Startup and Labour Laws in India

Startup and Labour Laws in India  

When you are established as a company, you are subject to several labour laws regardless of the size of the organization. Adhering to labour laws is integral to every organization, small or big.
Laws with regard to minimum wages, gratuity, PF payment, weekly holidays, maternity benefits, sexual harassment, and payment of bonuses among others will need to be complied with.
With regards to labour laws, startups registered under the Startup India initiative can complete a self-declaration (for nine labour laws) within one year from the date of incorporation in order and get an exemption from labour inspection. 

The nine labour laws applicable under this scheme are:

The Industrial Disputes Act, of 1947
The Trade Unit Act, of 1926
Building and Other Constructions Workers’ (Regulation of Employment and Conditions of Service) Act, 1996
The Industrial Employment (Standing Orders) Act, 1946
The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
The Payment of Gratuity Act, 1972
The Contract Labour (Regulation and Abolition) Act, 1970
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
The Employees’ State Insurance Act, 1948.

Startups under this scheme will have to file a self-certified return for the second and third years in order to continue with the exemption. Having a well-designed employee policy can be a major differentiator for startups. An attractive employee policy is a key to attracting and retaining good talent. Employee policies can also prove to be the starting point for boosting employee morale and increasing productivity.

                                                                                                                                                                                                   

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