EXTRAORDINARY

PUBLISHED BY AUTHORITY

No. 470, CUTTACK, TUESDAY, 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

3. Whereas Labour & ESI Department, Government of Odisha already has a

“Voluntary Compliance Scheme for Industries and Commercial Establishments”,

introduced under various labour laws, vide Resolution No. 4870, dtd.30.05.2015 as part of

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

Printed and published by the Director, Printing, Stationery and Publication, Odisha, Cuttack-10

Ex. Gaz. 2177-173+20