TeamLease RegTech, India’s premier Regulatory Technology (RegTech) solutions provider, has unveiled a whitepaper on the occasion of International Labour Day. This comprehensive document delves deep into the historical, present, and future landscape of labour law compliances in India. It meticulously traces the evolution of the existing regulatory framework while shedding light on the myriad challenges confronted by both workers and employers.

As per current regulations, employer compliance in India is governed by a staggering 1,536 acts and rules, encompassing 69,233 compliances and 6,618 annual filings. Alarmingly, a significant portion of these obligations, totalling 26,134, entail imprisonment as a penalty for violations. Labour-related legislations constitute a substantial portion of these obligations, constituting 30.1% of the total applicable acts and rules, 47% of the total compliances, 46% of the filings, and a substantial 68% of provisions with clauses for imprisonment.

The adherence to labour compliance mandates necessitates enterprises to handle sensitive employee data encompassing PAN, UAN, Aadhaar, Contact Information, Address, Financial Details, among others. Without adequate safeguards, this data is susceptible to exploitation by malicious actors, potentially resulting in significant harm. The enactment of the Digital Personal Data Protection Act, 2023 seeks to address regulatory loopholes concerning the collection, storage, processing, sharing, and disposal of sensitive Personal Identifiable Information (PII). Traditionally, labour consultants have heavily relied on spread sheets for data management, posing inherent vulnerabilities. Leveraging technology-driven digital solutions can empower these stakeholders to meet stringent data confidentiality requirements mandated by the DPDP Act and forthcoming regulations.

According to Sandeep Agrawal, Director  & Co-founder, Teamlease RegTech, "India’s existing labour laws, rooted in the colonial era, are fraught with duplication, redundancy, and overlap. With our demographic dividend peaking, the nation stands on the cusp of vast possibilities and opportunities for its workforce. Ensuring access to suitable employment and training avenues is imperative for India to realise its ambition of becoming a $10 trillion economy by the decade's end. Empowering the burgeoning workforce to unlock its full potential is pivotal in capitalising on this 'Amrit Kaal.' The newly enacted labour codes lay the groundwork necessary to accommodate the nation's growth aspirations. Embracing a three-vector approach encompassing rationalisation, digitisation, and decriminalisation of India’s compliance ecosystem will serve as the linchpin of this success."

The whitepaper furnishes a concise overview of the evolution of labour legislation in India, encompassing extant union acts and their recent codification. It scrutinises the criminalisation of compliance and the myriad challenges encountered by entrepreneurs and employers within the prevailing regulatory framework. Furthermore, it meticulously dissects recent labour reforms and codes, elucidating the key amendments introduced and ensuing compliance obligations.

In its concluding remarks, the paper offers insightful recommendations on compliance reforms aimed at enhancing the ease of conducting business and furnishing contemporary compliance management solutions for employers.