In order to provide Indian startups a little something more to celebrate on Indian Independence Day, Prime Minister’s Office (PMO) has instructed the Ministry of Labour and Employment (MoLE) to make sure that all states in the country have a system in place that will allow startups self-certification for at least six labour laws for a period of five years.
With this, the PMO is hoping to boost its startup drive in the Indian subcontinent. While the PMO has pitched a five year window, the MoLE advisory had in fact suggested the same last year, but instead of five years it wanted to restrict the period to three years.
The six labour laws mentioned by PMO for self certification are: 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; 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 ‘Shram Suvidha’ portal has been combined with the Startup India portal for self-certification with regard to the aforementioned six labour laws.
Prior to this, the Ministry of Labour had instructed states not to inspect the startups for the initial three years of their life. Instead, the companies had to submit a declaration online annually for the three year period. Now, this period will get extended by another two years to five years.
According to a report in Indian Express, states like Chhattisgarh, Jharkhand, Madhya Pradesh, Rajasthan and Uttarakhand have already implemented the advisory. The step was taken as some Indian states weren't in favour for self-certification for startups under these laws.
The Labour ministry has also asked the state not to poke their noses in the working of the startups until and unless it is something very serious or a written complaint is made to them from someone senior to the inspecting officer.
With this, the PMO is hoping to boost its startup drive in the Indian subcontinent. While the PMO has pitched a five year window, the MoLE advisory had in fact suggested the same last year, but instead of five years it wanted to restrict the period to three years.
The six labour laws mentioned by PMO for self certification are: 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; 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 ‘Shram Suvidha’ portal has been combined with the Startup India portal for self-certification with regard to the aforementioned six labour laws.
Prior to this, the Ministry of Labour had instructed states not to inspect the startups for the initial three years of their life. Instead, the companies had to submit a declaration online annually for the three year period. Now, this period will get extended by another two years to five years.
According to a report in Indian Express, states like Chhattisgarh, Jharkhand, Madhya Pradesh, Rajasthan and Uttarakhand have already implemented the advisory. The step was taken as some Indian states weren't in favour for self-certification for startups under these laws.
The Labour ministry has also asked the state not to poke their noses in the working of the startups until and unless it is something very serious or a written complaint is made to them from someone senior to the inspecting officer.
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