EXTRAORDINARY
PUBLISHED BY AUTHORITY
No. 470 , CUTTACK, TUESD AY, MARCH 27, 2018 / CHAITRA 6 , 1940
LABOUR & E.S.I. DEPARTMENT
NOTIFICATION
The 26th March, 2018
S.R.O. No.108/2018— Whereas, as per the Startup Odisha Policy, 2016, an entity shall be considered as a "Startup", provided that:
(a) The date of its incorporation /registration is not prior to 7 years. In case of Biotechnology Startups, incorporation /registration should not be prior to 10 years;
(b) Annual turnover not exceeding Rs. 25 Crore, for any preceding financial year;
(c) Such entity is working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property and makes it scalable for achieving commercial success ;
(d) Registered in Odisha or employs at least 50 per cent of its total qualified workforce in Odisha;
(e) Such entity is not an extension of existing family business; or formed by splitting up or reconstruction of a business already in existence.
2. Whereas Department of MSME, Government of Odisha has highlighted the need for provisions, by State Government for self-certification for Startups under the following Acts:—
i. The Building and Other Construction Workers (Regulation of
Employment and condition of service) Act, 1996
ii. The Inter-state Migrant Workmen (Regulation of Employment and Condition of service) Act, 1979.
iii. The Payment of Gratuity Act, 1972.
iv. The Contract Labour (Regulation and Abolition) Act, 1970.
v. The Employee's Provident Funds and Miscellaneous Provisions Act, 1952.
vi. Employee's State Insurance Act, 1948 2 initiatives under Ease of Doing Business. Now, after careful consideration, and in order to promote Startups, Government of Odisha is pleased to introduce a Self-Certification Scheme for "Startups",as defined in the Startup Odisha Policy–2016. Since Employee's Provident Funds and Miscellaneous Provisions Act, 1952 and Employee's State Insurance Act, 1948 are implemented by the Central Government; the scheme will allow Startups to self-certify compliance under the following labour laws implemented by the State Government:—
i. The Building and Other Construction Workers (Regulation of Employment and condition of service) Act, 1996
ii. The Inter-state Migrant Workmen (Regulation of Employment and
Condition of service) Act, 1979.
iii. The Payment of Gratuity Act, 1972.
iv. The Contract Labour (Regulation and Abolition)Act, 1970.
4. This Self-Certification Scheme will be implemented through the Labour & ESI Department in collaboration with department of MSME, Government of Odisha. This scheme aims to facilitate Startups registered/recognized under the Startup Odisha Initiative to comply voluntarily with the provisions of labour laws mentioned above while protecting the interest of workers to create a harmonious relationship between employers, workers and the labour administration.
5. The Startups registered/recognized under the Startup Odisha Initiative, desiring to opt for the Self-CertificationScheme shall apply online through the portal startupodisha.gov.in and be eligible for the following:
(i) For the first year of setting up of the Startups, such establishments will not be inspected under any of the four labour laws mentioned above (viz. BOCW Act, ISMW Act, Payment of Gratuity Act and Contract Labour Act).They will submit online self-declaration instead.
(ii) Startups will be allowed to submit self-certified returns under the aforesaid Acts. From the second year onwards & up to three year from the setting up of the unit, startup will be taken up for inspection only when very credible and verifiable complaint of violation is received in writing and the approval has been given from at least one level senior to the inspecting officer.
ORDER
The order shall come into effect from the date of publication in the Odisha Gazette.
[No. 2450–LL-I-(III)-70/16/LESI.]
By Order of the Governor
ANU GARG
Principal Secretary to Government