Labour Laws let new startups breathe

To ensure startups are able to focus on their core business, the government of Maharashtra has announced a three year waiver from labour laws related exemptions for all startups in the state. The move is aimed to promote startup ecosystem by ensuring ease of doing business in accordance with the central government’s long term vision. With relaxation in labour law compliance for startups, the government hopes more startups will set base in the state.

The relaxation norms are applicable for all startups registered less than five years ago and having an annual turnover of less than Rs. 25 Crore. Government estimates the move is likely to benefit more than 98,000 startups across Maharashtra.

As per the relaxations on offer startups would get a complete waiver from labour law related inspections in the first year. Any inspections in the second and third year will be done only if any written complaint is received. Startups working with hazardous materials are however not exempted from such inspections.

Trade unions on their part have expressed unhappiness over such a move as they fear it may lead to a situation where labours are denied their rights. Startups should be asked to provide god working conditions, accident insurance and payment of a minimum wage suggest many trade unions across Maharashtra.