Taking note from the sops announced in the Start-Up India Policy, which was recently launched by PM Modi, Labour Ministry has directed EPFO and ESIC to exempt start-ups from inspection and filing returns for 3 years.
The Ministry said that the new age ventures should be allowed to self-certify their compliance with 9 labour laws.
In a letter, Labour Secretary, Shankar Aggarwal said that the start-ups should neither be inspected nor asked to file returns for three years under 9 laws including Employees’ Provident Fund and Miscellaneous Provisions Act and the Employees State Insurance Act.
“Promoting start-ups would need special hand-holding and nurturing. Thus, such ventures may be allowed to self-certify compliance with the Labour Laws,” he added.
They will be exempted from inspection under the Building and other Construction Workers (Regulation of Employment and Conditions of Service) Act, Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, Payment of Gratuity Act and Contract Labour Act.
Start-ups will also be exempted from filing returns under the Industrial Disputes Act, Building and other Construction Workers Act, Inter-State Migrant Workmen Act, Contract Labour Act, EPF Act and ESI Act.
Aggarwal said that the start-ups will be inspected in case a “very credible and verifiable” complaint of violation is filed in writing and the approval has been obtained from the Central Analysis and Intelligence Unit (CAIU).