Navigating Legal Requirements for Software Firms: Can You Help Clarify These Compliance Issues?

Mandatory Legal Compliances for Running a Software Firm

I need clarity on the following laws:

- Minimum Wages Act
- Payroll Structure
- Bonus Act
- Offer Letter / Appointment Letter / Appraisal Letter / Relieving Letter / Experience Letter
- Labor Law
- EPF
- How to register for paying Professional Tax
- How to calculate TDS for employees and how to pay
- What is the Leave Policy
- Is ESI or Insurance mandatory?
- What if I have arrears to pay for all the above

Please send me a detailed description of all the above points. I appreciate your support in advance.

Mandatory Legal Compliance for Running a Software Firm

Minimum Wages Act
As per the Minimum Wages Act of Karnataka.

Payroll Structure
Find the attached sheet where you can calculate TDS also.

Labor Law
Apply for EPF registration and ESIC registration.

EPF
Applicable for all employees.

How to Register for Paying Professional Tax
Apply online at the Sales Tax department.

How to Calculate TDS for Employees and How to Pay
Refer to the attached sheet. Before that, you need to apply for a Tax Deduction Account Number.

What is the Leave Policy
Leave policy can be drafted; some leaves are mandatory like 26th Jan, 1st May (Labour Day), 15th Aug, etc.

Is ESI or Insurance Mandatory?
ESIC is mandatory for those with a salary of 15,000/- or below.

What if I Have Arrears to Pay for All the Above
Arrears can be paid, but I would suggest paying them like an incentive.

First, I thank you for your valuable response. I am still having doubts about whether ESI is mandatory for a software firm. Also, what if the employee's salary is more than 15,000? Is nothing mandatory? Can we opt for private insurance rather than ESI?

Thanks,
Shiva

Thanks for the post, Somani. I am still waiting for the response to the other question: Is it mandatory to provide insurance/ESI even for IT firm employees?

Thanks,
Shiva