Implementation Of Do's & Dont's In Labour Law Compliances
Explain the recent changes to India's labour laws and how they will help businesses prepare for the future.
The Indian Government has been focussing on facilitating ease of doing business, simplifying compliances, elimination of duplication, decriminalizing non compliances and digitalization to facilitate consolidation & integration. These initiatives will encourage businesses to move towards 100 percent compliances, have higher transparency between organization and authorities and an efficient grievance redressal mechanism. With as many as 23 States having adopted the new labour laws, drafting the Rules and presenting to relevant stakeholders for comments, it is highly probable that the implementation may happen soon. Every business would need to understand the new labour laws and its impact on the employer and employee since these laws are being reviewed after many decades, it aims to increase coverage of the community and comes with a monetary impact. We wait for more clarity on the implementation to be able to comment on how it will help the businesses in future.
UP and MP have exempted manufacturing establishments from the purview of most labour laws. Has this led to social chaos? Your viewpoints.
UP and MP have given exemption from certain labour laws where it is not clear whether this is temporary or permanent and also if it would be reviewed once the new labour laws come into place. The rationale by the said State Governments initially was to support organizations post the pandemic impact and recently to facilitate greater investment in the State and boost economic activity. In my view, there is no chaos due to these announcements but the Central Government has to review the scope of States in announcing exemptions which could have an impact on general community of Employers and Employees across the country else we would end up having a non uniform labour, employment and social laws in various States which may result in non uniform growth and demographic spread.
Every business would need to understand the new labour laws and its impact on the employer & employee since these laws are being reviewed after many decades
How has Core Inetgra’s journey been in the Indian markets and growth strategy
Core Integra has been a leader in the Labour Law Compliances space for over a decade servicing 750+ Clients across 24 industries pan India in the areas of Advisory, Outsourcing and Technology. Core Integra is one of the very few Companies which offers a comprehensive digital platform (Ctrl F) to ease compliance management, reporting and provides higher governance and control to the Organization. It can easily be integrated with Client’s internal software. Over the last few years, Ctrl F is being offered in SaaS model which has received a very positive response from the industry. Our objective is to ensure maximum penetration of Ctrl F in India to facilitate ease of understanding and adherence to 100 percent compliance requirements by Organizations. Overall, its been an exciting journey for us in the Indian markets and with the Government focussing on simplifying compliances, we expect it to scale in a robust manner in the years to come.
We have large expansion plans for the coming financial year. The first priority is to increase the penetration of CtrlF in domestic markets for which there are many initiatives in the pipeline. There are a good number of product enhancements along with introduction of new age technologies over the next 6-9 months. We are confident of enhancing the relationship with existing Clients across product lines and also achieving a three digit percentage growth in Client acquisition for which the team size on technology and services side is being scaled. We are also looking forward to opening new offices in India.
On the international front, there are some plans but its quite early to reveal the same.
What are the key takeaways from the Union Budget'23 regarding labour/employee compliance?
it is encouraging to note that the Hon. FM has increased the base tax slabs from 5 lacs to 7 lacs, simplified the tax slabs and tax rates, reduced the highest tax rates and has taken a step towards moving to single tax regime by making the New regime as the default one from Budget 2023. This would be a welcome announcement for all salaried class community. Quicker refund processing, which has been experienced by many in the current financial year is definitely appreciated. It would have been beneficial if the sec. 80C limits was increased and the housing sector given a boost through increased loan interest exemption limits u/s 24. Overall satisfactory announcements towards the salaried class after quite a few budgets, am sure it would have a positive impact on this community.
What problems do the industries face with regard to compliance or HR solutions?
Most of the HR solutions available in the market is either not aligned to the Indian manner of working and/or not comprehensive hence the Organizations have to look at 2-3 software catering to different requirements and then integrate the same at their cost. As a step towards end to end comprehensive HR cum Compliance solution for organizations, Core Integra has partnered with various HR solution providers to offer an integrated HR cum Compliance solution in the market. We have such partnerships with eight leading HCM suites and in the last one year that we have moved in this direction, we have approx. 20 Clients who are using such an integrated platform with very positive feedback which is encouraging us to partner with most of the reputed HCM suites in India by end of next fiscal year.