Navigating Compliance: Which Labor Laws Apply to Our Small Pvt. Ltd. Company?

Our company, a private limited company, has two directors and eight employees in Delhi, and one each in Pune, Bangalore, and Mumbai. We are relatively new and would like to understand which acts we will fall under, such as the Gratuity Act, Factory Act, ESI, etc. Please guide us accordingly.

Thank you.

Regards

Following are the acts applicable to you:

1. Shops and Establishment Act
2. Professional Tax
3. Minimum Wages Act
4. Gratuity Act

Regards,
Vikram Trivedi
Labour Law Consultant
[Phone Number Removed For Privacy Reasons]

Applicable Acts for Companies

The Industrial Disputes Act, Payment of Wages Act (subject to wages), Labour Laws Exemption Act, ESI, Maternity Benefit Act, and Employee Compensation Act, etc., also apply.

Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]

Thank you very much. Also, please clarify when we count the number of employees to come under any particular act, are the directors of the company also counted as employees?

Also, I would add that the directors are shareholders and take a monthly directors' remuneration in a private limited company. So, are they treated as employees, and are they eligible for benefits like gratuity, medical reimbursement, etc?

For organization registration, it is a must as applicable in the state. Registration depends upon the nature of the activity done by the organization.

Every organization needs PF, ESI, and professional tax registration numbers to run the establishment.

Other acts and fees prescribed by the state and central government are also applicable and must be observed by the organization.