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Released Date: 16th May, 2017

Central

Compliance Regime For Start-Ups

As per EPFO Circular dated 16 May 2017, the EPFO has cited letter received from Ministry of Labour and Employment dated 6th April 2017, the letter has stated that the Ministry had earlier directed Central Labour Enforcement Agencies to allow Start-Up to self-certify compliance under nine labour laws mentioned for a period of three years, the Ministry has now extended this self-certify compliance regime to five years. The State/UT Governments/Central Labour Enforcement Agencies are advised that for the first year of the Start-ups, such establishments may not be inspected under 6 labour laws (viz. The Building and Other Constriction Workers Act, The Inter State Migrant Workers Act, The Payment of Gratuity Act, The Contract Labour Act, The Employees Provident Funds Act and The Employees State Insurance Act) whereas, they may submit online self-declaration instead. Further, Start-ups may be allowed to submit self-certified returns for all nine labour laws mentioned (as is being done under Shram Suvidha portal for Central Sphere). Inspection may be allowed only after second year, post credible complaint of violation has been filed and approval is obtained from at least one level senior inspecting officer or from the Central Analysis and Intelligence Unit (CAIU)

Effective Date: 6th Apr, 2017

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