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Labour Law Applicability Checker for Indian Startups

Know exactly which labour laws apply to your startup — EPF, ESI, Gratuity, POSH, Bonus Act — based on your headcount and sector.

Your startup profile
6laws apply at 10 employees
Applicable now
Minimum Wages Act
Minimum Wages Act, 1948

Pay state-notified minimum wages for each skill category. Rates vary by state and occupation. Non-compliance attracts penalties and imprisonment.

Equal Remuneration Act
Equal Remuneration Act, 1976

Pay equal wages to men and women for the same or similar work. No gender-based discrimination in recruitment or conditions of service.

Shops & Establishments Act
State-specific Shops & Establishments Act

Register with the state labour department. Governs working hours, weekly holidays, leave entitlements, and employment conditions for shops and offices.

Payment of Gratuity Act
Payment of Gratuity Act, 1972

Gratuity is payable when an employee completes 5 years of continuous service: 15 days' last drawn salary × years of service. The liability accrues from day one of their tenure.

Maternity Benefits Act
Maternity Benefits Act, 1961

Grant 26 weeks of fully paid maternity leave (first two children). Establishments with 50+ women employees must also provide a crèche facility within a prescribed distance.

POSH Act — ICC mandatory
Sexual Harassment of Women at Workplace Act, 2013

Constitute an Internal Complaints Committee (ICC) with an external member. Conduct annual awareness programs. Submit annual report to the District Officer. Non-constitution attracts ₹50,000 fine.

Not yet applicable — thresholds to watch
Factories Act
10+ workers with power / 20+ without power (manufacturing only)
Employees' State Insurance (ESI)
10+ employees (factory) / 20+ employees (services)
Employees' Provident Fund (EPF)
20+ employees — applies permanently once crossed
Payment of Bonus Act
20+ employees
Contract Labour Act
20+ contract workers engaged
Industrial Disputes Act — Works Committee
100+ workmen

Indicative only. Thresholds and rates are subject to state-specific variations and legislative updates. Consult a labour law practitioner for your specific situation.

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Frequently asked questions

When does EPF become mandatory for a startup in India?

EPF (Employees' Provident Fund) becomes mandatory once your startup crosses 20 employees. Both employer and employee contribute 12% of basic wages. Once applicable, it stays even if headcount later drops below 20.

Is POSH applicable to startups with fewer than 10 employees?

The POSH Act requires forming an Internal Complaints Committee (ICC) only when you have 10 or more employees. Startups with fewer than 10 employees must still maintain a safe workplace but are not required to constitute a formal ICC.

When does ESI apply to a startup?

ESI (Employees' State Insurance) applies when you have 10 or more employees in a factory, or 20 or more in shops and establishments. It covers employees earning up to ₹21,000 per month. Employer contributes 3.25% and employee 0.75%.

Do DPIIT-recognised startups get any labour law exemptions?

DPIIT-recognised startups can self-certify compliance with 6 labour laws for up to 5 years from incorporation — EPF, ESI, Contract Labour Act, Factories Act, Building & Other Construction Workers Act, and Inter-State Migrant Workmen Act. This removes the risk of government inspections under these laws unless a complaint is received.

Is the Gratuity Act applicable to startups?

Yes. The Payment of Gratuity Act applies once your establishment has 10 or more employees. Gratuity is payable after an employee completes 5 years of continuous service: 15 days' last drawn salary per year of service.

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