The Prime Minister’s Office (PMO) has directed the Ministry of Labour and Employment (MoLE) to ensure that all states have an established system for the start-ups that will allow self-certification for at least six labour laws and that too for a period of five years – the effort is to boost the start-up drive in India. In fact, MoLE advisory in 2016 had suggested the same, but restricted the period to 3 years. The labour laws mentioned 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.
Ministry of Labour had told states not to inspect start-up companies during the first three years of their life. Instead, the companies were advised to submit a declaration online annually for the period. Now the time will be extended from three years to five years in the coming years. Some states that have implemented the advisory are Chhattisgarh, Jharkhand, Madhya Pradesh, Rajasthan and Uttarakhand, Indian Express reported. This was done as some states have opposed self-certification for start-ups under these laws. The ‘Shram Suvidha’ portal has been integrated with Startup India portal for the purpose of self-certification with regard to these six labour laws.
The ministry also told states not to intervene in their functioning until any serious and credible complaint of violation is made against them in writing and the approval of the complaint has been obtained from one level senior to the inspecting officer.