Are IT Companies in Madhya Pradesh Required to Follow All Labor Laws After 3 Years?

Hi,

I would like to know, is it mandatory for a private limited company in Madhya Pradesh, which has completed 3 years of service, to follow all labor laws? The company is an IT-based company (subsidiary of a foreign company).

If it is mandatory, please provide a brief overview of all the laws and rules such as Gratuity, Bonus, Minimum Wages, etc.

Is there any senior person available to assist me with this?

Regards,
Sachin Sahu

Dear Sachin, whether labor laws or otherwise, whether Madhya Pradesh or any other state, you need to follow the laws. The government passes laws to avoid exploitation of the weak, to bring social justice and order, and to narrow the rich and poor divide, etc. If you raise the query on the mandatoriness of the law itself, then it is better if you refer to textbooks of civics that were taught to you in your school days. When the query comes from a "subsidiary of a foreign company," it casts an unflattering light on the poor awareness of the laws.

To know the list of laws that your company is required to follow, you will have to hire a consultant. Yes, you may refer to this forum or search web resources, but then the information will be scattered, and picking them up and organizing it in a systematic manner may not be possible for a novice like you.

Thanks,

Dinesh Divekar

I would like to know, is it mandatory to follow all labor laws by a private limited company in Madhya Pradesh when the company has completed 3 years of service? It is an IT-based company (subsidiary of a foreign company). - Yes, it has to.

If it is mandatory, please brief on all the laws and rules such as Gratuity, Bonus, Minimum Wages, etc. - Please raise a specific query to support you better.

Is there any senior person available to help me with the same? - Mr. Dinesh Divekar has already tried to help you.

Hi Sachin, below is the answer to your query:

Mandatory compliance with labor laws for IT companies in Madhya Pradesh

I would like to know, is it mandatory for a private limited company in Madhya Pradesh, which has completed 3 years of service, to follow all labor laws? It is an IT-based company (subsidiary of a foreign company). - Yes.

Overview of applicable labor laws

If it is mandatory, please provide a brief overview of all laws and rules such as Gratuity, Bonus, Minimum Wages, etc. - Laws are applicable based on the number of employees, type of employees, and nature of work. Registrations, periodic returns, and monthly documents need to be maintained as per applicable labor laws.

Availability of senior assistance

Is there any senior person available to assist me with this? - Yes. Seniors will guide you.

Is it mandatory to follow all labor laws in Madhya Pradesh?

It seems a bit ludicrous to raise the query, "Is it mandatory for a private limited company in Madhya Pradesh to follow all labor laws?" Do you have any vague notion that you might be able to bypass the law, or are you entertaining the idea that anything is possible in Madhya Pradesh? Please have no such misgivings. Applicable laws must be followed, or else you will be penalized sooner or later.

To make a list of all applicable laws or their terms is a time-consuming task in itself and could be attempted by obtaining a condensed book on labor laws. For any further queries on the matter, you may avail yourself of the services of this forum.

Dear Colleague, generally speaking, all labor laws enacted by the Central and State Governments are applicable and mandatory based on whether your establishment is a factory or commercial. Further, each law specifies wage limits and the number of workmen employed for its applicability, and one must refer to each applicable law for that as well as definitions of 'Employee' and 'Workman' for coverage.

Please refer to each labor law and find out its applicability to your establishment in light of the above, as well as comments from some seniors. Also, study if the Central/State governments have granted any exemptions or relaxations from certain labor laws to IT/ITES start-up units by way of incentives.

Regards, Vinayak Nagarkar HR Consultant