The State is an integral component of industrial relations. The four main tenets of the Government’s labour policy can be summed up as:

to exercise political control over the industrial movement without jeopardizing the legal rights of entrepreneurs or employees;

to maintain industrial peace;

to encourage and recognise trade unions and employers’ federations for collective bargaining; and

to ensure that individual rights should not be infringed.

(This is done through administrative and executive agencies. The employers are under obligation to Government for the peaceful observance of the above functions).

Employers are liable to pay taxes, contributions and assistance to various revenue authorities created by statute, such as income tax, central excise and sales tax under the central sales tax and state government sales tax laws. Employers must make timely deposits of contributions to the Provident Fund and the ESI authorities (under the law in force) and must file timely returns to respective authorities. Employers are automatically governed by the intention of the various legislation.