Statutory Compliance Checklist for HR in India

statutory compliance checklist for hr in india

Have you or your contacts experienced HR and statutory compliance problems in the past 3 months? Every organization operates under rules and regulations by various local, state and central authorities. The HR statutory compliance checklist is essential to ensure the organisation doesn’t face any legal complications.

HR statutory compliance signifies the adherence to legal standards and regulations governing employee relations and workplace conditions. This concept combines “statutory,” meaning laws established by legislation, with “compliance,” referring to the act of following these laws. 

The HR statutory compliance checklist is a vital tool, outlining procedures and policies to align with laws at various levels, thereby promoting a fair, healthy workplace and safeguarding against legal challenges.

Statutory Compliance Checklist for HR in India

Adherence to statutory HR practices is essential for Indian businesses, with the HR Statutory Compliance Checklist serving as an important resource. This tool aids in navigating the regulatory framework, ensuring legal adherence and maintaining ethical workplace standards. Organizations can significantly reduce compliance risks and promote a legal, supportive work environment by methodically addressing and updating legal obligations. 

1. Workplace Health and Safety Compliance

Organizations must familiarize themselves with the Factories Act, 1948 for governing workplace health and safety in India. The Factories Act, 1948 will be replaced by a new code The Occupational Safety, Health and Working Conditions Code, 2020 as may be notified in the official gazette. It is important to maintain statutory compliance and foster a safe, healthy and equitable work environment by conducting thorough risk assessments to identify potential hazards. This involves ensuring all registrations, licenses and permits are up to date, as well as conducting regular workplace safety inspections to identify and mitigate risks through the implementation of fire safety protocols, emergency exits and first-aid facilities.

It is also important to provide safety training and awareness programs for all employees, maintain regular health check-ups and securely manage employee medical records. Organizations should adhere to statutory benefits like provident funds, gratuity and health insurance, and review and update employee welfare measures, including working hours, maternity benefits and leave policies. Updating all compliance-related records and activities, displaying all required postings and notices prominently and conducting regular reviews to ensure they reflect current practices are fundamental.

2. Compensation and Benefits Compliance

HR compliance in this regard is crucial to guarantee that employees are fairly compensated for their work and that the organization meets its legal obligations. The regulations that apply here are as follow:

  • Employee Provident Fund (EPF): Organizations with over 20 employees must open EPF accounts for their employees. EPF requires deducting and contributing a portion of employees’ salaries to their provident fund accounts, ensuring their financial security post-employment.
  • Employee State Insurance (ESI) Act, 1948: Employers with 10 or more employees must register under the Employees’ State Insurance Act and contribute a percentage of employee’s salaries to provide them with medical and disability insurance benefits.[3] [4]
  • Bonus and Gratuity: Compliance with the Payment of Bonus Act, 1965[5] mandates the payment of annual bonuses to eligible employees. Additionally, the Payment of Gratuity Act, 1972[6] requires employers to provide gratuity payments to eligible employees upon termination, retirement or death, ensuring financial security in the long term.

3. Equal Opportunity and Anti-Discrimination Laws

Ensuring equal opportunity and preventing discrimination are fundamental aspects of HR compliance in any organization. The Acts and policies governing this are as follow:

  • Equal Remuneration Act, 1976: This act mandates equal pay for equal work, irrespective of gender, ensuring that employees receive fair compensation for their contributions regardless of their gender identity. [7]
  • Rights of Persons with Disabilities Act, 2016: This legislation aims to protect the rights and promote the inclusion of persons with disabilities in the workplace. HR compliance involves making reasonable accommodations to enable persons with disabilities to perform their job duties effectively and provide accessible facilities. [8]
  • Prevention of Sexual Harassment at the Workplace Act, 2013: This act requires organizations to create a safe and harassment-free work environment for all employees. Compliance entails establishing a robust anti-sexual harassment policy, conducting awareness training sessions, setting up Internal Complaints Committees (ICCs) and ensuring prompt and impartial investigation and resolution of harassment complaints.[9]
  • Equal Opportunity Policies: There must be the implementation of comprehensive equal opportunity policies that prohibit discrimination based on factors such as race, religion, caste, gender, sexual orientation, age or marital status. Compliance involves promoting diversity and inclusion initiatives, conducting regular diversity training and addressing any instances of discrimination promptly and effectively.

4. The Maternity Benefit Act, 1961[10]

The Maternity Benefit Act, 1961 aims at providing comprehensive benefits and protection to pregnant women during the maternity period. Under the Maternity Benefit Act, a pregnant woman is entitled to maternity benefits if she has worked in an organisation for a minimum of 80 days in the 12 months preceding her expected date of delivery. This act mandates that eligible female employees be provided with paid maternity leave for a specified duration of up to 26 weeks of maternity leave.

The key provision of the Act is the protection of employment for pregnant women, it stipulates that a woman returning from maternity leave cannot be dismissed from her employment during the period of her absence.  Its primary focus is on providing paid maternity leave to female employees to ensure their well-being and that of their newborns. 

Frequently Asked Questions

1. What constitutes a statutory compliance checklist for HR?

The HR statutory compliance checklist encompasses a comprehensive list of legal requirements and regulations that organizations must adhere to in their HR practices. It typically includes items such as minimum wage compliance, working hours and overtime regulations, leave entitlements, employee benefits, workplace health and safety anti-discrimination policies and more. This checklist serves as a tool for HR professionals to ensure that their organization complies with all applicable laws and regulations.

2. How frequently should HR departments review their statutory compliance checklist?

HR departments should review their statutory compliance checklist regularly to ensure ongoing adherence to evolving laws and regulations. The frequency of reviews may vary based on factors such as changes in legislation, organizational growth and industry dynamics.

3. What are the most critical elements of a statutory compliance checklist for HR?

The most critical elements of a statutory compliance checklist for HR include minimum wage compliance, working hours and overtime regulations, leave entitlements, employee benefits, workplace health and safety and anti-discrimination policies. These elements ensure that organizations adhere to legal obligations, protect employee rights and minimize legal risks associated with non-compliance.

4. How can HR departments ensure their statutory compliance checklist is up-to-date?

HR departments can ensure their statutory compliance checklist is up-to-date by staying informed about changes in laws and regulations relevant to their jurisdiction and industry. This can be achieved through continuous monitoring of legislative updates, participation in professional development activities such as seminars and webinars and engaging with legal experts or consultants for guidance.

5. What challenges do HR departments face in achieving statutory compliance?

HR departments face various challenges in achieving statutory compliance, including keeping up with rapidly changing laws and regulations, interpreting complex legal requirements, ensuring consistent application across diverse workforce demographics and geographical locations, managing data privacy and security concerns and navigating cultural or organizational resistance to change.

6. How can these checklists help mitigate these challenges?

These checklists help mitigate challenges by providing a structured framework for HR departments to systematically assess and address statutory compliance requirements. By clearly outlining legal obligations and specifying actionable steps for compliance, checklists enable HR professionals to stay organized, track progress and prioritize efforts effectively.


The HR Statutory Compliance Checklist in India serves as a comprehensive guide for organizations to ensure legal adherence and uphold ethical standards in HR practices. It provides a valuable framework for HR professionals, it’s important to acknowledge the complexity of statutory compliance and the need for expert guidance.

As laws and regulations continue to evolve, organizations may benefit from the expertise of legal professionals specializing in employment law. Burgeon Law is here to provide the necessary support and guidance to navigate the intricate landscape of statutory compliance, ensuring that organizations remain abreast of emerging laws and regulations while upholding legal standards and organizational integrity.

Explore More


Contact Us

    burgeon law white logo


    As per the rules of the Bar Council of India, law firms are not permitted to solicit work and advertise.

    By clicking the “Agree” button and accessing the website, the visitor fully understands and accepts that the contents herein are solely for informational purposes and should not be interpreted as solicitation or advertisement. The firm is not liable, in any manner, for the consequences of any action taken by a visitor relying on materials/ information provided on the website. The firm urges visitors to seek independent legal advice for any legal issues.