Navigating HR Compliance for Start-Up Educational Institutes: What Are the Must-Know Requirements?

We are a start-up chain of educational institutes. Having started a year back, we now have 17 centers spread across Maharashtra and 67 employees. Can you please help me understand what statutory requirements we have to adhere to? We currently do not have any PF/Gratuity, etc., put in place. Your help is highly appreciated.

Thanks & Regards,
Ujjwal

I understand that your chain of institutions is not aided by the government but is purely self-financed private educational institutions. If so, each center should have separate registrations as per the State Shops and Commercial Establishments Act under the relevant Labour Offices. If you disburse salary centralized from one place, you can have a centralized PF registration. Your establishment will also be covered by the ESI Act for which the main office shall have to obtain registration, and the centers will have to take sub-codes based on this registration. Moreover, your establishment will be covered by all other Labor Acts like the Payment of Wages Act (which provides for payment of salaries within a specified time), Payment of Gratuity Act (provides for payment of gratuity to those who leave the organization after serving for 5 years), Maternity Benefit Act (provides for granting leave with salary for 12 weeks, etc., to women employees for delivery), Industrial Disputes Act (provides for the settlement of disputes), etc.

Steps to Begin Compliance

To start with, registration under the Shops Act, Employees' Provident Fund and Miscellaneous Provisions Act, and ESI Act are to be carried out. Besides, you have to obtain a license to run a business or profession from the Municipal Corporations/Panchayats following the Municipalities Act also.

Regards,
Madhu.T.K

Ours is a chain of preschools which is currently not regulated. Does the Shops and Establishment Act and other regulations apply to it currently?

I understand that your chain of institutions is not aided by the government but is purely self-financed private educational institutions. If so, each center should have separate registrations as per the State Shops and Commercial Establishments Act under the relevant Labour Offices. If you disburse salaries centralized from one place, you can have a centralized PF registration. Your establishment will also be covered by the ESI Act, for which the main office shall have to obtain registration and the centers will have to take sub-codes based on this registration. Moreover, your establishment will be covered by all other labor acts like the Payment of Wages Act (which provides for payment of salaries within a specified time), the Payment of Gratuity Act (provides for payment of gratuity to those who leave the organization after serving for 5 years), the Maternity Benefit Act (provides for granting leave with salary for 12 weeks, etc., to women employees for delivery), the Industrial Disputes Act (provides for the settlement of disputes), etc.

To start with registration under the Shops Act, the Employees Provident Fund and Miscellaneous Provisions Act, and the ESI Act are to be carried out. Besides, you have to obtain a license to run a business or profession from the Municipal Corporations/Panchayats following the Municipalities Act as well.

Regards,
Madhu.T.K

Preschools are not governed by the Maharashtra Private Schools Act, nor is there any other legislation governing them to my knowledge. However, there is one in the offing. Till such time, the Shops and Commercial Establishments Act will apply, as the definition of a commercial establishment is very wide and covers practically all ventures. Therefore, the hours of work of the employees, leaves, holidays, and salary, as well as Section 38-B of the Standing Orders Act, apply mutatis mutandis (as it is). The Payment of Wages Act, Employees' Compensation Act, and Maternity Benefit Act shall also be applicable.

Thank you.
Regards.