Central vs State Labour Laws: What HR Must Know
HR professionals in India often struggle with understanding which labour laws apply to their organisation. One of the key reasons is the overlap between central and state legislation. Knowing the distinction is essential for accurate compliance.
COMPLIANCE & LABOUR LAWS
Central Labour Laws
Central laws are enacted by Parliament and apply across India. Examples include:
Employees’ Provident Funds Act
Employees’ State Insurance Act
Payment of Gratuity Act
These laws define broad compliance requirements.
State Labour Laws
State governments implement and administer certain laws differently. Common examples:
Shops and Establishments Act
Professional Tax regulations
Labour welfare fund rules
Applicability varies by state and location.
HR Practical Takeaway
HR must always check:
State of establishment
Employee headcount
Nature of business
Central laws set the framework; states shape implementation.
This article supports our guide on Understanding Labour Law Compliance for Indian Employers.
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