I remember the opening statement made by a distinguished leader and Chairman of the Company during the induction session of my first job. He said, as a Company we take care of the following four needs which always worry an employee and if this is taken care of we believe, the Employee will deliver to the fullest potential. The four needs are – Roti, Kapda, Makaan aur Sehat. For Roti & Kapda, the Company provides salary that is equivalent to or better than most of its competitors, for Makaan they provide housing loans at reduced interest rates and for Sehat, they cover under insurance the Employee and all family members. This is a powerful statement since it’s true then and now. This is what every individual wants their organization to take care of as a primary need, rest of everything is aspirational. It is also the most important factor in building “Trust” with the Employer.
India has always been at the forefront in terms of labour law compliance and providing safety and security to the workforce. This could be in the form of programs and schemes directly from the Government or mandating the Employer to provide for allowances and benefits to the Employees. What we see and receive today are legislations in place for close to a century.
Employees are the largest assets of any organization and at the same time the largest cost in the P&L of a Company. With the India growth story evident in the past couple of decades and the way we are poised for the future, there is no doubt that the workforce will remain with only that Employer whom they TRUST.
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Compliances play a significant role in building this trust in the Employer-Employee relationship and more the transparency better the trust factor. In India, different compliances impact the workforce and it is not restricted to compliances that have a direct impact or monetary benefit to the Employee. It is comprehensive under various Laws & Acts, generically termed as Labour Law Compliances. This can be bifurcated broadly into social security compliances, health & safety compliances, and workplace compliances.
The social security compliances include mandatory savings in the form of the provident fund with high tax-free interest rates, State insurance for minor and major hospital treatments for employees and family members including salary benefits in occasions of maternity and events of inability to work, minimum wages basis industry and nature of work, equal remuneration, statutory bonus, subsistence allowances, gratuity, and protection for contractual labour.
The four needs are – Roti, Kapda, Makaan aur Sehat. For Roti & Kapda, the Company provides salary that is equivalent to or better than most of its competitors, for Makaan they provide housing loans at reduced interest rates and for Sehat, they cover under insurance the Employee and all family members.
The health, safety, and workplace compliances include workplace safety standards, norms to be followed for hazardous nature of work, extra allowance, safety kits and breaks to be provided for employees engaged in the hazardous nature of work, maternity benefits, mandatory holidays & leaves, and dispute resolution procedures.
All of the above are to be notified, published, and made available in a transparent manner to the employees. Some of the information is to be published internally which is audited periodically by relevant authorities and some of the information is to be periodically submitted to relevant authorities who publish the information or provide it on demand. This ensures complete transparency for the employer and employee.
There are strong governance mechanisms within the organization and from authorities to ensure that the compliances are adhered to along with heavy penal provisions in the event of default. This ensures there is a proper balance between the intention and execution to adhere to compliances which enables better employee relations, improved trust, and higher transparency.
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