Shops and Establishments Act

Most NGOs are covered under the respective state’s Shops and Establishments Act. This law governs working hours, holidays, and employment conditions.

• Requires NGOs to register with the state labor department
  
• Mandates maintenance of attendance, leave, and wage records
  
• Regulates working hours, rest intervals, and weekly offs
  
• Applies to administrative offices and non-field staff in urban areas
  
• Includes provisions for maternity benefits and grievance redressal

Payment of Wages and Minimum Wages Acts

These laws ensure fair compensation and timely payments to employees. NGOs must ensure compliance irrespective of funding sources.

• Salaries must not fall below notified minimum wages for category and region
  
• Wages must be paid before the 7th or 10th of each month
  
• NGOs must issue salary slips and maintain payment registers
  
• Deductions must be lawful and explained to the employee
  
• Workers must be classified as skilled, unskilled, or clerical for compliance

Employees’ Provident Fund (EPF) Act

EPF is mandatory for NGOs with 20 or more employees and optional for smaller ones. It provides retirement and social security benefits.

• NGOs must register with EPFO and obtain an establishment code
  
• Deduct 12% of basic salary from employee and match the contribution
  
• Deposit contributions monthly and file ECR returns
  
• Maintain PF numbers and facilitate transfers when employees leave
  
• Issue annual PF statements to all eligible staff

Employees’ State Insurance (ESI) Act

ESI applies to NGOs employing 10 or more persons earning below a wage ceiling. It offers healthcare and social security to employees.

• NGOs must register with the ESIC regional office
  
• Deduct 0.75% from employee and contribute 3.25% as employer
  
• Provide ESI cards and ensure access to empaneled hospitals
  
• File monthly returns and maintain employee ESI records
  
• Benefits include medical care, disability, and maternity cover

The Sexual Harassment of Women at Workplace Act

This law mandates that all workplaces, including NGOs, ensure safety and dignity of women staff. Internal complaint mechanisms are required.

• NGOs with 10 or more staff must form an Internal Complaints Committee
  
• Display the policy and contact details of the committee publicly
  
• Conduct awareness and training on prevention of sexual harassment
  
• Investigate complaints confidentially and complete within 90 days
  
• Submit annual compliance reports to the District Officer

Gratuity Act and Other Welfare Laws

Eligible employees are entitled to gratuity and other statutory benefits upon completion of continuous service. NGOs must comply once thresholds are crossed.

• Gratuity applies to NGOs with 10 or more employees under the Payment of Gratuity Act
  
• Eligible after 5 years of continuous service for retirement, resignation, or death
  
• NGOs must calculate and pay gratuity as per formula prescribed by law
  
• Other laws such as Equal Remuneration Act and Maternity Benefit Act also apply
  
• Non-compliance may attract penalties and employee litigation under labor law authorities