Labour Ministry exempts start-ups from six more laws

Under the Startup India Action Plan, the Ministry of Labour and Employment may announce exemption from six Labour laws for one year to startups.

As per Zee Business source, six labour laws which may get exempted are: The building and other construction worker (Regulation of employment and condition of service) act 1996, The interstate migrant workman (Regulation of employment and condition of service) Act 1979, The payment of gratuity act 1972, The employees provident funds and other miscellaneous provision acts 1972, The contract labour (Regulation and abolition ) Act 1970, The employees state insurance act 1948.

To exempt these laws, the startups may require filing of an online declaration form. They will also require a recommendation letter from DIPP, said the source. 

Further, the Ministry of Labour is likely to write a letter to all the States notifying the new rule.

According to a PTI report, earlier in March, Labour Minister Bandaru Dattatreya had announced exemption from nine labour laws for a period of three years to promote and incentivise the entrepreneurial ecosystem in the country.

That time, as per the Labour ministry's statement, the nine labour laws which were exempted were--Industrial Disputes Act, 1947, Trade Unions Act, 1926, Building and Other Constructions Workers' (Regulation of Employment and Conditions of Service) Act, 1996 and Industrial Employment(Standing Orders) Act, 1946, Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979, Payment of Gratuity Act, 1972, Contract Labour (Regulation and Abolition) Act, 1970, Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and Employees' State Insurance Act, 1948.