Legalisation of private security
The concern for the lives of the people is a never-ending factor. In a country like India, where the population is at its peak, it is important to ensure its citizens are protected and secure. In response to the growing importance of private security agencies and the need to ensure the safety and well-being of citizens, the Government of India introduced the Private Security Agencies (Regulation) Act 2005, commonly known as the PSARA Act, which came into force on March 15, 2006. The PSARA Act seeks to establish a comprehensive regulatory framework for overseeing the operations of private security agencies. Before its implementation, the private security sector experienced a surge in agencies, each with differing professionalism, standards, and dependability levels. The lack of a uniform regulatory structure raised apprehensions regarding the quality of services offered by certain agencies, posing potential risks to public safety and security. Objectives of the PSARA, 2005: Regulating Private Security Agencies: The Act sets out guidelines and procedures for the operation of private security agencies, including requirements for obtaining licenses and adherence to specific codes of conduct. Safeguarding Public Interests: The Act aims to safeguard the public’s interests and instil confidence in the services provided by private security agencies by implementing stringent eligibility criteria, background checks, and training requirements for private security guards. Ensuring Professionalism and Competence among Security Agencies: The Act emphasises the necessity of employing well-trained and qualified security personnel, thereby enhancing the overall professionalism and competence of the private security industry. Creating a Competent Authority for Administration: The Act designates a Controlling Authority responsible for overseeing the implementation of its provisions and ensuring compliance by private security agencies. Establishing Penalties for Violations and Non-Adherence: It outlines penalties and consequences for agencies violating its provisions to maintain accountability and adherence to the Act’s guidelines. Features of PSARA, 2005: Appointment of Controlling Authority: The Act designates a Controlling Authority responsible for overseeing the implementation of its provisions. This Authority plays a pivotal role in granting, renewing, suspending, or cancelling licenses of private security agencies within a specific area of operation. It ensures that agencies comply with the Act’s guidelines, promoting public safety and security. Mandatory Requirement of PSARA License: One of the Act’s foremost features is the compulsory requirement that all private security agencies obtain a PSARA license. This license authorises them to operate legally; without it, agencies are not permitted to provide security services. Eligibility for PSARA License: To be eligible for a PSARA License, private security agencies must meet specific criteria, including financial viability, infrastructure capabilities, and adherence to the Act’s guidelines. Background verification of directors and shareholders/partners is also mandatory to ensure the agency’s credibility. Commencement of Business of Private Security Agency: The Act specifies regulations regarding the commencement of operations by a private security agency six months after obtaining the license. Agencies are permitted to provide services only after receiving a valid PSARA License. Requirements for Private Security Guards: Private security agencies must employ individuals who meet the Act’s criteria as security guards. The Act mandates antecedent verification of the guards and enforces training requirements to ensure the reliability of the services they provide. Cancellation and Suspension of PSARA License: In non-compliance or violating the Act’s provisions, the Controlling Authority is empowered to suspend or cancel the PSARA Licence. This measure helps maintain the integrity of the private security industry and ensures that the agencies operating thereunder have appropriate standards. Penalties for Violation of the Act: The Act prescribes penalties and consequences for private security agencies found in violation of its provisions. Penalties may range from fines to suspension or cancellation of the PSARA licence, depending on the severity of the breach. The Private Security Agencies (Regulation) Act of 2005, also known as the PSARA Act, has been pivotal in shaping India’s private security landscape. This legislation has laid down a comprehensive regulatory framework governing these agencies, emphasising professionalism, competence, and accountability. The PSARA Act guarantees consistent and trustworthy security services for individuals and businesses nationwide by ensuring that private security firms adhere to standardised practices. With a primary focus on enhancing public safety and security, the Act fosters a sense of reliability and trust in the services provided by private security agencies. As the PSARA Act continues to undergo progressive amendments, its ongoing impact on the private security sector remains vital in upholding the safety and security of individuals and establishments throughout India. AUTHOR: Eshwar S, 5th year B.A, LL. B(Hons.), Veltech School of Law, Chennai.
Lifting of Corporate veil
From a legal standpoint, a company is considered a separate legal entity different from its shareholders; a concept often termed the ‘Veil of Incorporation,’ established in the landmark case, Salomon v. Salomon and Co. Ltd. (1897) A.C. 22. Courts typically uphold this principle, acknowledging the company’s separate legal personality. The concept of “lifting the corporate veil” involves disregarding the corporate entity and examining the true individual who controls the company. Essentially, when the legal entity is used fraudulently or dishonestly, individuals cannot hide behind the corporate structure. In such cases, the court may penetrate the corporate facade and apply the principle known as “lifting or piercing through the corporate veil.” In the case of Woolfson v. Strathclyde Regional Council 1978 S.C. 2 (H.L.) 90, on page 96, it is said that “the corporate veil should only be lifted when specific circumstances suggest that it’s merely a facade hiding the truth.”. Statutory lifting of the corporate veil Person in default – If a company violates any provision of the Companies Act of 2013, the individual responsible for the company will face punishment, which may include a penalty, fine, or imprisonment as determined by the court or specified in the provision. The responsible person varies depending on the circumstances of each case. In such instances, the court will uncover the true offenders by lifting the corporate veil. Irregularities in the prospectus – Sections 34 and 35 of the Companies Act 2013 outline the liability for misstatements. Section 34 addresses criminal liability, while section 35 deals with civil liability. The company must issue the prospectus as per the conditions of section 26 of the Companies Act 2013, ensuring all information provided is accurate. Failure to comply with this section may result in criminal or civil liability, as applicable. Illegal acceptance of deposits from the public – If a company solicits, accepts, or permits others to provide it with funds in violation of the regulations outlined in sections 73 and 76 and fails to return the money within the specified timeframe, the court may lift the corporate veil to hold the individuals responsible for the company accountable. Those found guilty may face imprisonment for up to seven years and a fine ranging from a minimum of twenty-five lakh rupees to a maximum of two crore rupees. Fraudulently seeking investment – If an individual makes false statements, promises, or forecasts about a company to entice others to invest in it, this action will be subject to prosecution under section 447 of the Companies Act. Section 447 specifies penalties for fraud, with offenders facing imprisonment ranging from six months to ten years, along with a fine. Fraudulent conduct of businesses – During the winding-up process of a company, if the official liquidator, company liquidator, creditor, or contributor suspects that the company conducted its business to defraud creditors for fraudulent purposes, section 339 of the Companies Act allows the court to lift the corporate veil. This enables punishment for those responsible for the company’s actions. In such instances, the business owners will be held personally liable without any limitations. Furnishing False evidence – If a company provides evidence which is false under any provision of the Companies Act of 2013, the court may order the lifting of the corporate veil to hold accountable those who are using the company as a shield. Individuals found guilty of providing false evidence through oaths, affirmations, affidavits, or depositions may face imprisonment for 3 to 7years and a fine of up to ten lakh rupees. Grounds For Lifting of Corporate Veil When individuals exploit the legal system for fraudulent gain, they can’t rely on the corporate veil for protection anymore. The authorities will uncover the true individuals behind the company and hold them responsible for any wrongdoing. This action, known as the “Lifting of Corporate Veil,” is stipulated in the Companies Act of 2013. Judicial Grounds for Lifting of Corporate Veil Alongside the statutory provisions, In certain cases, Indian courts have the authority to pierce the Corporate Veil at their discretion. Here are some examples: 1. Sham Company Fraud: It is not possible for a company to engage in fraudulent activities by itself. To commit such offences, there must be a human element involved with them. Consequently, measures can be adopted to prevent fraudulent activities in the future. The courts have the power to lift or pierce the veil if they determine that certain businesses are fraudulent or deceptive. These companies serve as mere disguises, and their characteristics may be disregarded to reveal the true culprit. In Santanu Ray v. UOI 1988(18) ECC51 According to the Supreme Court, the veil can be lifted to investigate which director was responsible for allowing deliberate concealment or suppression of crucial information, as well as fraudulent evasion of excise duty. 2. Invocation of the Principal of the Agency: The Corporate Veil may be lifted if required to identify the principal and agent involved in a wrongful activity carried out by the agency. In Smith Stone and Knight v. Birmingham Corporation 1939, The subsidiary working for the parent company’s benefit justified the parent company claiming on behalf of the subsidiary. Even though they recognized the subsidiary as having its own legal identity, the parent company was considered the principal using the agency principle, and the subsidiary was seen as acting on its behalf. 3. Against Public Policy: When a company’s actions go against public interest or policy, the courts have the power to lift the veil and directly hold the responsible parties accountable for their actions. In Jyoti Limited v. Kanwaljit Kaur Bhasin 1987 CRILJ1282, The Supreme Court applied this doctrine to examine the company’s involvement in a commercial transaction, discovering that the corporation was in contempt of court. Eventually, the members were held responsible. 4. Determining the Original Character of the Company: When the objective of setting up a business is simply to make gains, a company will not try to do good for society. It might, however, cause harm instead. In Workmen Employed in Associated Rubber Industries Ltd., v. The Associated Rubber Industries Ltd., Bhavnagar AIR 1986 SC 1, The Supreme Court affirmed that any steps taken by a company
Regulation of Ride-Hailing Services and Taxi Aggregators
The concept of ridesharing is not new; it emerged during World War II. During World War II, there was a huge disruption in transportation. In 1942, when there were no alternative means of transportation, the American government required ridesharing arrangements in workplaces to conserve rubber during the war (Chan and Shaheen, 2012). The 1970s triggered ride-sharing in what would be a second era after taxis from World War II. The for-hire passenger transport function is critical to metropolitan areas, but the regulatory frameworks are fundamentally flawed. Commercial Transport Apps (CTAs) challenge traditional rules by containing characteristics that blur the boundaries between regulatory categories and possibly render them irrelevant as they do not tend to fit within existing frameworks. For the past seven years, ride-hailing services have emerged in India, for example, Ola, Rapido, Uber, etc., which are user-friendly, so many working persons are using these services in their day-to-day lives and for leisure as well. Legal Frameworks for Ride-Hailing Services The Motor Vehicles Act, 1988,[1] is the regulation that regulates transport. The Ministry of Road Transport and Highways has also issued an advisory and compliance, which are applicable to transportation aggregators using information technology. They must be a registered entity in India, and they can be a digital intermediary. They should not own or lease any vehicle, employ any drivers, or represent themselves as ride-hailing services or taxi services without proper registration. Private information, car safety, price control, and driving force identity are the main regions of management. Labour laws remain complex, particularly in the phases of protection rights and driver classification. Both the car and its passengers should observe the insurance conditions. Environmental concerns have also brought about rules setting electricity performance requirements and promoting electric motors. The government constantly regulates these frameworks to strike a balance between innovation, passenger safety, and driving force protection. A Global Perspective on Competition and Market Dynamics: The manner in which ride-hailing commercial enterprises have disrupted urban mobility has brought about prison and regulatory problems all over the world. Legislators’s struggle to adjust present-day transportation policies to permit app-based platforms and preserve honest competition with mounted taxi services. State-of-the-art felony frameworks regularly classify experience-hailing services as “aggregators” or “transportation network agencies[2],” subjecting them to specific laws. These should consist of background exams on drivers, license requirements, and automobile protection requirements. A developing variety of antitrust laws are being tested to stop monopolistic practices in this rapidly merging economy. Courts aredebating whether or not to categorise drivers as unbiased contractors or employees, which puts labour policies under scrutiny once more. which will address privacy worries approximately person statistics obtained through these structures, statistics safety regulation is likewise changing. Lawmakers and courts need to strike a balance between promoting technological advancement and protecting client rights, motive force welfare, and marketplace integrity. Consumer Protection Methods The protection of consumers within the ride-hailing sector has drawn the attention of global regulatory frameworks. Transparent pricing, along with the explicit disclosure of surge pricing algorithms and fare splits, is regularly mandated by regulation. Several jurisdictions across the globe mandate that ride-hailing offerings put in place strong grievance coping mechanisms and offer convenient customer support. Legally mandated safety precautions normally encompass required insurance, historical past tests on drivers, and vehicle inspections. The intention of statistics safety rules is to secure users’ tour facts and personal records. Certain regions have implemented legal guidelines mandating that agencies offer journey data to nearby authorities for monitoring purposes. The Aggregator’s rules on client rights often tackle issues about service requirements, cancellations, and refunds. AUTHOR: Thirisha S, 4th-year student of B.A., LL.B. (Hons.) from School Of Excellence in Law.
Overview of the National Food Security Act, 2013
The Indian Constitution does not provide any explicit provision regarding the right to food, but it is enshrined in the fundamental right Article 21 i.e., the right to life and personal liberty, which may be interpreted as the right to live with human dignity, which includes the right to food and other basic necessities. Hence, it is the duty of the government to ensure that all the citizens of India are provided with the basic necessities of life. The issue of “food security” was being addressed long ago by the government under the Public Distribution System (PDS) and the Targeted Public Distribution System (TPDS). So, the Parliament enacted the National Food Security Act on July 5, 2013[1] emphasising the shift from welfare to a right-based approach. The act legally entitles up to 75% of the rural population and 50% of the urban population to receive subsidised foodgrains under TPDS. [2] This Act also focuses on the women empowerment and declares a mandatory rule that the eldest woman in the household, age 18 or older, should be the head of the household for the purpose of issuing a ration card under this Act. [3] Salient Features of the Act: There are many characteristics that were published in the National Food Security Portal. Few are, Composition of the Act This Act contains 13 chapters, 45 chapters, and 4 schedules. The Act deals with food security, food security allowance, identification of eligible households, reforms in targeted public distribution systems, women empowerment, grievance redressal mechanisms, obligations of state government and local authorities for food security, transparency, and accountability, and for advancing food security. Objective This act concentrates on the two goals of sustainable development set by the “United Nations General Assembly.” It seeks sustainable solutions to end hunger in all its forms by 2030 and to achieve food security. The aim is to provide good-quality food to everyone throughout India to lead a healthy lifestyle. CHALLENGE TO FOOD SECURITY:[6]The fight against food security has many obstacles, some of which are as follows:a) Climate change: farming becomes more challenging due to rising global temperatures and unpredictable rainfall. Temperature variations affect not just crops but also other food-producing animals, like fisheries and livestock.b) Lack of Access: Access to isolated places is limited. Due to a lack of access, indigenous people and other populations who live in rural areas, especially tribal people, are unable to take advantage of the food security schemes implemented by the government.c) Overpopulation: A significant rise in population that is not matched by higher agricultural output leads to food scarcity. AUTHOR: Thirisha S, 4th-year student of B.A., LL.B. (Hons.) from School Of Excellence in Law.
PoEM: Place of Effective Management
Why was the PoEM introduced? As of right now, if a foreign company’s[1] operations and affairs are fully controlled and managed within India, it is recognised as an Indian resident. To regulate the tax of these companies incorporated outside India but controlled from India, the Finance Bill of 2015 introduced the “Place of Effective Management” (PoEM) concept to determine foreign companies’ residential status. This resulted in an amendment to the Income Tax Act, 1961; the word “control and management” was replaced with “PoEM” in Section 6 of the act as follows: Section 6(3) of the Income Tax Act, 1961,[2] before the Finance Bill 2015 stated as follows: A company is said to be resident in India in any previous year if it is an Indian company or, during that year, the control and management of its affairs are situated wholly in India. This provision clearly mentioned controlling and managing the company’s affairs in India. But, with respect to the amendment, the above situation has been changed by introducing the Place of Effective Management (PoEM). Section 6(3) of the Income Tax Act, 1961, is amended as per the Finance Act, 2015[3] as follows: “A company is said to be a resident in India in any previous year if: The definition of the PoEM was attached in the annexure of this act as “PoEM refers to a place where the key management and commercial decisions necessary for conducting an entity’s business are made in substance. It is an internationally recognized concept that the Organization for Economic Co-operation and Development (OECD) accepts.”[4] After the incorporation of PoEM, a foreign company is considered a resident of India if its control and management of affairs are situated wholly in India. These companies often maintained superficial control over their international operations to avoid paying taxes on overseas earnings, thereby paying taxes solely on Indian operations. PoEM was established to curb such practices and prevent profit erosion from India, ensuring that companies with significant management and critical administration in India are taxed accordingly. How to Determine the PoEM? In the case of Radha Rani Holdings (P) Ltd. v. DIT, [5] the Supreme Court found that an unwarranted implication of control and management was manifested. A company cannot beconsidered a resident of India for tax purposes merely because it has isolated instances of control outside India. However, the government criticised this criterion, arguing that it allows companies to evade taxes simply by holding a single board meeting outside the country. Only companies whose control was “wholly situated in India” were considered Indian residents, prompting the government to lower the threshold by introducing the POEM Test. The Ministry of Finance issued guidelines on PoEM to provide more clarity in this regard. The assessment is based on several factors: These factors were further assessed based on guiding principles such as the location of regular board meetings, the delegation of executive committees, the head offices, the types of decisions made, and the people making them.[6] CONCLUSION: The PoEM is essential for establishing a company’s tax residency. If a company is deemed a tax resident in a specific jurisdiction, it might be liable for taxes on its global income in that location. Therefore, identifying PoEM aids in preventing tax evasion and guarantees that companies pay taxes in the regions where they conduct significant economic activities. AUTHOR: Thirisha S, 4th-year student of B.A., LL.B. (Hons.) from School Of Excellence in Law.
RULES RELATING TO NGOs REGISTERED UNDER TRUST, SOCIETY AND SECTION 8 OF THE COMPANIES ACT, 2023
NGOs are abbreviated as non-governmental organisations. Any organization functioning for the welfare of social, cultural, economic, educational, or religious purposes is known as an NGO. It can be initiated in various forms.[1] These organisations are not part of the government; they have legal status and are registered under the above-specified act. CONSTITUTIONAL PROVISIONS RELATING TO THE NGOs: REGISTRATION FOR RECEIVING FUNDS FROM THE FOREIGN SOURCES: Laws relating to NGOs are governed by FCRA,2010 and FEMA ,1999[3]. It has made it mandatory for all NGOs to seek prior approval or permanent registration under these Acts to receive funds from foreign sources. WHO CAN ACCEPT AND WHO ARE DEBARRED FROM THE FOREIGN CONTRIBUTION: Any NGOs working for the welfare of the public based on social, cultural, economic, religious, or educational programs can get funds from foreign sources only if they are registered with the Home Ministry and maintain a separate bank account that should list the donations received from foreigners, get audited by the Chartered Accountant (CA), and submit it to the Home Ministry. Judges, political parties, and candidates contesting the election, registered newspaper publishers, editors, cartoonists, government employees, or servants of the corporation are barred from receiving funds from foreign sources.[4] WHAT ARE THE REGULATIONS UNDER FEMA,1999: The Foreign Exchange Management Act (1999) consolidates and amends laws on foreign exchange to facilitate trade and maintain an orderly market in India. Transactions under FEMA are fees or salaries, while under FCRA, they are grants or contributions. In 2016, NGO monitoring powers shifted to FEMA for unified regulation. Therefore, the FEMA can monitor and regulate the NGOs to facilitate foreign contributions for public purposes. LEGISLATIONS UNDER INDIAN LAWS In India, NGOs can register under various laws, each with distinct regulations and requirements: We can register the NGOs under the above-mentioned acts.[5] REQUIREMENTS FOR REGISTRATION OF NGOs: PROCESS OF NGO REGISTRATION: PROCESS TRUST SOCIETY SECTION 8 Step 1 Application for name approval Application for name approval Application for a Digital Signature Certificate (DSC) Step 2 Drafting and filing of bylaws Drafting of a Memorandum of the Society Application for name availability Step 3 Approval of Trust Deed Filing of Memorandum Application for Section 8 License Step 4 Approval of trust registration from the registrar of companies Approval of the rules and regulations of the Memorandum Filling out the SPICe Form [6] Step 5 Issuance of the registration certificate and application for PAN and TAN Issuance of the registration certificate and memorandum Filling of e-MoA[7] and e-AoA[8] Step 6 – – Issuance of registration certificates and applications for PAN and TAN After the incorporation of the NGOs, they will get the following documents: If it is registered under Section 8 of the Companies Act, 2013 If it is registered as a trust, AUTHOR: Thirisha S, 4th-year student of B.A., LL.B. (Hons.) from School Of Excellence in Law.
WHY SHOULD WE PROTECT THE TRADITIONAL KNOWLEDGE OF INDIGENOUS PEOPLE?
Genetic resource commercialisation is a flourishing industry. “Biopiracy is defined as acquiring unauthorised access to biological material and using it for commercial goals, as well as obtaining exclusive rights over the indigenous people and gaining monopoly rights over the biological material.” [1] The indigenous people of the world possess vast traditional knowledge. How can we protect this traditional knowledge? There is a Traditional Knowledge Digital Library (TKDL), which contains a bundle of information about Indian medicine and its usage in India. The first country to start the TKDL project is India, which was initiated in 2001 in collaboration with CSIR, the Ministry of Science and Technology, the Department of Ayurveda, Yoga, and Naturopathy, Unani, Siddha, and Homoeopathy (AYUSH), and the Ministry of Health and Family Welfare of India. It converted and structured the ancient texts into 34 million A4-sized pages along the lines of a patent application and translated them into French, German, Japanese, and Spanish.[2] The TKDL database is currently being used by 16 patent offices across the world, which includes the examination of patent applications. We can access the information through the TKDL website[3]. LANDMARK JUDGEMENTS ON BIOPIRACY: The following are the landmark judgements on biopiracy relating to other countries that have patented Indian traditional knowledge without the recognition of the Indigenous people.[4] Turmeric Case (Curcuma Longa Linn)[5] In the Indian kitchen, the rhizomes of turmeric are used as a spice for flavouring the food. The quality of turmeric is also used in the manufacture of medicines, dyes, and cosmetics. As in the case of medicine, it is traditionally used to treat burns and cure wounds and rashes. A US patent was given on using turmeric to heal the wounds of two expatriate Indians at the University of Mississippi Medical Centre in 1995. The CSIR[6] challenged the US patent on the grounds of existing prior art, i.e., traditional knowledge, and filed a case to re-examine it. The CSIR claimed that turmeric has been used for thousands of years to heal wounds and rashes, therefore stating that its medicinal use was not a novel invention. Their claim was supported by documentary evidence from the Sanskrit text and a paper published in a journal called IMA (Indian Medical Association) in 1953. The US PTO maintained the CSIR objections and revoked the patent despite an appeal by the patent holders. Since it was the first time a patent based on traditional knowledge from a poor nation was successfully challenged, the Turmeric case was a landmark judgement. This patent waswithdrawn by the US Patent Office in 1997 when it was determined that the discoveries made by the innovators were not unique and had been known for centuries in India. Neem Case (Azadirachta indica A. Juss)[7] The Neem case involved a legal dispute where India challenged a 1994 European patent granted to W.R. Grace Company for Neem’s fungicidal properties, arguing it misappropriated traditional knowledge. In 2000, the European Patent Office revoked the patent, acknowledging Neem’s well-known medicinal uses in India. Basmati Rice Case (Oryza sativa Linn.)[8] The Basmati rice case involved India contesting RiceTec’s 1997 US patent claim on Basmati rice cultivation. India argued that this was the biopiracy of indigenous knowledge. The USPTO initially granted a partial patent but revoked it in 2001, acknowledging Basmati’s Indian origins and misleading use by RiceTec, marking a win for India’s traditional knowledge. Kava case (Piper methysticum Forster)[9] Kava, a significant Pacific cash crop valued for its ceremonial beverage, is cultivated in over 100 varieties. L’Oreal patented its use for hair loss reduction and hair growth stimulation. PROTECTION OF BIOLOGICAL RESOURCES UNDER THE STATUES In India, biological resources are protected, and the concept of biopiracy is prevented by the following acts: AUTHOR: Thirisha S, 4th-year student of B.A., LL.B. (Hons.) from School Of Excellence in Law.
LAWS AGAINST OVERTIME IN INDIA
In India, we often see lights in the office burning late into the night and the factories making noise past the set standard hours. For people with jobs in India, overtime is not a choice; it is an expectation of the boss. It is normalised to a point when any of your colleagues question excessive overtime, you seem to be surprised. Yet, only a few are compensated fairly for all the extra work put in. Indian law has set clear-cut boundaries on how overtime works and how employees should be compensated for the extra hours. Understanding the legal protections against unfair overtime practices is necessary for all workers to safeguard themselves from exploitation. Let us take a closer look at the legislation governing overtime in India and what would happen if the employer doesn’t comply with the laws. LAWS GOVERNING OVERTIME IN INDIA: WHAT SHOULD YOU KNOW? The Indian government has taken measures to protect workers in India from excessive overtime. There are prime legislations that regulate overtime in India, such as the Factories Act 1948, the Tamilnadu Shops and Establishment Act, 1947, the Minimum Wages Act, 1948, the Building and Other Construction Workers Act of 1996, The Code on Wages, 2019 etc., WHAT HAPPENS IF THE EMPLOYER DOESN’T COMPLY WITH OVERTIME LAWS? The Employer who doesn’t comply with the overtime laws will have to face huge fines and imprisonment. Under the Factories Act, 1948, non-compliance by the employer would lead to the payment of a fine up to Rs. 1,00,000 and imprisonment up to two years. If the violation is continuous, then there will be an additional daily fine of Rs. 1000 until the compliance is done [6]. Under the Tamilnadu Shops and Establishment Act, 1947, Section 45 states that anyone contravening with the overtime regulations mentioned under the act “shall be punishable for a first offence, with fine which may extend to five thousand rupees and for a second or subsequent offence, with fine which may extend to ten thousand rupees” [7]. Overtime work should not be forced upon workers; it should be done voluntarily by them. Regarding the private sector, HR policies and employment agreements should contain clauses about overtime and specified payment for it. The HR policy must comply with the laws prescribed by the Indian Government. They must also be in compliance with the state laws where the company is located. If there are no proper overtime policies in the company, it will lead to unwanted disputes. CONCLUSION: The problem here is not the laws; the actual enforcement remains an issue. A significant number of workers, especially in the informal sector, are unaware of the rights that are guaranteed to them. In many companies, “clocking out on time” is viewed as a lack of dedication. Furthermore, there is a constant rise in unemployment, and people waiting in the queue to replace one another creates fear among workers about asserting their rights. Creating awareness of labour rights, stringent penalties for non-compliance, and a cultural shift toward valuing productivity over long hours could lead to a healthier workforce and a more sustainable work culture in India. So, next time you’re asked to stay late, remember: the law is on your side. AUTHOR: Saraswathy Thogainathan, 5th year BBA. LL.B (Hons.), Saveetha School of Law, Chennai