New Factory in Karnataka: Is There a Grace Period for Labor Law Compliance?

Can someone help me provide information on any grace period allowed to a new establishment for compliance with various labor laws in Karnataka?

Regards,
Ashish

Sir,

No grace period is available in any labor law for a new establishment. Compliance with the applicable laws is required from the start.

P.K. Sharma

For example, can I start PF & ESI after 2 months and give it to all the workers from the start date?

A lot of workers come and go at the initial stages, and maintaining records for such workers is a cumbersome activity.

I also want to know for a cottage industry, is it mandatory to register under the Factories Act? My understanding from DIC is that only 'Udhyog Aadhaar Registration' is required as per current guidelines.

In continuation of the earlier submissions, please note that if you are employing the minimum number of employees required for coverage, you are legally bound to ensure compliance from that particular date. Delay in compliance attracts the imposition of penalties and interest, among other consequences. Even if a person works for just a single day and you are going to pay wages/salary, you are required to maintain all prescribed records without any excuses for the initial stage or any cumbersome activities.

Obtaining Udyog Aadhar

Obtaining Udyog Aadhar is another essential process that you have to complete online from the MSME site. This document is considered akin to a birth certificate for any industry and will be requested by various authorities periodically.

Regards, P.K. Sharma