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Statutory Compliance

Ensuring Legal and Regulatory Adherence

What Is Statutory Compliance?

Statutory compliance refers to adhering to the legal framework set by government authorities regarding labour laws, taxation, social security, and workplace safety. It involves systematic monitoring, management, and reporting of activities to ensure all statutory obligations are met. Navigating the complex landscape of labour laws and regulatory requirements can be challenging for businesses. Non-compliance can lead to significant penalties, legal complications, and reputational damage. At Jari Kart Pvt. Ltd., our statutory compliance services are designed to ensure the organization adheres to all applicable laws, safeguarding the business while fostering a compliant and ethical work environment.


Key Components of Our Statutory Compliance Services

1. Labor Law Compliance:

Labor law compliance protects employee rights, minimizes legal risks, and fosters a fair, safe, and efficient workplace. Organizations must continuously monitor legal updates and ensure adherence to avoid penalties and reputational damage.

I. Wages and Compensation

  • Minimum Wages Act, 1948:Ensures employees receive at least the prescribed minimum wages.
  • Payment of Wages Act, 1936: Regulates timely and full payment of wages.

II. Employment Contracts

  • Clear and legally compliant employment contracts including:
    • Appointment letters
    • Terms of employment
    • Notice periods
    • Termination procedures


Provident Fund (PF) Compliance:

Provident Fund compliance ensures financial security for employees and legal protection for employers. It promotes savings, provides pension benefits, and safeguards employees’ rights, making it a critical aspect of statutory compliance in the service sector.


Benefits under PF

  • Part of the employer's contribution goes to the Employee Pension Scheme (EPS), ensuring a monthly pension after retirement.
  • Employees receive life insurance benefits through the Employees’ Deposit Linked Insurance (EDLI) scheme, with a maximum coverage of ₹7 lakhs.
  • Employees can partially withdraw PF savings in emergencies, such as unemployment, medical needs, or education expenses.
  • Contributions to the PF account, accrued interest, and withdrawals (under certain conditions) are tax-exempt under the Income Tax Act, 1961.
  • Compliance ensures that employees can transfer their PF account across jobs using the Universal Account Number (UAN), maintaining fund continuity.


I. UAN Management

A unique number for employees linked to their PF accounts. Ensures easy tracking and portability of PF funds across jobs. Employees must activate and manage their UAN via the EPFO portal


Withdrawal and transfer compliance:

➢ Withdrawal: Employees can withdraw PF funds partially or fully under specific conditions (e.g., retirement, unemployment, medical emergencies).
➢ Transfer: Employees changing jobs must transfer PF balances to the new employer using their UAN

Employee State Insurance (ESI)

Compliance with ESI provisions ensures employees receive essential health, maternity, and disability benefits, enhancing their financial security and well-being. It also helps employers avoid legal penalties, maintain a positive workplace reputation, and fulfil their statutory obligations.


Benefits under ESI

  • Medical, sickness, maternity benefits.
  • Disablement Benefits: Financial compensation for temporary or permanent disability due to work-related injuries.
  • Dependents’ Benefits: Monthly pension to dependents in case of the employee’s death due to employment injury.
  • Funeral Expenses: Lump sum payment to dependents for funeral costs.

Tax Compliance:

Tax compliance ensures legal adherence, reduces risks of penalties, and builds organizational credibility. Proper tax planning and timely filings also optimize financial efficiency and cash flow management.

I. Professional Tax
  • A state-level tax imposed on professionals, employees, and business owners.
  • Deduct professional tax from employee salaries as per state regulations.
  • File periodic returns and remit payments to the respective state government.

II. Employee Tax Compliance
  • Salary Taxation: Compute taxable income for employees considering exemptions and deductions (e.g., HRA, LTA, standard deduction). Provide employees with a breakup of taxable salary and investment declarations.
  • Quarterly filing for TDS on salaries.


Gratuity and Bonus Compliance

Gratuity serves as a reward for loyalty and long-term service, ensuring financial security for employees as they transition out of employment.

  • Eligibility: Employees are eligible for gratuity if they have completed at least 4 years and 8 months of continuous service with the same employer.
  • Forfeiture:
    • Gratuity can be forfeited partially or fully if the employee is terminated due to misconduct.
    • The termination involves moral turpitude or intentional damage.
  • Only Basic Salary and Dearness Allowance (DA) are included in the calculation. Other allowances like HRA, bonus, and overtime are excluded.


Shops and Establishments Compliance

Compliance with the Shops and Establishment Act ensures better working conditions, employee welfare, and adherence to labour standards. It helps in creating a lawful and harmonious work environment, enhancing the organization's reputation, and avoiding legal penalties.

  • Applicable to shops, offices, commercial establishments, restaurants, hotels, theatres, and other establishments.
  • Establish mechanisms for resolving employee grievances.
  • Submit annual or periodic returns to the labour department as mandated by the respective state’s Shops and Establishment Act.


Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) ActCompliance

Compliance with the POSH Act fosters a respectful workplace environment, enhances employee morale, and mitigates legal risks. It also helps maintain the organization’s reputation and ensures adherence to statutory requirements for employee welfare and safety
➢ Applies to all workplaces, including private and public sector organizations, nongovernmental organizations, educational institutions, and other establishments.
➢ Conduct regular workshops and training programs for employees to create awareness about sexual harassment and the redressal process.
➢ Establish an Internal Committee at every workplace with 10 or more employees.
➢ Safeguard complainants and witnesses from retaliation or adverse consequences arising from filing or participating in complaints.


Benefits of Statutory Compliance Services

  • Legal Protection: Avoid fines, penalties, and legal disputes.
  • Enhanced Reputation: Build trust with employees and stakeholders through ethical business practices.
  • Operational Efficiency: Reduce administrative burdens and focus on business growth.
  • Employee Satisfaction: Foster a compliant workplace that prioritizes employee rights and benefits.


Industries We Serve

Our Statutory Compliance Services are designed to meet the needs of various industries, including:

  • • Manufacturing and Production
  • • Retail, E-commerce, and Quick commerce
  • • Healthcare and Pharmaceuticals
  • • Logistics and Supply Chain


Why Jari Kart?

At Jari Kart Pvt. Ltd., we are committed to helping businesses thrive in a compliant and ethical environment. With our expert guidance, you can navigate the complexities of statutory regulations with confidence and ease.