By - King Stubb & Kasiva on January 24, 2023
Compliance norms are statutory mandated rules and regulations which a corporate is necessitated to follow. Labour law compliance in India must be done in accordance with the laws of the land. The Indian government has recently implemented measures to make compliance for start-ups easier in the country. One of these measures include allowing exemptions from certain labour laws for a period of up to 3 years for start-ups that meet a certain criterion. The intention is to help start-ups focus on growth and development, rather than being bogged down by compliance requirements.
However, it is important to note that start-ups will still be required to comply with the certain core labour laws, such as those related to minimum wages and safety in the workplace.
Labour Law compliance in India is subject to adherence of certain key laws. Mandatory compliance obligations in labour law for Indian tech start-ups include:
The Workmen's Compensation Act, 1923, the Equal Remuneration Act, 1976, the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 are other such important laws.
These laws cover a wide range of issues, including minimum wages, working hours, overtime pay, social security benefits, and safety in the workplace. Failure to comply with these laws may result in penalties, fines, and even criminal charges. Therefore, it is important for companies to be aware of their obligations and to take steps to ensure compliance with all the labour laws.
For compliance for start-ups in India, the government has provided exemptions from certain labour laws for a period of up to 3 years, provided that the start-ups meet certain criteria. The specific laws that are exempt for tech start-ups include:
It is important to note that these exemptions are only provided to start-ups that are registered with the government and that meet a certain criterion, such as being a new company that is less than 5 years old and having a turnover of less than INR 100 crore.
Labour law compliance in India for tech start-ups still needs to meet compliance obligations, even if they are eligible for certain exemptions. It is important for companies to be aware of their compliance obligations and to take steps to ensure legal compliance with all relevant labour laws.
Labour law compliance is an important aspect for tech start-ups in India as it helps to ensure that the employers are adhering to the legal obligations and providing a safe and healthy working environment for their employees.
It is important for start-ups to be aware of these legal requirements and to take necessary steps to ensure compliance with the law. The team at KSK provides expert legal advice to navigate the legal landscape and provides assistance in navigating through the compliance framework for startups in India.
A compliance checklist is important for start-ups as it helps them be aware of their legal obligations pertaining to the labour laws. It also helps them to stay organized, avoid penalties and fines, improve employee relations, avoid legal disputes, maintain a good reputation, efficiently track compliance, and identify areas of risk.
The legal requirements for a start-up in India can vary depending on the type of business and the industry in which it operates. However, some of the key legal requirements for start-ups in India include:
1. Company registration
2. Intellectual Property (IP) protection.
3. Compliance with Labour laws.
5. Compliance with sector-specific regulations: Start-ups operating in certain sectors such as e-commerce, healthcare, and food and beverage may be subject to additional regulations and requirements.
6. Environmental and health & safety compliance
7. Data privacy and protection
Compliance with legal requirements is important for start-ups to avoid penalties and fines, protect the business, maintain good employee relations, maintain a good reputation, attract investors and customers, create a level playing field, and protect customer data.