17th June, 2019
Startup India Related News

Startups to self-certifiy six labour laws for 5 initial years

In an attempt to boost the startup drive in India, the Prime Minister’s Office (PMO) has instructed the Ministry of Labour and Employment (MoLE) to ensure that all the states in the country have a system in place under which startups are allowed self-certification with regard to six labour laws, for a period of five years. The MoLE advisory had already suggested the same last year in January but restricted the period to 3 years. The six labour laws which PMO has called for self-certification are- The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996; The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979; The Contract Labour (Regulation and Abolition) Act, 1970; The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952; The Employees’ State Insurance Act, 1948; The Payment of Gratuity Act, 1972.

Startups to furnish self-certification for labour laws

The MoLE, in its January 2016 advisory, had suggested the states not to inspect the startups during the initial three years of their incorporation under the same six labour laws. The startups were advised instead to submit a self-declaration online for the period. Now, after the PMO`s instruction, the period will be extended by another two years. Moreover, the MoLE also advised the states not to interfere in the working of the startups until any serious and credible complaint is filed in writing against them and the approval for inspection has been sought from a senior level officer.

12 states implementing MoLE advisory

Currently, about 12 states, including Chhattisgarh, Jharkhand, Madhya Pradesh, Rajasthan and Uttarakhand have implemented this advisory. However, some states like Tamil Nadu have opposed self-certification for startups under certain labor laws. The ‘Shram Suvidha’ portal has been integrated with the Startup India website to facilitate self-certification for the abovementioned labour laws. [irp]