In India, law is about protecting the rights of its citizen and from this we can say, if we need to protect the rights of the employees, we need labour law. For different organizations there might be different labour laws to comply with, but one thing that remains common is its importance and the role played by it in an organization. Labour law is not only about maintaining files and registers and filing returns, there is much more to it. 

But the question pertains as to why is compliance important and why should a company comply to labour law. For any organization compliance is required for risk assessment and to reduce the likeliness of penalties arising out of negligence or ignorance towards duties bound by law on the organization. If the organization wants to avoid not only the monetary loss that occurs but also the social damage so caused to it like damage to goodwill, loss of clients, untuned relation of employer and employee, lack of trust in employees, low morale and a lot more, then the company must take compliance seriously. And for the same reason, labour law shall be complied by the organization. 

There are certain labour laws that are required to be complied with in an organization like the Minimum Wages Act, 1948 in terms of wages, Maternity Benefits Act, 1961, Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 in terms of social security, Industrial Disputes Act, 1947 in terms of maintaining the appropriateness of the work place and certain other laws for same or other concerns. One may raise the doubt as to how the employers or entities are held responsible to comply with the aforesaid laws and get benefited from this. The answer is quite simple to this, the labour i.e. human resource of the organization feels motivated to work when given fair wages along with a healthy working environment without any conflict of interests. Moreover, the upgraded step towards safeguarding the social security of the employees ultimately leads the employee to work with utter dedication. This way both the sides are benefitted.