Learn about Business Laws & Policies

The legal responsibilities of an employer are given below. Please check if they are applicable to you :

1. Employee's Provident Fund: The Employees’ Provident Fund and Miscellaneous Provisions Act 1952 applies to the Factories engaged in Industries specified in Schedule I of the Act or to other establishments notified and engaging 20 or more employees. Register online.

2. State Insurance (ESI) Scheme : Employees' State Insurance Scheme of India is an integrated social security scheme tailored to provide social protection to workers and their dependants. The ESI Act, (1948) applies to following categories of factories and establishments in the implemented areas, and so you may apply online for ESIC registration if you are running :

Non-seasonal factories using power and employing ten(10) or more persons

Non-seasonal and non power using factories and establishments employing twenty (20) or more persons.

3. Tamil Nadu Shop and Establishment Act :regulates the employment of workers in shops and commercial establishments. The Act provides for the opening and closing hours of shops and establishments, and provision of weekly holiday with wages. There is no registration.. However, the company must declare the number of employees and their particulars on Forms 1, 2, 5 and S and submit them to the Assistant Inspector of Labor for the designated region where the office is located. Upon verification, the Labor Office will give a copy of the form back to the entrepreneur, containing the list of holidays that is granted to the employees. A copy of the form is to be displayed at the premises of the company. Apart from submitting this information, the company is required to ensure compliance of the (following):

a. The company must display a weekly holiday notice on its premises;

b. Apart from declaring the three national holidays, the company must also declare five festival holidays. Particulars of the five festival holidays are to be submitted to the Assistant Inspector of Labor;

c. The company must maintain various registers such as the Attendance Register, Leave Register, and Service Register. The Company must submit annual returns to the Inspector of Labor.

4. Factories Act : is an Act to ensure safety and health of workers and is applicable to all premises wherein a manufacturing process as defined under Section 2 (k) of the Act is carried on, employing 10 or more persons. Application for permission to construct, extend or take into the use any building as a factory before the operation of the factory if you need to employ more than 20 workers to the Local Inspector of Factories (Industrial Safety and Health)

5. Minimum Wages Act: mandates that every employer shall pay its employees wages above the minimum wages notified by the Collector in respect of certain categories of workers.