COMPANY SECRETARY ROLE IN LABOUR LAWS!!!
Company Secretaries are known as a vital link between the company and its Board of Directors, shareholders, government and regulatory authorities and ensures that Board procedures are followed and regularly reviewed and provides guidance to Chairman and the Directors on their responsibilities under various laws including Labour Laws.
Company Secretaries have been performing the task of one of the Principal Officers of the company under various enactments. The detailed educational background, legal knowledge and training that a CS acquires, makes him a adaptable professional capable of rendering a wide range of services to companies of all sizes, co-operative and other corporate bodies, firms etc. A Company Secretary is associated with the planning process, judgment, and compliance of various laws, financial matters, administration of general management and administration of tax laws including Labour Laws.
A Practicing Company Secretary, advises on good governance practices and compliance of various laws like Corporate Laws, Industrial Laws, Labour Laws and other Governance norms as prescribed under the Companies Act 1956, Listing Agreement with Stock Exchanges and compliance of various labour laws.
The compliance of Labour Laws is as important for good corporate governance as any other corporate, economic and securities laws. A Practicing Company Secretary by virtue of his knowledge and expertise in Labour Laws is competent enough to render value added services in ensuring the compliance of various Labour Laws to protect and further the interests of labour, industry and all stakeholders and at same time prevent unwanted lawsuits and penalty for non compliance.
Some of the important compliance work that can be undertaken by a Company Secretary under Labour Laws is enumerated hereunder:
- Registration of the establishment under various applicable Labour legislations.
- Submission of returns on a regular basis.
- Maintenance of appropriate records with regard to employees of the establishment under various labour legislations.
- Ensure adequate facilities have been provided for the employees on behalf of the establishment under various labour legislations.
- Draft employment agreements between the employer and employee and also specific non-disclosure agreements if required.
By undertaking the above mentioned activities, a Company Secretary can achieve the following:
- Compliance with labour laws and regulations.
- Set up adequate internal control system to minimize risks.
- Identify gaps and adequate measures to rectify the same.
- Implement an adequate system to ensure regular and timely compliance of the provisions of law.
- Prevent lawsuits and penalties for non compliance.
Courtsey: ICSI + CS Rajkumar
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