1. Legal And Regulatory
Requirements Related To An
Organization .
Submitted By :-
Mansi Gupta
M.Voc.(FPM) 3rd
Sem

2. Introduction
Taking steps to meet your legal obligations might seem like a management no-brainer, but only
fulfilling your minimum requirements might result in missed opportunities. Understanding the
reasons for the various rules, laws and regulations that govern your business will help you take
advantage of any benefits they offer while ensuring you stay in compliance at all times.
In its business sense, “compliance” refers to a company meeting its legal obligations, often to
protect the health, safety and welfare of others. Simple examples of compliance include
obtaining a business license in your town and paying your taxes.
• Compliance Demands Grow with Your Business
• Reduced Legal Problems
• Improved Operations and Safety
• Better Public Relations
• Higher Employee Retention

3. Legal Environment of Business
When commerce is transacted, several areas of business law are affected. Depending on the
type of business you manage, there could be many regulations and legal obligations you must
comply with in order to operate the company. Businesses can be impacted by statutes in
different disciplines, such as tax laws, material handling laws, and employment laws.
Whether you are establishing a business organization, protecting proprietary information,
shipping products across state lines, or managing employees, certain business laws affect all
companies. The following areas cover companies in most industries:
• tax laws
• environmental laws
• consumer protection laws
• employment and labor laws

4. • antitrust/fair competition laws
• interstate commerce laws
• license and permitting laws
• contract laws
• intellectual property laws
• financial regulation laws
• bankruptcy laws.

5. Employment Law
When employees are under a management or control structure, they are protected against offenses
committed by the company and provided rights as a consequence of employment. The following sections
provide an overview of protections for all employees.
• Harassment: Sexual Harassment, Intimidation, Offensive Acts
Employees must know they work in a fair workplace environment. Hiring practices, company policies, and
employment activities must be seen as reasonable from a logical observer's perspective. Additionally, if an
employee feels as though he or she is being intimidated, ridiculed, or otherwise threatened, that person has
the right to protection from being fired or suffering further harassment.
• Wages and hours: According to the Department of Labor, the Fair Labor Standards Act (FLSA) prescribes
standards for wages and overtime pay. This act affects most private and public employment, and requires
employers to pay covered employees at least the federal minimum wage and overtime pay of one-and-one-
half-times the regular rate of pay (unless they are exempt employees).
• Workplace safety and health: The Occupational Safety and Health Administration (OSHA) requires that
employers, under the OSH Act, “provide their employees with work and a workplace free from recognized,
serious hazards.” The OSH Act is enforced through workplace inspections and investigations.

6. • Equal opportunity: Most employers with at least 15 employees must comply with equal opportunity laws
enforced by the Equal Employment Opportunity Commission (EEOC). The EEOC mandates that certain hiring
practices, such as gender, race, religion, age, disability, and other elements are not allowed to influence
hiring practices.
• Non-US citizen workers: The federal government mandates that employers must verify that their employees
have permission to work legally in the United States. There are several employment categories, each with
different requirements, conditions, and authorized periods of stay (for employees who are not legal residents
or citizens).
• Employee benefit security: If your company offers pension or welfare benefit plans, you may be subject to a
wide range of fiduciary, disclosure, and reporting requirements under the Employee Retirement Income
Security Act.
• Unions: If your business has union employees, you may need to file certain reports and handle relations with
union members in specific ways. See the Office of Labor Management Standards’ website for more
information.
• Family and medical leave: The Family and Medical Leave Act (FMLA) requires employers with 50 or more
employees to provide 12 weeks of unpaid, job-protected leave to eligible employees for the birth or
adoption of a child, or for the serious illness of the employee or a spouse, child, or parent

7. Environment Law
As the 21st century begins, business managers must contend with increasing regulations affecting the company's
place in the natural world. Environmental laws have been commonplace since the early 1970s.
Business managers must be diligent in monitoring activities that could adversely affect the environment.
Companies must immediately notify the community if public health is compromised. Violations of most laws
result in heavy fines and can close operations if the issues are not resolved. Many industries have specific
regulations affecting their operations.
The list of legislation that a company is required to abide by is:
· The Water (Prevention and Control of Pollution) Act, 1974
· The Air (Prevention and Control of Pollution) Act, 1981
· The Environment (Protection) Act, 1986 – This act entails the following rules:
a) The E-Waste (Management) Rules, 2016
b) The Bio-Medical Waste Management Rules, 2016
c) The Construction and Demolition Waste Management Rules, 2016

8. d) The Hazardous and Other Waste (Management and Transboundary Movement) Rules, 2016
e) The Manufacture, Storage and Import of Hazardous Chemicals Rules, 1989
f) The Coastal Regulation Zone Notification, 2011
g) The Environment Impact Assessment Notification, 2006
h) The Plastic Waste Management Rules, 2016)
• The Wild Life (Protection) Act, 1972
• The Forest (Conservation) Act, 1980
• The Public Liability Insurance Act, 1991
• The Biological Diversity Act, 2002
• The National Green Tribunal Act, 2010

9. Environmental Permits (Single or Separate) for businesses in India
The Ministry of Environment, Forests, and Climate Change, from 5th March 2016, has adopted a method of
categorizing each type of industry. A concept of “white industries” was introduced for classifying “non-polluting”
corporations. They don’t require a permit or consent and only need to notify the relevant State Pollution Control
Board.
For every others (red, orange and green industries), there are few environmental permits that are obligatory to be
acquired. A company may require multiple numbers of permits relying on what kind of activity the business is
carrying out and the size of the business. The corporation shall be given a Pollution Index (PI) score, contingent on
the use of the resources, the air emissions, water effluents, as well as hazardous waste generated. The corporation
re required to get consents and permits from the appropriate board.

10. Contract Law
When a sale is made, a contract is born. Depending on the transaction, a number of laws could
impact the result of that sale. At the heart of business is the contract; therefore, contract law
governs nearly every commercial endeavor. The days of the handshake agreement are long
gone, and business managers must now execute written agreements reviewed by attorneys.
Law of contracts in India defines Contract as an agreement enforceable by law which offers
personal rights, and imposes personal obligations, which the law protects and enforces against
the parties to the agreement. The general law of contract is based on the conception, which
the parties have, by an agreement, created legal rights and obligations, which are purely
personal in their nature and are only enforceable by action against the party in default.

11. Based upon the varying and diverse business requirements, these contracts are broadly divided into the following
major categories:
• Contracts regarding the distribution and sale of products and goods
• Employment related Contracts
• Partnership Agreements
• Indemnity Agreement
• Supplier Contracts
• Advertising Contracts
• Real Estate Leases
• Machinery and Equipment Leases
• Transportation Contracts
• Agreements with Banks and Insurance Company
• Joint Venture Agreement
• Franchising Agreement
• Agreements with other companies and agencies involved in the business

12. Consumer Protection Law
The Government of India introduced the Consumer Protection Act, 2019 with a goal to provide protection of the
interests of consumers against unfair trade practices in India and to establish authorities for timely and effective
administration and settlement of consumers’ disputes in India.
This dynamic Act recognizes the rights of every consumer in our country and aims at protecting and securing the
same by enacting penalties and regulations to control the vast spreading web of unlawful business affairs in India.
Rights of Consumers as per the Provisions of the Consumer Protection Act, 2019 are:
• Right to be protected against marketing of goods and services that are hazardous to life and property;
• Right to be informed about the quality, quantity, standard, and price of goods or services so as to protect the
consumer against unfair trade practices;
• Right to receive assured access, wherever possible, to a variety of goods and services at competitive prices;
• Right to be heard and to be assured that consumers interests will receive due consideration at appropriate
forums;
• Right to seek redressal against unfair trade practices;
• Right to consumer education.

13. Reasons to file consumer complaints:-
• Unfair trade practices
• Food adulteration
• Misleading information
• Deficiency in service
• Delivery of damaged/defective items
• Delay in delivery/ non-delivery of purchased items
• Non-initiation of return/refund against refundable items

14. Anti-trust Law
Anti-trust law meant from the statutes to guard customers from predatory business practices. They make sure
that truthful competition exists in Associate in nursing open-market economy. These laws have evolved alongside
the market, watchfully guarding against would-be monopolies and disruptions to the productive ebb and flow of
competition. In other words, to protect the consumer, by promoting Competition Environment and taking actions
against the monopolists.
India’s antitrust law, The Competition Act, 2002, was fully constituted on March 1, 2009 – replacing the
Monopolistic and Restrictive Trade Practices Act of 1969. The Competition Act monitors any economic activity
that monopolizes competition within the market; it aims to protect consumers and small enterprises, and
ensures the freedom of trade.
What is prohibited under the Competition Act?
The Competition Act prohibits any business arrangements that could form a nexus within the chain of supply,
distribution, storage, acquisition, control of goods, or provisions of services.
While India’s laws do not prohibit ‘dominance’, its abuse through price manipulation, exploitation, or exclusion is
prohibited. An establishment has a dominant position if it can influence competitors or consumers to its
advantage.

15. Thus, the Competition Act guarantees that no enterprise abuses their ‘dominant position’ in a market through
the control of supply, manipulating purchase prices, or adopting practices that deny market access to other
competing firms
Any time a company conspires with its competitors, third-party vendors, or other relevant parties, it may run
afoul of antitrust laws. These are the issues antitrust laws strive to address, such as the following:
• Conspiring to fix market prices: Discussing prices with competitors—even if it affects a small marketplace.
• Price discrimination: Securing favorable product prices from buyers when other companies can’t.
• Conspiring to boycott: Conversations with other businesses regarding the potential boycott of another
competitor or supplier.
• Conspiring to allocate markets or customers: Agreements between competitors to divide up customers,
territories, or markets are illegal. This provision applies even when the competitors do not dominate the
particular market or industry.
• Monopolization: Preserving a monopoly position through the acquisition of competitors, the exclusion of
competitors to the given market, or the control of market prices.

16. Human Resources
At the heart of every successful business that employs more than one person is effective personnel
management. Whether it is scheduling, payroll, benefits, promotion, or firing, business managers must deal
with personnel issues constantly. Even small businesses with fewer than 10 employees face the challenge of
routinely managing various employment factors.
Human resource management (HRM) involves designing and implementing company policies, procedures, and
tracking systems in the following areas:
• Selection process: employment marketing and advertising; interview process; employment conditions,
whether full or part time and travel requirements; résumé review process; etc.
• Work time management: personnel records, payroll functions, labor records, benefits management, etc.
• Staffing requirements: scheduling, workforce planning, training, education, etc.
• Compliance issues: employment laws, safety regulations, employee manuals, financial reporting, etc.
• Termination process: employee release procedures, payroll and benefit administration, etc.

17. Human resource professionals are educated in the following areas:
• Workforce diversity: Maintaining fairness and equality among job groups and ensuring an absence of
discrimination at work are vital responsibilities. Managers must deal with issues like an aging workforce or
different cultural behaviors and values. Mid-size to large U.S. companies are required to educate their
workforce about diversity in the workplace.
• Workplace safety: Also important is providing a safe environment for workers through education,
ergonomics, and prevention standards. Policies on drug and alcohol consumption, protective equipment
use, workplace violence, and hazardous communications, among others, are required under federal and
state guidelines.
• Communications and record-keeping: Certain disclosures, announcements, and warnings are required in
several industries. Human resources managers also must record disciplinary actions, performance
evaluations, termination activities, work time, payroll and benefit earnings, and hiring documents.
• Employee performance and retention: Companies develop programs to measure and reward employee
performance through productivity standards. In addition, incentive and benefit programs enable
businesses to keep the high-producing employees.

18. List of statutes and regulations you could learn about and help your organization succeed:
1. Sexual Harassment (Prevention, Prohibition and Redressal) Act, 2013
2. The Factories Act, 1948
3. The Employees Provident Fund Act, 1947
4. The Apprentices Act, 1961
5. The Maternity Benefit Act,1961
6. The Workmen’s Compensation Act, 1923
7. The Payment of Gratuity Act, 1972
8. The Payment of Wages Act, 1936
9. The Industrial Disputes Act, 1947
10. State Wise Factories and Establishments (National, Festival and other Holidays) Act, read with State wise
Factories and Establishments (National, Festival and Other Holidays) Rules:
11. The Payment of Bonus Act, 1965
12. Child Labour Regulations (CLR)

19. THANKYOU!