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Labour Law Compliance 

  • Follow all applicable Central and State Labour Laws

  • Ensure registration and compliance from Day 1

Labour Licenses

  • Mandatory for certain categories of work (e.g., contract labor)

  • Apply under The Contract Labour (Regulation & Abolition) Act, 1970

  • Register establishment & obtain license for contractors

Provident Fund (PF)

  • Applicable when employee count exceeds 20

  • Registration under EPF Act, 1952

  • Employer & employee each contribute 12% of wages

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Employee State Insurance (ESI)

  • Applicable when employee count exceeds 10

  • Wages limit for eligibility: up to ₹21,000/month

  • Contributions: Employer - 3.25%, Employee - 0.75%

Professional Tax (PT)

  • Deducted based on salary slabs:

  • ₹15,000 to ₹19,999: ₹150/month

  • ₹20,000 and above: ₹200/month

  • Monthly remittance and filing required

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Employee Welfare Fund

  • Contribution: ₹7 per employee per year

  • Paid annually to the Telangana Labour Welfare Board

Registers to Maintain

  • Attendance Register

  • Overtime (OT) Register

  • Leave Register

  • Ensure digital or manual records are up-to-date

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Bonus

  • Applicable under Payment of Bonus Act, 1965

  • Minimum 8.33% of wages, maximum 20%

  • Applicable to employees earning up to ₹21,000/month

Gratuity

  • Applicable after 5 years of continuous service

  • Minimum 5 employees

  • Gratuity = 15 days' wages for every year of service

  • Suggest setting up a Gratuity Fund

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Summary & Compliance Checklist

  • Labour License

  • PF & ESI

  • Professional Tax

  • Welfare Fund

  • Registers & Recordkeeping

  • Bonus & Gratuity

  • Regular Audits & Updates

Shops and Establishments Act 

  • Mandatory registration for all commercial establishments

  • Regulates working hours, weekly off, holidays, and working conditions

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Minimum Wages Act, 1948

  • Employers must pay minimum wages set by the state government

  • Varies by skill level and industry; revised periodically

Payment of Wages Act, 1936

  • Timely payment of wages (before 7th or 10th of each month)

  • No unauthorized deductions; salary slip must be provided

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Maternity Benefit Act, 1961

  • Applicable to establishments with 10 or more employees

  • Provides 26 weeks of paid maternity leave

  • Mandatory crèche facility if employing 50+ women

Sexual Harassment of Women at Workplace Act, 2013

  • Applicable if 10 or more employees

  • Form an Internal Complaints Committee (ICC)

  • Conduct periodic awareness programs

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Equal Remuneration Act, 1976

  • No gender discrimination in wages for similar work

  • Equal opportunity in recruitment and promotion

Factories Act, 1948

  • Applicable to manufacturing units with 10+ workers using power or 20+ without power

  • Covers health, safety, and welfare measures

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Contract Labour (Regulation & Abolition) Act, 1970

  • Applicable if engaging 20 or more contract workers

  • Requires registration of establishment and contractor licensing

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