An Indian workplace compliance audit found 4,694 instances of non-compliance across 52 sites operated by leading enterprises, with gaps identified at every site, TeamLease RegTech said in a report.

Key Takeaways

  • The audit covered factories, warehouses, corporate offices and mines across 17 states and union territories.
  • Labour and environmental laws accounted for 92% of the identified gaps.
  • The companies had commissioned compliance audits, so the findings cannot be generalized to all Indian workplaces.

Indian workplace compliance risks

The audit identified an average of around 90 gaps per workplace. TeamLease RegTech said roughly 70% of the gaps were punishable offences, while 46% carried the possibility of imprisonment.

Directors or senior officers were named personally in 29% of the identified gaps, and 31% attracted fines that increase with each passing day.

Where the gaps were concentrated

Labour and environmental laws accounted for 92% of the gaps, while just 10 laws contributed nearly 60% of the total. The findings indicate that the identified risks were concentrated in particular regulatory areas.

TeamLease RegTech cited regulatory complexity as a factor, saying enterprises must navigate three levels of government and obligations that can change across 3,756 union, state and local government websites. States and local bodies also set their own thresholds, forms, wage structures and penalties.

Limits of the audit

All companies covered by the study had commissioned compliance audits, TeamLease RegTech said. The results therefore describe the exposure found in those audits, rather than providing an estimate for all Indian workplaces.

The report recommends mapping applicable laws to each site, prioritizing gaps by the severity of their legal consequences and conducting regular on-ground audits that include contractors and warehouses.

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