Dear Colleague,
Setting up HR in a company may require a different approach and actions based on the type of organization it is. If it is a factory, there will be different requirements compared to the service sector, shops, mines, IT, ITES, or banking. The HR strategy needs to be tailored accordingly.
When mentioning PF/ESI, kindly consider the following aspects as part of the setup:
1. Apply for a PF Code number for the startup company by following the process on the website of the Employees' Provident Fund Organization. Once you fulfill the requirements and are allotted a PF code number for your establishment, you can enroll employees under PF, subject to wage ceiling and eligibility.
2. Apply for an ESI Code number for the startup company by following the process on the website of the Employees' State Insurance Corporation. Once you fulfill the requirements and are allotted an ESI code number for your establishment, you can enroll employees under ESI, subject to the wage ceiling.
3. If you are a shop, you may need to register under the applicable Shops Act provisions.
4. For proposals involving the engagement of Contract Labour and Interstate Migrant Labour, registration under the Contract Labour Act and Interstate Migrant Labour Act is necessary for the establishment.
5. Send a notice of opening under the Payment of Gratuity Act.
6. Register under the Local Body for necessary licenses under the Panchayat or Municipal Act.
7. For a factory, apply for Site Approval for the factory's location and obtain a License under the Factories Act once manufacturing is about to start.
8. Declare the Pay Master under the Payment of Wages Act. For a factory, inform the Factory Manager's name to the Government Authority under the relevant Act.
9. Implement Standing Orders if the stipulated number of employees is engaged under the provisions of the Standing Orders Act.
10. Follow the applicable Minimum Wages if your establishment falls under Scheduled Employment as per the Minimum Wages Act.
These are critical legal requirements among others that depend on the nature of your establishment.
