Labour Law Compliances for Start-ups

Let’s understand labour law compliances for start-ups from a renowned corporate dispute lawyer in Gurgaon.

Starting a start-up is not easy. Entrepreneurs experience difficulty in arranging seed capital to make optimized use of factors of production. Although factors of production differ in each organization or start-up, labour is one constant factor that exists in most organizations.

In this blog, you will find significant legal information regarding labour law compliances.

Which Companies are Eligible for Startup Scheme?

It is necessary to understand which type of companies will fall under the start-up framework. The types of companies eligible for the startup framework are as below:

• Companies as a Pvt. Ltd or LLP and /or a registered firm.
• A company that has a turnover less than INR 100 Crore in any of the preceding financial years.
• Companies with 10 years from the date of incorporation.
• an entity that is working towards innovation, development or improvement of products or processes or services that has a scalable business model with a high employment generation potential or wealth creation will come under the framework of a start-up.

Indian Labour Laws for Startups

Although India has several labour laws, there are specific labour laws that startups need to follow.

Prevention of Sexual Harassment

Provisions of Sexual Harassment of Women at Workplace Act, 2013 applies to any organisation that employs more than 10 employees regardless of the industry and their location. The POSH Act protects women from harassment at the workplace and it applies to start-ups as well.

Minimum Wages

A start-up needs to provide a minimum wage to its workers. The Minimum Wages Act, 1948 makes it mandatory for organizations to pay wages as per the instructions of the state authorities to the workers within the 7th day of the following month.

Working Hours

Although a start-up focuses on higher productivity. But it can not force or indulge its labour to work extra time. If it does, the labour can bring it into the knowledge of authorities.

Safety and Health

Start-ups also abide by labour law and its statutory requirement of providing a safe and healthy work environment to its workers. If any organization does not follow this requirement, authorities can take action against them.

Against Discrimination

The Equal Remuneration Act, of 1976 expects start-up employers to pay its workers equally regardless of their caste, gender and creed.

It must be noted that the above laws are just a peek through the labour law compliances. If you are starting a start-up and want the least legal trouble, then it is always better to get familiar with all useful labour and corporate laws. This can save you from futuristic legal troubles and penalties. Still, if you find yourself in any corporate legal issue, you can contact a good dispute lawyer in Gurgaon.

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