PMO extends self-certification of start-ups under 6 labour laws to 5 years

In a bid to boost the start-up ecosystem in India, the Prime Minister’s Office (PMO) has put-forth an extension in the period of self-certification for start-ups to 5 years, from the existing 3 years. In this regard, the PMO has also directed the Ministry of Labour and Employment to ensure proper placing of a system across all the states of India to comply with the new norms and enable the certification with regard to 6 Labour Laws.

Under an earlier directive by the Ministry of Labour and Employment in 2016, start-ups were permitted to submit an online declaration annually for 3 years. The Ministry had told states not to inspect start-up companies during the first 3 years of their life. This will now be extended by 2-years-period in coming years.

Chhattisgarh, Jharkhand, Madhya Pradesh, Rajasthan and Uttarakhand are a few states that already implemented the earlier advisory of the Ministry, while some others have had stayed by the opposition of self-certification under the laws.

Start-ups may self-certify compliance in respect of following 6 Labour Laws:

• The Building and Other Constructions Workers’ (Regulation of Employment & Conditions of Service) Act, 1996
• The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979
• The Payment of Gratuity Act, 1972
• The Contract Labour (Regulation and Abolition) Act, 1970
• The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
• The Employees’ State Insurance Act, 1948

In order to self-certify compliance, a start-up may log on to ‘Shram Suvidha Portal’.