Labour law compliance
for every Indian business type
Factories Act shift registers, Shops & Establishments muster rolls, BOCW cess tracking, contract labour registers, Maternity Benefit Act leave, and Minimum Wages Act salary floors - all managed inside CrmLeaf HRMS.
India Labour Law - 6 HR challenges CrmLeaf solves
Every requirement is specific to India labour law. Generic global HRMS tools don't handle these - CrmLeaf does.
The Factories Act, 1948 requires every factory to maintain Form 25 (Register of adult workers), Form 12 (Register of overtime), and muster rolls for every shift. Handwritten registers that go missing during audits are a common source of penalties and litigation.
Section 59 of the Factories Act, 1948 mandates overtime pay at twice the ordinary rate for hours worked beyond 9 per day or 48 per week. Many employers pay 1.5x, not realising India's rate is 2x - under-payment is a criminal offence with up to 2 years imprisonment for the occupier.
The Maternity Benefit (Amendment) Act, 2017 extends maternity leave to 26 weeks for the first two children (12 weeks from the third child onwards) for establishments with 10+ employees. A creche facility is mandatory for 50+ employee establishments.
The Building and Other Construction Workers Act, 1996 mandates registration of construction workers with the state BOCW welfare board, payment of 1% cess on construction cost, and welfare benefits. Non-registration prevents workers from accessing safety nets.
Establishments employing 20+ contract workers, and contractors employing 20+ workers, must register under the Contract Labour Act. Principal employers bear liability for contractor compliance, with registers, muster rolls, and wage records maintained separately.
The Minimum Wages Act, 1948 sets state-specific minimum wages by occupation and skill category, revised periodically by state governments. Paying below the applicable minimum wage is a criminal offence, and with 36 state and UT schedules, manual tracking is impractical.
Overtime below double rate for factory workers is a criminal offence - not just a compliance issue
Under Section 59 of the Factories Act, 1948, every factory worker who works overtime is entitled to wages at twice the ordinary rate - not the 1.5x (time-and-a-half) used in many countries. Many Indian businesses, especially IT-enabled manufacturing, apply 1.5x OT because that’s the global default in their payroll software. The occupier of the factory can be prosecuted under Section 92 of the Factories Act for this violation.
Every feature built for India labour law compliance
Factories Act Section 59 overtime automatically applied at 2x for shift workers in factory settings. Office workers are configured separately at 1.5x or a flat rate - one configuration, correct output.
Shift attendance records maintained in CrmLeaf serve as digital equivalents of Form 25 and muster rolls required under the Factories Act - exportable for labour inspector visits.
26-week maternity leave pre-configured for qualifying establishments. Creche facility reminder triggered at 50+ employees, with a work-from-home flag for eligible roles in the approval workflow.
Construction worker registration status, renewal deadlines, and BOCW cess calculation tracked per project. Wage registers and muster rolls maintained per BOCW board requirements.
Separate classification for contract employees. Contractor registers, muster rolls, and wage records maintained per the Contract Labour (Regulation & Abolition) Act, 1970.
State-wise minimum wage schedules maintained. Every payroll run is checked against the applicable minimum wage for each employee's state, occupation, and skill category - violations flagged before approval.
We had three factory locations across Maharashtra and Karnataka. Keeping overtime registers and ensuring the 2x OT rate was applied - not 1.5x - was something our old software simply didn't know about. CrmLeaf got it right on the first configuration. The labour inspector audit last year was the smoothest we've had.
CrmLeaf HRMS for India Labour Law - FAQ
India labour law compliance -
built into every payroll run.
Start your 15-day free trial. Configure factory overtime at 2x, maternity leave, and minimum wage monitoring - all in one platform.
