Simplification and
Handholding
Compliance Regime based
on Self-Certification
Objective
To reduce the
regulatory burden on Startups thereby allowing them to focus on their core
business and keep compliance cost low
Details
Regulatory formalities
requiring compliance with various labour and environment laws are time
consuming and difficult in nature. Often, new and small firms are unaware of
nuances of the issues and can be subjected to intrusive action by regulatory
agencies. In order to make compliance for Startups friendly and flexible,
simplifications are required in the regulatory regime.
Accordingly, the
process of conducting inspections shall be made more meaningful and simple.
Startups shall be allowed to self-certify compliance (through the Startup
mobile app) with 9 labour and environment laws (refer below). In case of the
labour laws, no inspections will be conducted for a period of 3 years. Startups
may be inspected on receipt of credible and verifiable complaint of violation,
filed in writing and approved by at least one level senior to the inspecting
officer.
In case of environment
laws, Startups which fall under the ‘white category’ (as defined by the Central
Pollution Control Board (CPCB)) would be able to self-certify compliance and
only random checks would be carried out in such cases.
Labour Laws:
• The Building and
Other Constructions Workers’ (Regulation of Employment & Conditions of
Service) Act, 1996
• The Inter-State
Migrant Workmen (Regulation of Employment & Conditions of Service) Act,
1979
• The Payment of
Gratuity Act, 1972
• The Contract Labour
(Regulation and Abolition) Act, 1970
• The Employees’
Provident Funds and Miscellaneous Provisions Act, 1952
• The Employees’ State
Insurance Act, 1948
Environment Laws:
• The Water
(Prevention & Control of Pollution) Act, 1974
• The Water
(Prevention & Control of Pollution) Cess (Amendment) Act, 2003
• The Air (Prevention
& Control of Pollution) Act, 1981
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