4 Reasons why Labour Laws are important in Business

labour laws in India play a significant and vital role in the corporate sector. The laws exist so that employees are treated appropriately in work environments and so their rights as an employee are protected. Labour laws ensure that employers are valued for their expertise and that they are compensated accordingly.

Labour law compliance is one of the components of a human resources audit, many of which are conducted annually. However, you can perform a compliance check regarding laws to which your company must adhere on a more frequent basis or whenever your workforce and organizational structure changes. A quick check of employment processes, such as pay practices, leave benefits and mandated postings ensure your company's compliance with federal and state labour and employment laws.

Although workers are expected to adhere to their agreement in a work contract, they still cannot be subjected to ill-treatment. Company policies should not discriminate or devalue employees, but rather elevate the employee experience.

Through benefits and skills development plans, companies can ensure that they are in line with these laws. Employees should be able to enjoy leave, breaks and other company benefits. Skills development is now a priority for companies. In this way, when employees enrich their skills, the company promotes from within.

Let’s have a look at the 4 causes why labour laws are so important.

1. Employees rights are protected

Employees have rights that protect them in any work environment. These rights containing fair working hours, lunch and leave breaks, as well as work in healthy environments. These laws protect employees from being exploited in the workplace.

Within the South African context, the occupational health and safety act also ensures that employee conditions are safe and that there isn’t any risk involved in their jobs. The compensation for injuries and diseases act is there to ensure that employees who become ill are compensated by the business. According to this act, if an employee gets injured in the workplace, the company covers the cost.

2. Employees Skills Development uplifts the Business

The industry can work with its human resources division to come up with employee expansion programmes. The skills development and amendments act exists to better the lives of workers. Employees can develop professionally and change their lives for the better.

Skills training initiatives are about empowering staff so that they can become experts in certain areas. Their skills allow them to operate in higher roles, which means they can get promoted within the business.

3. Higher Employee retention Rate

With labour laws act in India implemented, firms are able to keep its employees happy. There is a common understanding between both parties that minimise labour disputes. These laws are there to help avoid employee unrest, which can cause feuds between employers and the company. Labour laws and contract contracts allow for issues to be resolved efficiently between the employer and employee.

If a company is looking to retain its employees. It’s vital for them to use labour laws act in India as a guide on how to run the organisation and treat their employees. This is a strategy that ensures talent stays within the business and it further adds to the value of the company. Companies with good employee reviews are likely to attract more talent to their organisations.

4. Labour laws contribute to Business Success

Labour laws create a peaceful relationship between employers and business. Employers can work hand-in-hand with the business to achieve company goals. With good working conditions, benefits and rights, employees become more cheerful in their jobs and they become positive about their prospects in the business. This creates passionate employees who are proud to associate themselves with a business and even become the company’s greatest advocates.

Having knowledge about the labour law act as a business ensures that both the company and the employee is protected. This allows for appropriate processes to be put in place to deal with situations that may arise.

Why Labour Relations is a great Profession to be in

Labour relations is a profession that allows you to help organisations to align themselves with the correct labour laws. As a labour relations practitioner, you can bring your expertise to educate companies on what they can do to ensure compliance.

A labour relations qualification allows you to branch into multiple roles in the labour market. You can become a labour law office, labour attorney, health and safety practitioner etc.

As you work in this role, you enlighten companies on what’s required of them in terms of these laws. You can also represent employees or educate them on their rights according to South Africa’s labour act. Professionals and companies can tap into your expertise for when faced with labour disputes or other issues.