnataka laws