Start up ventures will now be able to avail self certified compliance regime for five years as far as labour laws are concerned.
For the first year, these establishments will not be inspected under six major labour laws.
The Central Government, in order to encourage startups has decided to promote ‘startup ecosystem’, meant to incentivize entrepreneurs.
Heeralal Samariya, Additional Secretary Ministry of Labour and Employment (MOLE), has written to the State Government accordingly.
Mr.Samariya said that startups will create more employment opportunities so they are needed to be incentivized and accordingly. Earlier it was decided that startups will be allowed to avail self certified compliance for three years.
However now looking at the growth of startups, the period has been extended to five years. While there will be no inspection in the first year, the startup entrepreneur will have to submit an online self declaration for official records.
The entrepreneurs will be allowed to submit self certified compliance under labour laws for five years.
Mr.Samariya said that the startups may be taken up for inspection from second year itself if credible and verifiable complaint of violation is filed in writing with the authorities.
The State government has been taking up startup issues with all earnestness and formulated a progressive startup policy, which is being implemented by the MSME department.
Principal Secretary MSME LN Gupta said steps are being taken to provide the startups ease in regulatory environment. Similarly, Department of Labour and ESI is also moving ahead in providing facilities for ease of doing business.
Principal Secretary Labour and ESI G Srinivas is also equally proactive in this regard, said sources.
Now with Ministry of Labour & Employment given clear indications for an ease in regulatory regime, both the departments are likely to proactive steps in this regard, said the official.