There are certain labor laws which you need to follow for a startup company.
Manufacturing and Shop Act Licenses
1. If it is a manufacturing company, you need to apply for a factory license in the prescribed format along with the necessary documents. If it is not a manufacturing activity, then a shop act license is applicable.
Wage Parity and Minimum Wages Act
2. Thereafter, you have to survey the surrounding companies with similar turnover and activity to bring parity in wages so that you don't pay less or more on that account.
3. In this regard, you need to follow the Minimum Wages Act as per the schedule applicable to your activity. You have to add the special allowance declared by the Government of Maharashtra every six months.
House Rent Allowance (HRA) Requirements
4. In case you engage more than 50 workmen, you are liable to pay the minimum House Rent Allowance (HRA) as per the Maharashtra Minimum HRA Act, which is 5% of basic plus DA.
Gratuity and Contract Labor Regulations
5. You have to give the notice of opening under the Payment of Gratuity Act to the concerned authority.
6. In case you plan to engage contract labor for allied activity, then registration under the Contract Labor Act is required if they exceed 20 in number.
ESI, PF, and Other Labor Laws
7. If ESI and PF are applicable, then you have to apply for a code number.
These are the initial formalities. Other labor laws to be followed include the Maharashtra Labor Welfare Fund, etc.
Regards,